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Agenda No. 5.

CITY COUNCIL MEMORANDUM

City Council Meeting:

May 20, 2025

Department:

Facility & Fleet

Subject:

Resolution 25-R-054 - Authorizing an increase in expenditures with GenServe Inc. for preventative maintenance and on-call generator services (B.James/D.Hardin/C.Hernandez)

BACKGROUND

On January 7, 2025, City Council approved Resolution 24-R-143 authorizing a service agreement with GenServe for On-Call Generator Services with a not-to-exceed (NTE) amount of $200,000. Following the approval of this agreement, staff identified that three generators were not included in the initial proposal. We are currently in the process of acquiring a new replacement generator at E. Live Oak, which will need to be incorporated into the service agreement. Consequently, the agreement with GenServe has been amended, potentially resulting in additional costs for the preventative maintenance of these generators.

GOAL

To obtain authorization from City Council to increase the NTE amount of $200,000 to $275,000 for on-call generator services.

COMMUNITY BENEFIT

City buildings including Emergency Services, and all pump and lift stations would be able to maintain full operations during inclement weather and other types of emergency situations, therefore allowing for all services to be continued throughout the City and its residents.

SUMMARY OF RECOMMENDED ACTION

City staff recommends approving an increase of the NTE amount of $200,000 dollars to $275,000 for the service agreement with GenServ Inc that will expire December 30, 2027 with the option to renew the contract for two (2) extensions of one (1) year each.

FISCAL IMPACT

Total fiscal impact of this contract will be $275,000.00 (an additional $75,000 more than what was previously authorized). Funds are available and approved through Fleet’s base budget for FY 24-25.

RECOMMENDATION

City staff recommends approval of Resolution 25-R-054

Attachments

Resolution 25-R-054 with attachements