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March 17, 2026
ITEM TITLE
Contract Amendment: Approve the First Amendment with Global Power Group to Extend the Term of the Contract and Increase Maximum Not-to-Exceed Amount for Emergency Generator Service and Maintenance Report Number: 26-0061
Location: No specific geographic location
Department: Public Works
G.C. § 84308 Regulations Apply: No
Environmental Notice : The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities) and Section 15061(b)(3).
Recommended Action
Adopt a resolution approving the first amendment to the agreement with Global Power Group to provide emergency generator service and maintenance.
SUMMARY
On November 1, 2023 the City of Chula Vista entered into a contractor agreement for Citywide maintenance and emergency services for the City’s backup power generators with Global Power Group (Agreement No. 2023-239). Approval of this item will (1) extend the term of the agreement to now end on June 30, 2028, and (2) increase the maximum not-to-exceed contract amount for Global Power Group to provide these services, from $250,000 to $500,000 over the full term of the agreement. This would allow for continued maintenance and emergency service during the term of the agreement.
ENVIRONMENTAL REVIEW
The proposed project has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it has been determined that the project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities) and Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Thus, no further environmental review is required.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The City of Chula Vista possesses emergency equipment/generators that are necessary to maintain service to the public during a power outage. This equipment requires regular inspection and maintenance services.
In order to procure these services, the City solicited bids on August 4, 2023 in accordance with Chula Vista Municipal Code Section 2.56160.A and received four bids. Global Power was selected as the lowest responsive and responsible bidder and on November 1, 2023, the City entered into a contractor agreement for City -wide maintenance and emergency services for the City’s backup power generators with Global Power Group (Agreement No. 2023-239). Services that the City may require include, but are not limited to:
Testing all stationary generators monthly
Inspecting overall appearance and condition of the equipment including batteries, chargers, fuel tanks, engines, fluid levels, filters and other mechanical components Running the generators quarterly and inspecting all parts for proper function and any abnormalities Load banking the generator at 100% for two (2) hours annually and four (4) hours every 3rd year Annually changing filters and fluids; taking oil and coolant samples and sending to testing laboratory Annual infrared inspection of associated electrical panels and transfer switches while generator is running
Maintaining maintenance and testing logs as outlined by NFPA 110 Removing and dispos ing of all hazardous waste according to federal, state and local hazardous material handling regulations
Maintaining stationary generator fuel at a “Keep Full” service level Global Power performs these services for various City locations and equipment including Fire Stations, Police Department Headquarters, Civic Center, and pump stations. Global Power has performed their services to the satisfaction of the City and has provided well-qualified staff with experience and expertise.
The initial term of the agreement was through June 30, 2026 and included options to extend the contract for two additional one-year terms. The City has been satisfied with the performance of Global Power Group; staff recommends extending the contract for the full term to include the two optional one-year extensions. With this change, the contract will now end June 30, 2028.
The initial not -to-exceed payment amount for the original contract was set at $250,000. In the first three years of the agreement (fiscal years 2024, 2025 and fiscal year to date 2026) the City has paid Global Power approximately $182,000 for services rendered. This amount is higher than originally estimated due to rising fuel costs and more repairs than anticipated. Staff estimates exercising the option to extend t he original agreement for two additional terms through June 30, 2028, will require an additional $250,000. Staff recommends that the not-to-exceed payment amount of the contract be increased to $500,000 to allow for the unanticipated additional costs for services rendered.
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DECISION-MAKER CONFLICT
Staff has determined that the action contemplated by this item solely concerns repairs, replacement or maintenance of existing streets, water, sewer, storm drainage or similar facilities, and the member’s property will not be affected disproportionately to other properties receiving the same services. Consequently, pursuant to Calif ornia Code of Regulations Title 2, sections 18700 and 18702.2(d)(1)), this item does not present a real property-related conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not b een informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no new fiscal impact in the current fiscal year resulting from approving th e amendment to the agreement. Appropriations for this expense are included in the Public Works Department budget.
Staff anticipates the following current and future total expenditures, by fiscal year, under the agreement:
FY26 Projected FY27 Estimated FY28 Estimated
$116,000 $122,000 $128,000
ONGOING FISCAL IMPACT
While the annual maintenance needs for generators can vary based on various factors, as illustrated above, staff anticipates expenditures at approximately $122,000 in FY27 and $128,000 in FY28. Increasing the not-to-exceed contract amount by $250,000 will cover these anticipated expenses. Funding for the contract is included in the Public Works Department budget and will have no additional fiscal impacts. Future contract increases will be considered as part of the normal budget process.
ATTACHMENTS
1. First Amendment to Agreement with Global Power Group
Staff Contact: Tessa Nguyen, Principal Management Analyst Angelica Aguilar, Interim Director of Public Works