Item Coversheet
Town of Miami Lakes
Memorandum

To:Honorable Mayor and Councilmembers
From:Alex Rey, Town Manager
Subject:Authorizing Bid Waiver for Extension of Generator Rental Agreement
Date:9/5/2017

Recommendation:

It is recommended that the Town Council authorize a waiver of the competitive solicitation process under Section 5(d) of Ordinance 12-142 and authorize the Town Manager to extend our current rental agreement with Pantropic Power to reserve an emergency generator until October 31, 2017.

The total cost to rent the generator for the period June 1 to October 30, 2017 is $23,795. Since the rental period extends to the next fiscal year where $4,800 is proposed in the FY 2017-18 Budget, a transfer of $19,175 is required for FY17 for the period June 1 – September 30, 2018. Funds will be taken from Administration Health and Life Insurance line item where there is a surplus, to the Hurricane Expenses line item in Administration to cover the cost of the emergency generator.

Background:

The Town funded the acquisition of a permanent generator and the construction of a generator storage area in the current fiscal year. To that end, it contracted Basulto & Associates, Inc. to provide design and consulting services for the purchase and installation of a permanent generator for the Government Center. The Town also received authorization from the Town Council to piggyback a National Joint Purchasing Alliance (“NJPA”) contract with Pantropic Power for the purchase of a generator.

However, as we were able to get a more detail cost related to the purchase of the generator and construction of the storage area, the estimate for the total project escalated to approximately $270,000. At this point, we re-evaluated all of the possible alternatives, and have determined that our best option is to purchase a portable generator for an estimated $125,000. This generator will be store off-site.

Given the change in plans and the lack of sufficient time to prepare a solicitation for another back-up generator, it is not practical to comply with the requirements of Section 5 of Ordinance 12-142. Instead, the Town should extend the rental agreement already in place to secure a back-up generator for the remainder of the hurricane season.

For the reasons stated above, it is recommended that the Town Council authorize a waiver of the competitive solicitation process under Section 5(d) of Ordinance 12-142, and authorize the Town Manager to extend our current rental agreement with Pantropic Power to reserve an emergency generator until October 31, 2017.



The cost associated with the rental can vary greatly depending on how active the storm season. For instance, the reservation alone can cost between $10,000 to $30,000 depending on the length of the rental period. In addition to the rental cost, there is a fee of $250 on delivery to the Town, and a usage fee of about $268 per day of use, assuming a 12-hour day. In the last few years, the Town has not required the generator to be deployed and has managed to keep costs down by avoiding operational costs. However, recognizing the high costs associated with the yearly rentals, the Town has been exploring other, more permanent solutions that could save on expenses in the long term.

The cost associated with the rental can vary greatly depending on how active the storm season. For instance, the reservation alone can cost between $10,000 to $30,000 depending on the length of the rental period. In addition to the rental cost, there is a fee of $250 on delivery to the Town, and a usage fee of about $268 per day of use, assuming a 12-hour day. In the last few years, the Town has not required the generator to be deployed and has managed to keep costs down by avoiding operational costs. However, recognizing the high costs associated with the yearly rentals, the Town has been exploring other, more permanent solutions that could save on expenses in the long term.
ATTACHMENTS:
Description
Resolution
Rental Extension