HomeMy WebLinkAbout9 Generator Maintenance ContractTRUCKEE DONNER
Public Utility District
'400 A
MEETING DATE: May 18, 2022
TO: Board of Directors
FROM: Chad J. Reed, Water Utility Director
AGENDA ITEM #9
SUBJECT: Consideration to approve a multi -year Generator
Maintenance Contract
APPROVED BY
RECOMMENDATION:
Brian C. Wright, General Manager
Authorize the General Manager to execute a contract with Cashman Caterpillar to
complete 2022 annual generator service and repairs in the amount of $54,558.26 with an
option to extend annually for up to three years.
DISCUSSION:
The Truckee Donner Public Utility District water system is fed by 10 active groundwater
wells and 14 pump stations as well as other mission critical sites like the Data Corp Yard
and District office. All of these facilities work cooperatively to provide water and mission
critical services to the customers of the District. These facilities require power to complete
the mission of the District which is to "provide reliable, high quality water and electrical
power services while meeting customer demand, and to manage District resources in a
safe, open, responsible, environmentally sound." When these generators are serviced
they are more efficient and ready for service when they are needed. As we know power
in Truckee can be interrupted for various reasons throughout the different seasons.
The characteristics and cause of electric service interruptions vary depending on the
season. During the winter months, the power may be interrupted for downed power lines
due to the impacts of severe storms or heavy snow loads. During the summer months
electric utility circuit interruptions implemented during high fire risk conditions such as NV
Energy's Public Safety Power Shutoff (PSPS) may interrupt the power for many hours to
days. The District's emergency backup generators are essential in maintaining continuity
of service and critical operations during these intermittent or prolonged outages. These
generators vary in size from 25kw to 450kw. Maintenance and testing of generators of
these sizes require specialized skill sets and equipment. Not only do the technicians
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needs to be familiar with large diesel motors, they also need to have a strong electrical
background to test and certify the electricity generation portion of the generator.
The District's current contract with Cummins Power is coming to an end. In order to meet
the long term maintenance and repair requirements of the District's inventory of backup
generators, staff has determined the need to secure a new generator services contract
with a more comprehensive and detailed scope of work.
Sourcewell has identified Caterpillar Inc. as a competitive bidder for diesel & natural gas
generators, parts and maintenance through an RFP process. Section 3.08.060 of the
District Code states:
"The District may purchase materials, equipment, supplies, information technology
products and services through the State of California procurement program and jointly
with other public agencies"...
By utilizing an approved joint procurement, staff have identified built in efficiencies to
reduce the overall cost of procurements for various goods and services. The overall
savings to the District comes via administrative and advertising costs associated with the
bidding process and costs saved by Sourcewell having negotiated a savings above and
beyond the current market rates.
OBJECTIVES & GOALS:
1.05.020 Objectives:
3. Provide reliable and high quality water supply and distribution system to meet
current and future needs.
6. Manage the District in an effective, efficient and fiscally responsible manner.
1.05.030 Goals:
1. Manage for Financial Stability and Resiliency
FISCAL IMPACT:
The funding source for this item is 2.7.682.10 (power Supply) budget is $15,000.00.
However, the amount of service that was being done for this amount was not sufficient
and the new fixed cost contract will be $54,558.26. The difference between these two
amounts will need to come from reserves which is $5.2 million as of December 31, 2021.
ATTACHMENTS:
None.
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