R2026-114 Resolution Authorizing a Six-Year Maintenance Agreement with Altorfer Inc. for South Water Treatment Plant Emergency Standby Generators

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Council Memo Public Works Department No. 2026-57 DATE: 6/1/2026 TO: Honorable Mayor Julie Moore Wolfe and City Council Members FROM: Melissa Hon, City Manager Matt Newell,Director of Public Works Robert Weil,Water Production Manager John Dodwell,Water Production Maintenance Supervisor SUBJECT: Resolution Authorizing a Six-Year Maintenance Agreement with Altorfer Inc. for South Water Treatment Plant Emergency Standby Generators SUMMARY RECOMMENDATION: It is recommended that the City Council adopt the attached Resolution authorizing a six-year Maintenance Agreement with Altorfer Inc. for South Water Treatment Plant Emergency Standby Generators for a fee of$111,852.00. BACKGROUND: The South Water Treatment Plant(SWTP)has two large Caterpillar diesel powered emergency standby generators to supply electricity to the plant whenever electricity is interrupted. Altorfer Inc. has provided emergency standby generator maintenance and repair services since the SWTP was commissioned in 1988. The standby generators are tested regularly, including full-load tests, and continue to perform well. Since Altorfer is the firm most familiar with the generators and is authorized Caterpillar representative, they were asked to provide a proposal for a new six-year maintenance agreement. The maintenance tasks to be performed in the years 2026 through 2031 are: • Comprehensive Inspections • Routine Full Service • Engine Cooling System Service • Intermediate Cooling System Service • Starting Battery Replacement Service • Air Filter Maintenance The tasks are performed over a six-year period based on the amount of time that the generators are operated. Altorfer is the regional dealer and maintenance services firm for Caterpillar generators and electrical control systems. The previous six-year agreement(which expired this year)cost$11,638 per year. The proposed new agreement will cost$18,642 per year, or$111,852 for 6 years. Reasons for the price increase include: the previous bid was pre-COVID and labor costs have increased 60% in the meantime; parts have increased 20%; travel costs have increased.