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HomeMy WebLinkAboutItem 34 - Generator MaintenanceMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: SEPTEMBER 5, 2023 SUBJECT: RENEWAL OF AN ANNUAL CONTRACT FOR GENERATOR MAINTENANCE RECOMMENDATION: City Council to consider the approval for the renewal of an annual contract for utility generator maintenance with Diversified Power Systems for the Public Works Department. FUNDING SOURCE: Funds available in the Utility Enterprise Fund for an annual estimated amount of $24,100. BACKGROUND: A new State law passed after the winter storms of 2021 requires backup generation of water and wastewater plants. This contract establishes annual pricing for testing and quarterly maintenance of the City's generators located at the Water and Wastewater Plants as well as 17 lift stations. Maintenance of non -utility generators is on separate contract. Bids were taken in accordance with the City Purchasing Policy. Formal bids and advertisements are not required for purchases under $50,000. The contract was for an initial one-year period with three, optional one- year renewals. If approved, this will be for the first renewal available. Staff recommends approval. JH/LW