REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement with Valley Power Systems North, Inc. for Generator Services
Report
BACKGROUND
The Public Works Department and the Water and Sewer Utilities Department provide service and maintenance for 55 emergency standby generators throughout the City. The departments utilize a contractor to perform annual performance testing and maintenance as recommended by National Fire Protection Association (NFPA) Standards for Emergency and Standby Power Systems. The contractor also assists in performing repairs that are recommended from the annual performance testing and maintenance service as well as emergency repairs on an as-needed basis. Typical repairs can include items such as emissions, fueling systems, cooling systems and battery systems.
Proactive performance testing and maintenance of emergency standby generators increases the reliability of the units in case of an emergency. The generator service agreement (Attachment 1) will enable the City to provide reliable emergency power so critical services can be conducted whenever there is a loss of electrical power.
DISCUSSION
A Request for Proposal (RFP) selection process was utilized to solicit proposals for generator services. The RFP was open for three weeks with proposals due on May 4, 2018. Four proposals were submitted and the qualifications of the proposers were evaluated by the Public Works and Water and Sewer Utilities Department staff.
Valley Power Systems North, Inc. submitted the lowest cost proposal (see Attachment 2) to the City while complying with the requirements set in the agreement. Valley Power Systems North, Inc.’s experience, knowledge of the industry and thoroughness of their proposal showed that they are the most qualified firm to perform under this agreement. Staff is recommending approval of a three-year agreement with Valley Power Systems North, Inc. The recommended value of the agreement with the contractor is based on historical data and projected work load. The not-to-exceed value of the contract is based on the projected value of work over a three-year period.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301(b) (“Existing Facilities”) in that the activity consists of the operation, repair, maintenance of existing facilities of publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services.
FISCAL IMPACT
The amount to be paid to the contactor for generator services over the three-year term of this agreement shall not exceed $725,000 subject to annual appropriation of funds. Funding for this contract was included in the FY 2018/19 Annual Operating Budget.
COORDINATION
This report has been coordinated with the Water and Sewer Utilities Department, the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve and authorize the City Manager to execute the Agreement for Generator Services with Valley Power Systems North, Inc. for an amount not-to-exceed $725,000 over the three-year term subject to annual appropriation of funds; and
2. Authorize the City Manager to make minor modifications of the Agreement, if necessary.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Agreement
2. Generator Services - Cost Proposals