AGENDA TITLE:
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Adopt a Resolution Authorizing Interim City Manager to Execute Amendment No. 5 to 2019-2021 Standby Generators Maintenance, Repair, and Rental to Holt of California, of Pleasant Grove (PW)
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MEETING DATE:
May 1, 2024
PREPARED BY:
Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt Resolution Authorizing Interim City Manager to Execute Amendment No. 5 to 2019-2021 Standby Generators Maintenance, Repair, and Rental to Holt of California, of Pleasant Grove.
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BACKGROUND INFORMATION:
The City of Lodi owns and operates 30 emergency standby generator sets at this time that range in size between 6six kilowatt (“kW”) to 2000 kW. The generators are located at critical facilities where operation during an extended power outage is necessary to maintain public health and/or safety. Since September 2013, the City has outsourced the specialized preventative maintenance required to provide reliable operation. Appropriate generator maintenance is even more important now considering recent Pacific Gas & Electric Public Safety Power Shutoffs.
In addition to regular maintenance, Holt of California is also contracted to provide generator repairs on an as-needed basis to minimize backup power downtime, and to provide a 2,000 kW standby generator rental reserved for up to 14 days for backup power at the White Slough Water Pollution Control Facility (“WSWPCF”). The generator is used during planned electric service interruption resulting from maintenance activities at the Northern California Power Agency’s power plant, and to meet State requirements of redundant power supply for WSWPCF operations.
On June 19, 2019, Council awarded the contract for 2019-2021 Standby Generators Maintenance, Repair, and Rental to Holt of California, of Pleasant Grove, in the amount of $495,895, and authorized the City Manager to execute change orders in an amount not-to-exceed $100,000. The contract was extended on May 13, 2021 and again on June 14, 2023. The current contract with Holt is set to expire on June 30, 2024. The contract, consistent with previous contracts, has included the ability to extend the contract if mutually agreeable to the City and the contractor. Holt will not agree to extend the contract under the current terms due to increased operating costs.
To address the contractor’s concern, staff recommends extending the contract for an additional 1 year with a Consumer Price Index (CPI) adjustment. The CPI adjustment will reflect a 1-year increase of 3.33 percent based on data between January 2023 and January 2024.
If approved, and contingent on the Fiscal Year 2024/25 Budget being adopted by Council, this resolution would allow staff to utilize various operating accounts up to an additional $200,000 and retain the City Manager’s authority to execute additional change orders for $100,000 per fiscal year over the life of this contract, including extensions. The additional change order authority remains necessary to address unforeseen repairs that exceed current limits.
STRATEGIC VISION:
5C. Infrastructure: Address deferred maintenance.
FISCAL IMPACT:
By performing preventative maintenance efforts, the City will realize a reduction in costly repairs and increased reliability of emergency standby generators supporting critical facilitates. Approximately 15 percent of this contract will impact the General Fund.
FUNDING AVAILABLE:
Funding for this contract is budgeted in the following operating accounts:
Public Works Facilities Services (10051000)
Wastewater (53053003/53053004/53053005)
Water (56052003/56052005)
Electric Utility (50064200)
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Charles E. Swimley
Public Works Director
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Andrew C. Keys
Interim City Manager