Title
Recommendation to Authorize the City Manager to Execute a Five-Year Agreement with PowerGen, Inc. for Generator Maintenance and Repair Services at Various City Facilities for a Total Amount Not-to-Exceed $148,069.
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities). (Public Works 50141600, 26441610, and 60341590)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) uses contract services to maintain and repair its emergency power backup generators for critical City buildings and sewer lift stations throughout the City. The existing service contract terminates on June 30, 2024. Staff completed a Request for Proposal (RFP) process and is now recommending the execution of a five-year agreement with PowerGen, Inc., for generator maintenance and repair services at various City facilities, for a total amount not-to-exceed $148,069.
BACKGROUND
The City operates thirty-two (32) emergency power backup generators, twelve (12) of which supply emergency power to critical facilities including Fire, Police, City Hall, and City Offices. Twenty (20) generators provide emergency backup power to storm and sewer lift stations within the City limits. The service provider performs annual routine maintenance on all generators, and a transfer and load test service once every three (3) years.
DISCUSSION
On March 8, 2024, the Public Works Department issued an RFP for Generator Maintenance and Repair Services (Various Locations). To solicit the maximum number of bids and most competitive prices, the RFP was published on the City’s website and the Bay Area News Group, as well as forwarded to the City’s list of qualified contractors and thirteen (13) separate builders’ exchanges throughout the Bay Area. After a bidding period of twenty-one (21) days, the City received five (5) responsive bids.
|
Proposer |
Location |
Proposal Amount |
|
PowerGen, Inc. |
Tracy, CA |
$66,573.42 |
|
Generator World |
Sacramento, CA |
$102,620.00 |
|
Odyssey Power |
Orange, CA |
$129,935.00 |
|
Collicutt Energy |
West Sacramento, CA |
$145,500.00 |
|
CD & Power |
Martinez, CA |
$418,460.00 |
Services solicited include both annual maintenance and load testing done once every three years. The proposal amounts included in the table above include services for one year. Staff reviewed the proposals, consistent with the City’s Purchasing Policy Guidelines and the selection criteria set forth in the RFP and have selected PowerGen Inc. as the provider best suited to meet the City’s needs.
Staff recommend awarding a five-year agreement to PowerGen Inc. for a total not-to-exceed amount of $148,069. The contract total includes five years of annual maintenance ($15,060.40/year), load testing in the third year of the contract ($51,513.02/year) and a 10% contingency ($13,461). Service costs are inflated by an estimated annual 3% Consumer Price Index. Use of contingency shall be for items of work outside the original scope and requires prior written authorization by the City. The specifications also informed the successful bidder that this contracted service is subject to prevailing wage requirements pursuant to State Law. The contract is attached as Exhibit 1.
ALTERNATIVES
• Authorize the City Manager to execute a five-year agreement with PowerGen, Inc. for generator maintenance and repair services.
• Do not authorize the City Manager to execute an agreement with PowerGen, Inc. for generator maintenance and repairs services and provide alternative direction to staff. This will likely create a gap in service for the City’s facility generators.
FINANCIAL IMPACT
Funds for this contracted service are budgeted in the Facilities Maintenance (60341590-52140) and Sewer (50141600-52140) and Storm (26441610-52140) operating accounts. There is no impact to the General Fund.
|
Cycle |
Routine Service (Annual) |
Preventative, Transfer & Load Tests (Triennial) |
Contingency 10% |
Total Authorized Amount |
|
FY 24/25 |
$15,060 |
- |
$1,506 |
$16,566 |
|
FY 25/26 |
$15,512 |
- |
$1,551 |
$17,063 |
|
FY 26/27 |
$15,978 |
$54,650 |
$7,063 |
$77,691 |
|
FY 27/28 |
$16,457 |
- |
$1,646 |
$18,103 |
|
FY 28/29 |
$16,951 |
- |
$1,695 |
$18,646 |
|
5-Year Total |
$79,958 |
$54,650 |
$13,461 |
$148,069 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code. Also, the proposed action is consistent with the City’s Strategic Priority to “Invest in Transportation, Infrastructure, Economic Opportunities & Historic Resources.” This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
In accordance with CEQA, this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities).
CLIMATE IMPACT
Climate change may bring more intense storms, periods of drought and extreme heat events. Emergency power backup generators are a critical component to keeping critical facilities operational and building resiliency in the face of climate change.
RECOMMENDATION
Authorize the City Manager to execute a five-year agreement with PowerGen, Inc. for generator maintenance and repair services at various City facilities for a total amount not-to-exceed $148,069.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Mike Billington, Facilities Manager
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Agreement