COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Bill Young, Transportation and Maintenance Services Superintendent
SUBJECT:Title
Approve Cooperative Purchase Agreement and Cooperative Purchases of Electrical Energy Power Generation Equipment with Related Parts, Supplies, and Services from Empire Southwest, LLC, dba Empire Power Systems, Inc. (Bill Young)
Body
FUNDING SOURCE:
General Fund
PURPOSE:
Approve Cooperative Purchase Agreement (500406) utilizing the Sourcewell Contract 0922222-CAT and cooperative purchases of electrical energy power generation equipment with related parts, supplies, and services of in accordance with City Code §§ 3.10.010.3(A)(1) and 3.10.030.1.
BACKGROUND:
The Lake Havasu City Public Works Department, Facilities Maintenance Division, is requesting approval of annual expenditures exceeding $50,000 with Empire Power Systems through the Sourcewell Contract 0922222-CAT for electrical energy power generation equipment with related parts, supplies and service. Empire Power Systems has been largely responsible for maintaining and repairing the City’s back-up generators.
The estimate for Fiscal Year 2023-24 service, repair and maintenance costs is $225,000. These service, maintenance, and repair costs are incurred in the day-to-day operations and are smaller dollar items, which cumulatively exceed $50,000 on an annual basis. Therefore, staff is requesting approval for both service costs and repair/maintenance costs for this fiscal year.
The proposed Cooperative Purchase Agreement is for a term ending on November 22, 2026, and allows the purchase of electrical energy power generation equipment with related parts, supplies, and services. Staff requests authorization to renew the Cooperative Purchase Agreement for one additional one-year term. Historically, the City exceeds $50,000 for the purchase of the items listed above. City staff seeks approval to exceed annual expenditures of $50,000 for purchase of these items for the term and any renewals of the proposed Cooperative Purchase Agreement. These authorizations are for items routinely purchased by the City and any non-routine purchases exceeding $50,000 will be presented to City Council for separate consideration.
COMMUNITY IMPACT:
Keeping the City’s generators in good working condition is imperative to running critical infrastructure and maintaining safety in the community.
FISCAL IMPACT:
Funds are allocated and available in the Public Works Facilities Maintenance Division budget for Fiscal Year 2023-24. Staff anticipates expenditures could be approximately $225,000 for this fiscal year, depending on actual repair and maintenance issues.
ATTACHMENTS:
N/A
SUGGESTED MOTION:Recommended Action
I move to approve and authorize the City Manager to execute the Cooperative Purchase Agreement for electrical energy power generation equipment with related parts, supplies and service with Empire Southwest, LLC, dba Empire Power Systems, Inc.; approve routine expenditures to exceed $50,000 annually; and authorize City staff to exercise the option to renew the Agreement for one additional one-year term.