REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
DATE: 10/06/2021
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
SUBJECT:
Title
Award Contract to Global Power Group, Inc. for Emergency Stand-By Generators preventative maintenance and as-needed repairs Citywide.
End
EXECUTIVE SUMMARY:
The City of Corona has standby generators at various locations for critical facilities to operate during power interruptions, including planned and unplanned outages. To ensure good working order of these generators, the City issued Notice Inviting Bids 22-001RH for emergency standby generators preventative maintenance, inspection, and repairs City-wide. The City Council will consider awarding a contract for these services.
RECOMMENDED ACTION:
Recommended action
That the:
a. City Council award Notice Inviting Bids 22-001RH for Emergency Stand-By Generators Preventative Maintenance and As-Needed Repairs Citywide to Global Power Group, Inc., the lowest responsive, responsible bidder, for the total not to exceed bid amount of $220,000 and waive any and all minor irregularities in the bidding document as submitted by the said bidder.
b. City Council authorize the City Manager, or his designee, to execute the Maintenance/General Services Agreement with Global Power Group, Inc. in the amount of $220,000 per fiscal year for the initial contract term ending June 30, 2023 with two optional two-year renewals.
c. City Council authorize the General Manager and City Attorney, or their designees, to negotiate and execute non-substantive extensions, change orders, and amendments up to 10% of total contract cost or $22,000 as authorized by Corona Municipal Code Section 3.08.060(J).
d. City Council authorize the Purchasing Manager to issue a purchase order to Global Power Group, Inc. in the amount of $220,000 per fiscal year for the initial contract term ending June 30, 2023, with two optional two-year renewals.
e. Corona Utility Authority review, ratify, and to the extent necessary, direct the City Council to take the above actions.
Body
BACKGROUND & HISTORY:
The City has generators at various locations throughout the City, including water treatment facilities, well sites, booster stations, water reclamation facilities, lift stations, City Hall, Fire Stations, and other City administrative buildings to provide electrical power in the event of a power outage. Preventative maintenance and repair services for emergency standby generators help ensure their intended function and helps to extend their useful life.
ANALYSIS:
During the Fiscal Year 2022 budget process, the City Council approved the operating budget that included generator maintenance activities within the Water Reclamation Utility Fund 572, Water Utility Fund 570, Recycle Water Fund 567, Airport Fund 275, and General Fund 110 for the preventative maintenance and repair services for emergency standby generators citywide.
Notice Inviting Bids 22-001RH was advertised in the Sentinel Weekly pursuant to Corona Municipal Code (CMC) Section 3.08.110 non-public projects formal bidding procedure requirements on July 07, 2021. The City received 4 bids by the submission date of August 27, 2021, following the solicitation of nearly 12 registered contractors through PlanetBids.
|
Vendor |
City |
Bid Amount |
|
Global Power Group Inc. |
Lakeside, CA |
$327,260 |
|
Odyssey Power Corporation |
Anaheim, CA |
$345,123 |
|
Duthie Power Services |
Long Beach, CA |
$476,860 |
|
|
|
|
|
Quinn Company |
Riverside, CA |
Non-Responsive |
Three bids were determined by staff to be responsive. The fourth bid, received from Quinn Company, was non-responsive due to their taking exceptions to the City’s Terms & Conditions.
The basis for the contract award with a value of $220,000 per fiscal year is based on the maintenance tasks associated with the UD’s generator maintenance program and emergency service repairs. The cost for annual preventative for the Maintenance 1 and Maintenance 2 tasks (as outlined in the bid document) are $66,750 and $61,380, respectively. The cost for the Maintenance 3 task, which is performed every 5 years, is $195,500. The Maintenance 3 task schedule will be staggered over 5 years to include 12 generators a year (out of the 60 generators within the City) to lessen the fiscal impacts and ensure a manageable maintenance schedule for desired reliable service. Emergency repairs service contingency funds are needed for any emergency responses or repairs that are required to be performed on the generators due to unexpected mechanical and/or electronic component failures.
|
Maintenance Activity |
Frequency |
Project Cost/year |
|
Preventative Maintenance 1 |
Annually |
$66,750 |
|
Preventative Maintenance 2 |
Annually |
$61,380 |
|
Preventative Maintenance 3 |
Every 5 years (12 generators per year) |
$39,100 |
|
Emergency repairs (contingency funds) |
On an as-needed basis |
$52,770 |
|
|
Total= |
$220,000 |
Staff recommends that the City Council award the Maintenance/General Services Agreement for Emergency Stand-By Generators Preventative Maintenance and as-needed Repair Services Citywide to Global Power Group, Inc. in the amount of $220,000. All licenses and references for the contractor have been reviewed and verified by City staff.
FINANCIAL IMPACT:
Funding for the recommended action is included in the approved Fiscal Year 2022 Utilities Department and Community Services Department Operating Budgets. Funding in future fiscal years will be recommended through the budget process.
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Act (CEQA), which states that operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination, and is exempt from CEQA. This action involves preventative maintenance and repairs of City-wide generators. Therefore, no environmental analysis is required.
PREPARED BY: AFTAB HUSSAIN, MAINTENANCE MANAGER
REVIEWED BY: TOM MOODY, GENERAL MANAGER
Attachments:
1. Exhibit 1 - NIB 22-001RH
2. Exhibit 2 - Addenda
3. Exhibit 3 - Bid Summary
4. Exhibit 4 - MGSA with Global Power Group, Inc.