Agenda Item Wording:
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Award a sole source contract for City-wide generator maintenance - Authorize the City Manager to award a sole source service contract to Sollid Power Systems, Inc. for city-wide generator maintenance. This contract will be for one year, with 4 optional one-year renewals and a not to exceed amount of $75,000 per year, $375,000 over the life of the contract.
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Deadline for Action: 7/15/2024
Submitting Department: Public Works
Contact Name and Phone Number: Danny Galindo, Public Works Manager
Department Recommendation:
Award a sole source service contract to Sollid Power Systems, Inc. for city-wide generator maintenance at an annual cost not to exceed $75,000, $375,000 over the life of the contract, to be paid from various divisions in the General Fund and Enterprise Funds where the generators are located/used. Staff is recommending the initial contract be for one year, with an option to renew annually for up to four years.
Background Discussion:
The City of Visalia has 23 standby electrical generators throughout the city. These generators provide temporary electrical power in the event of a power outage. Annual and semi-annual maintenance is a crucial part of ensuring that the city has a smooth, dependable back-up power source if standby generators are needed. Sollid Power Systems currently holds the City’s generator service contract, and Staff is requesting to, again, sole source these services to Sollid Power Systems because they are located within a reasonable response time (Lemoore) and they are the only nearby vendor that provides the specific service, repair, and maintenance for all of the City’s various standby generators.
In the past, this contract was managed by the City’s Information Services Division, as the generators originally only served that division. The new contract will centralize all standby generator maintenance with the Fleet Maintenance Division of the Public Works Department since these systems are now providing service to more diverse and sophisticated systems, and this service primarily revolves around engine maintenance.
Fiscal Impact:
Generator maintenance and service are budgeted in various divisions in the General Fund and Enterprise Funds, based upon location and use.
The total amount expended City-wide over the last 5 years is shown in the figure below:
|
Fiscal Year |
Annual Cost |
|
2019-20 |
$ 57,721.15 |
|
2020-21 |
$ 7,511.72 |
|
2021-22 |
$ 106,931.12 |
|
2022-23 |
$ 53,190.86 |
|
2023-24 |
$ 21,200.59 |
|
TOTALS |
$ 246,555.44 |
Prior Council Action: Council approved a 1-year contract with 4 one-year extensions to Sollid Power Systems, Inc. on February 5, 2018.
Other: N/A
Alternatives: To not authorize the sole source award of a generator maintenance contract, put out a new request for proposals to competitively select a vendor. However, based on the review by City Staff, there are no other factory-authorized vendors that are certified to repair the City’s entire fleet of generators, consisting of multiple manufacturers, models, and fuel-types. Therefore, this option is not recommended.
Recommended Motion (and Alternative Motions if expected):
recommendation
Award a sole source service contract to Sollid Power Systems, Inc for city wide standby generator maintenance not to exceed $75,000 annually, $375,000 over the life of the contract, to be paid from various divisions in the General Fund and Enterprise Funds.end
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
Rates and Scope of Services
Sollid Power Estimate #1256