HomeMy WebLinkAbout10 - Maintenance and Repair Services of City GeneratorsTO:
FROM
CITY OF
NEWPORT BEACH
City Council Staff Report
August 13, 2019
Agenda Item No. 10
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Mark Vukojevic, Utilities Director - 949-644-3011,
mvukojevic@newportbeachca.gov
PREPARED BY: Joshua Rosenbaum, Senior Management Analyst,
jrosenbaum@newportbeachca.gov
PHONE: 949-644-3057
TITLE: Amendment No. Two with Global Power Group, Inc. for Maintenance
and Repair Services of City Generators
ABSTRACT:
The City has thirty backup power generators located throughout the City that require
regular preventative maintenance and as -needed repairs. The Fire, Library, Police, Public
Works, and Utilities Departments utilize the services of a specialty contractor, Global
Power Group, Inc. for these services. The current contract expires on June 30, 2020,
and a $120,000 amendment to the agreement is requested for the remainder of the term
and fiscal year.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Approve Amendment No. Two to the Maintenance/Repair Services Agreement with
Global Power Group, Inc., for preventative maintenance and as -needed repair
services for City generators, adding $120,000 to the contract for a total not -to -exceed
amount of $495,000 for the remainder of the term of the agreement; and
c) Authorize the Mayor and City Clerk to execute the Agreement.
FUNDING REQUIREMENTS:
The Fiscal Year 2019-20 adopted budget includes sufficient funding for preventative
maintenance and as -needed repair services for City generators. The Utilities Department
expenses these services to the Streetlight Services/Electrical Generator Maintenance
account 0109063-851001; other departments account for these services in their
respective operating budgets.
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Amendment No. Two with Global Power Group, Inc. for
Maintenance and Repair Services of City Generators
August 13, 2019
Page 2
DISCUSSION:
The City has thirty power generator units that are located throughout the City including
the Civic Center, wastewater lift stations, water pump stations, the Corporation Yard, the
Utilities Yard, Fire stations, Lifeguard headquarters and Police Headquarters. All units
require regular preventive maintenance and testing, along with repairs. These generators
provide backup power in the event of power outage and are vital pieces of equipment in
times of emergency and other unexpected occasions. The maintenance and upkeep of
all City generators is essential to ensure readiness and is a significant facet of our City's
emergency preparedness efforts. Multiple departments utilize these contract services and
the Utilities Department oversees this contract for the City.
In June 2015, the City Council awarded the original contract with a not -to -exceed amount
of $300,000 for a five-year term, expiring on June 30, 2020. In February 2018, due to
unforeseen amounts of repair work, the Agreement was amended to increase the amount
by $75,000 for a total of $375,000. The revised agreement amount anticipated an
average expenditure of $75,000 per year. However, needed repairs were not sufficiently
budgeted in the agreement and expenditures have averaged $93,000 per year. For
example, one generator required approximately $30,000 in repairs.
The Utilities Department recommends a second amendment to increase the agreement
by $120,000 for a total amount of $495,000. The request of $120,000 is above the annual
average but will allow the Departments some additional flexibility in the event of an
emergency repair. This amendment allows Global Power Systems to provide the next
quarterly inspection in September and subsequent inspections and repairs for the
remainder of the fiscal year. In early 2020, staff will issue a new Request for Proposals
in anticipation of the agreement term ending and a new fiscal year.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A —Amendment No. Two to Maintenance/Repair Services Agreement with
Global Power Group, Inc.
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ATTACHMENT A
AMENDMENT NO. TWO TO
MAINTENANCE/REPAIR SERVICES AGREEMENT
WITH GLOBAL POWER GROUP, INC. FOR
PREVENTATIVE MAINTENANCE AND AS -NEEDED REPAIR SERVICES FOR
CITY GENERATORS
THIS AMENDMENT NO. TWO TO MAINTENANCE/REPAIR SERVICES
AGREEMENT ("Amendment No. Two") is made and entered into as of this 13th day of
August, 2019 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a
California municipal corporation and charter city ("City"), and GLOBAL POWER GROUP,
INC., a California corporation ("Contractor"), whose address is 12060 Woodside Avenue,
Lakeside, California 92040, and is made with reference to the following:
RECITALS
A. On June 18, 2015, City and Contractor entered into a Maintenance/Repair
Services Agreement ("Agreement") for to engage Contractor to perform
maintenance and/or repair services for City ("Project").
B. On February 1, 2018, City and Contractor entered into Amendment No. One to the
Agreement to increase the total compensation to Contractor.
C. The parties desire to enter into this Amendment No. Two to increase the total
compensation as a result of an unanticipated increase in the need for repair
services.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. COMPENSATION TO CONTRACTOR
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "City shall pay Contractor for the Services on a time and expense not -to -exceed
basis in accordance with the provisions of this Section and the Schedule of Billing Rates
attached hereto as Exhibit B and incorporated herein by reference. Except as otherwise
provided herein, no rate changes shall be made during the term of this Agreement without
the prior written approval of City. Contractor's compensation for all Services performed in
accordance with this Agreement, including all reimbursable items and subcontractor fees,
shall not exceed Four Hundred Ninety Five Thousand Dollars and 00/100
($495,000.00), without prior written amendment to the Agreement."
The total amended compensation reflects Contractor's additional compensation for
additional Services to be performed in accordance with this Amendment No. Two,
including all reimbursable items and subcontractor fees, in an amount not to exceed One
Hundred Twenty Thousand Dollars and 001100 ($120,000.00).
2. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
Global Power Group, Inc. Page 1 10-3
IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:_ Vj /Z o IIf I
c�
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By: ., - By:
Ffl1. Aaron C. Harp VJJA 7.10•(9 Diane B. Dixon
City Attorney Mayor
ATTEST:
Date:
sm
Leilani I. Brown
City Clerk
CONTRACTOR: Global Power Group,
Inc., a California corporation
Date:
By:
Salvatore Martorana
President
Date:
By:
Salvador Ceballos
Chief Financial Officer
[END OF SIGNATURES]
Global Power Group, Inc. Page 2 10-4