Approve agreement with Holt of California Inc., with a maximum compensation of $3,475,000 and a term up to 5 years, to provide continuing maintenance of the County's landfill gas-to-energy facility engines and generators. (No general fund impact) (Lindbo/Kieffer)

The County owns and operates a landfill gas-to-energy facility at the Yolo County Central Landfill.  The facility has been in operation since the late 1980’s when it was originally developed by a private energy firm. In February 2016, the County purchased the landfill gas-to-energy facility from NEO Yolo LLC and MM Yolo LLC.  The facility utilizes Caterpillar engine/generators (gensets) and produces up to 3 megawatts of electricity.

The gas-to-energy facility gensets are Caterpillar diesel engines that are converted to run on landfill gas.  These units run nearly 24-hours per day, 365-days per year, only being shut down for preventative maintenance or in the event of breakdown.  The Division of Integrated Waste Management (DIWM) targets annual operation of each genset of 8,000 hours.  To maintain this high level of usage, it is necessary to establish and maintain strict routine maintenance intervals and prompt response to mechanical failures.

Since the County’s acquisition of the facility, Holt of California, Inc. (Holt) has provided this maintenance as the authorized Caterpillar service provider in this region.    To date, Holt has provided superior service to DIWM. 

The County’s Procurement Policy authorizes the County’s Purchasing Agent to participate in cooperative agreements.  Cooperative agreements are competitively solicited contracts developed and managed by a lead agency for use by state and local agencies nationwide.  The County’s Purchasing Agent reviews cooperative agreements to determine if participating yields advantageous terms and/or pricing to the County instead of conducting our own competitive solicitation.  Sourcewell, a local unit of government of the State of Minnesota specializing in cooperative agreements, awarded a contract to Caterpillar Inc. for Electrical Energy Power Generation Equipment, contract #09222-CAT, in December 2022 following a Request for Proposal process.  Holt of California is an authorized dealer of Caterpillar and thus is part of this Sourcewell cooperative agreement which is incorporated into the County’s agreement with Holt.

The Holt agreement has a base term of three (3) years and can be renewed in December 2025 for an additional two years at the discretion of the DIWM Director.  The total maximum compensation under this agreement is $3,475,000 and covers routine maintenance, major annual overhauls, equipment breakdown repairs and installation of a 5th genset. 

Division staff worked with the General Services Department, Procurement Division to develop the agreement utilizing the Sourcewell program.
County Counsel has approved the agreement as to form

Holt of California is the authorized dealer for Caterpillar in our area.  Caterpillar is a member of Sourcewell and participated in the competitive bid process to Sourcewell's Request for Proposals #092222 and was awarded a contract based on Caterpillar's competitive proposal.  The Sourcewell agreement is incorporated into the Holt of California agreement as Exhibit B.

As Yolo County is also a member of Sourcewell, it can accept contracts awarded through the Sourcewell RFP process.