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AGENDA ITEM <br />Item No.: <br />Item Description: Generator Service Contract <br />Date: April 9, 2018 <br />Presenter: DJ Goman Agenda Consent Agenda <br />Public Works Supervisor Section: <br />1. Purpose. The purpose of this item is to gain Council Approval to accept a quotation for generator <br />maintenance. <br />2. Background. The city of Orono currently has 19 generators in the inventory with another two being <br />installed at lift stations each of the next 5 years. In order to properly maintain the generators in excellent <br />working condition and ensure their reliability, city staff solicited proposals for maintenance service on the <br />emergency power generators. In the past the city has contracted for maintenance for different generators <br />at different times as the need arose. The purpose of establishing a renewable service agreement is to <br />provide a consistent and preventative means of maintenance with an established cost. <br />3. Project Scope. The generators shall be inspected and provided routine preventive maintenance <br />annually, load banking and emergency repairs as required. <br />4. Cost. The table below is a summary of the quotes received. <br />Firm <br />Year 1 <br />Year 2 <br />Year 3 <br />Year 4 <br />Year 5 <br />Modern Power Solutions <br />$ 25,985 <br />$ 19,292 <br />$ 30,583 <br />$ 22,870 <br />$ 35,998 <br />Power Systems Services, <br />Inc.* <br />$ 31,500 <br />$ 16,950 <br />$ 32,260 <br />$ 17,710 <br />$ 33,220 <br />Interstate Power Systems <br />$ 43,320 <br />$ 26,662 <br />$ 43,320 <br />$26,662 <br />$ 43,320 <br />*Proposal did not include load banking or battery testing. <br />5. Funding. Generator Maintenance will be funded primarily by the Sanitary Sewer Fund. The <br />Sanitary Sewer Fund has a projected end of year balance of $1,797,833. The City Hall and Police <br />department generator will be funded from the Central Services budget and the Navarre Water Plant <br />generator from the Water Fund. <br />6. Staff Recommendation. Staff completed a review of the three companies' proposals and <br />recommends acceptance of the proposal from Modern Power Solutions. Modern Power Solutions' <br />proposal provided the best value and their references provided solid reviews. <br />COUNCIL ACTION REQUESTED <br />Motion to accept the quotation from Modern Power Solutions for generator maintenance in the amount of <br />$25,985 for 2018 and renewable annually for up to five years at the costs shown in the table above. <br />Prepared By: DJG <br />Reviewed By: I <br />Approved By: -TV <br />