REPORT IN BRIEF

Approval is requested for the award of a contract to Peterson Power Systems of San Leandro to overhaul one of two engines at the Power Generation Facility at the Water Pollution Control Plant.

BACKGROUND

The Power Generation Facility currently utilizes two Caterpillar engines fueled by landfill gas to generate electricity to run the Water Pollution Control Plant and for future export to the local electrical distribution grid. The engines must run 24 hours per day seven days per week.

The manufacturer recommends a full engine overhaul after 35,000-40,000 hours of usage. Engine #1 is within that range at this time.

DISCUSSION

Section 2.08.070(b) of the Sunnyvale Municipal Code provides for exceptions to the competitive bidding process in situations where the solicitation of bids would be impractical, unavailing or impossible. When staff contacted Caterpillar for a list of authorized parts/service providers from which to solicit bids for this project, they were told that Peterson Power Systems is the only authorized dealer in the Northern California area. Soliciting bids for this project would be unavailing as it is unlikely than any other Caterpillar authorized dealer would submit a bid.

FISCAL IMPACT

Total cost to the City for labor, parts, technician mileage, acceptance testing and sales tax will not exceed $125,000.

Funds are available in Department of Public Works Environmental Division Account #342733 - Major Maintenance Work Orders.

RECOMMENDATION

It is recommended that Council award a contract in an amount not to exceed $125,000 to Peterson Power Systems of San Leandro to overhaul Engine #1 at the Sunnyvale Power Generation Facility.

Prepared by:

Elaine Wesely
Purchasing Officer

Prepared by:

Mary J. Bradley
Director, Finance

Reviewed by:

Marvin Rose
Director, Public Works

Approved by:

Robert S. LaSala
City Manager

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