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HomeMy WebLinkAbout7 Contract for Generator Maintenance ServicesCONSENT To: Board of Directors From: Stephen Moore Date: July 15, 2020 Subject: Consideration of a Contract for Generator Maintenance Services 1. WHY THIS MATTER IS BEFORE THE BOARD Board authorization is required for procurements in excess of $15,000. 2. HISTORY The District owns and operates 25 large backup power generators that provide continuous electric service during power outages. These generators are located at critical facilities including water wells, pump stations, the District office and the Backup Data Center. Backup generators help to ensure that the District can provide uninterrupted water service to our customers during power outages. They also enable staff to perform essential operations and provide customer service during electric outage events. Backup power generators require routine maintenace to ensure their continued reliability and longevity. Sourcewell, formely National Joint Purchasing Alliance, competitvely bid generator maintenance services from Cummins, Inc. of Sparks, Nevada, and other vendors through a competitive bid process. Section 3.08.060 of the District Code (Joint Purchasing with the State of California and other public agencies) permits the District to take advantage of other agencies competitive procurement processes. Cummins, Inc. is a qualified Sourcewell vendor, and their bid is consistent with District Code requirements. 3. NEW INFORMATION Staff recieved a cost proposal from Cummins, Inc. of Sparks, Nevada, to provide the District with the necessary generator maintenance services. The cost of performing annual planned maintenance for all District generators is $33,830. Annual maintenance services for all generators includes oil changes, checking fluids, belts, hoses, batteries, taking oil samples for labratory testing and any other necessary repairs. 4. FISCAL IMPACT This item was included in the Board Adopted FY20/21 Budget and sufficant funds exist for this procurement. 5. RECOMMENDATION Authorize the General Manager to execute a one year contract, with options to extend for years two and three, with Cummins, Inc. for generator maintenance services, in an annual amount of $33,830, plus a 10% change order authorization for a total not to exceed annual contract amount of $37,213. Joe Horvath Electric Utility Director