AGENDA MEMORANDUM

 

 

Meeting Date:           November 8, 2010

 

From:                          Mike Thornton

 

Subject:                      Purchase request 42820 for repairs to a 510 KW stationary generator located at the 5th Street water plant.

 

 

Staff Recommendation:

Staff recommends approval of the purchase request to Reagan Equipment Co., Inc. for labor and parts to repair the generator for a total of $39,169.71.

 

Analysis:

Fleet Services has requested this purchase for repairs to the 510 KW generator at the 5th Street water plant.  The generator suffered internal engine damage causing it to no longer run.  The generator is currently off-line and a rental generator is providing back-up power as needed.

 

The Fleet Services division ordered a forensics test to determine the cause of the failure.  The forensics report has determined a backfire caused the throttle plate butterfly to snap in half.  The metal debris was then sucked into the engine and caused damage to the internal engine components.

 

The $39,169.71 repair cost includes labor and material for reconditioning of the heads and replacing all pistons and rods.  There may be additional costs if bearings and valves need to be replaced.  The need for additional work cannot be determined until repairs have started.

 

The City’s equipment insurance company will reimburse the City for all repair costs less the $10,000.00 deductible.  Additionally, they are paying for half of the forensics report ($1,750) and are also reimbursing the City for the cost of the rental generator that has been on-site since the failure occurred on May 21, 2010.

 

This generator is one that participates in the load shedding/reduction program operated by the Electric Department.  When this generator is off-line savings to the City and its electric customers through load shedding are being lost.

 

A competitive bid process on this repair is not required as Reagan Equipment is the only factory authorized Waukesha service company in Florida.  Reagan equipment has already performed some work in order for the forensics inspection to be completed.

 

 

 

 

 

Options:

1.  Approve the purchase request to Reagan Equipment Co., Inc.; or

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact

The City will pay the full cost of the $39,169.71 repair.  The insurance company will then reimburse the City the full repair costs less the $10,000.00 deductible or $29,169.71.  The total net cost of this repair to the City is $11,750.00 ($10,000 deductible + $1,750 for ½ of the forensics report).  A budget adjustment has been processed to use available Renewal & Replacement funds to cover this expense.

 

Submission Date and Time:    11/5/2010 3:20 PM____

 

Department: _Fleet Services___________

Prepared by:  _Mike Thornton_________                     

Attachments:         Yes____   No __X___

Advertised:   ____Not Required __X___                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. ___JB_____________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _043-3051-533.46-12__

 

Project No. __436014____________

 

WF No. _____WF0624272 / 1_____

 

Budget  _____$44,170.00_________

 

Available ____$44,170.00_________