CITY OF FAIRFIELD
RESOLUTION NO. 2025-24
SUSPENDING COMPETITIVE BIDDING, AUTHORIZING THE EXECUTION OF A CONTRACTOR
SERVICES AGREEMENT BETWEEN THE CITY OF FAIRFIELD AND HOLT OF CALIFORNIA, AND AUTHORIZING AN UPDATE TO THE FISCAL YEAR 2024-2025 BUDGET FOR COGENERATION
ENGINE MAINTENANCE SERVICES
WHEREAS, the City owns and operates the Central Utility Plant (CUP) within the Civic Center Complex, which includes City Hall, Council Chambers, Police Department, Fire Station 37, Community Center, and the Adult Recreation Center buildings; and
WHEREAS, the CUP employs a cogeneration system to supply most of the Civic Center Complex's electricity, heating, and cooling needs , and the remaining needs are supplied by local utility companies; and
WHEREAS, on January 2, 2025, the cogeneration engine, a critical component of the cogeneration system, had significant mechanical failures that resulted in the complete shutdown of the entire system; and
WHEREAS, the City’s monthly utility costs can range from $53,000 during off -peak months to $125,000 during peak months when the CUP is inoperable; and
WHEREAS, the City solicited and received a proposal for repairs from Holt of California (Holt), a local authorized dealer for Caterpillar Inc., the manufacturer of the CUP; and
WHEREAS, the City participates in a cooperative purchasing agreement with Sourcewell , a government agency that conducts rigorous competitive procurement processes on behalf of other government agencies nationwide; and
WHEREAS, Caterpillar Inc. is a participating vendor in the Sourcewell cooperative under Contract No. 092222-CAT; and
WHEREAS, City of Fairfield Ordinance No. 2019-10 authorizes the Council to suspend competitive bidding and procure general contractual services through the use of an alternative selection process, such as the cooperative purchasing agreement with Sourcewell, if such procurement is in the best interests of the City; and
WHEREAS, funding for cogeneration engine repairs was not budgeted in the fiscal year (FY) 2024- 2025 Budget, thus requiring an increase of appropriations of $224,790 in the Cogeneration Fund (Fund 531); and
RES. NO. 2025-24
WHEREAS, the revised appropriation constitutes an update to the FY 2024 -2025 Budget approved pursuant to Resolution No. 2024-133.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:
Section 1. The council hereby suspends competitive bidding and authorizes the city manager to enter into a contractor services agreement with Holt in the amount of $490,790 ($446,172 plus a 10% contingency of $44,618) for cogeneration engine repairs.
Section 2. The public works director or designee is authorized and directed to do all things necessary to implement the Agreement and budget adjustment.
Section 3. The council hereby approves a one-time budget adjustment of $224,790 from the Cogeneration fund balance (Fund 531) to its operating budget (Organization Code 53160315).
Section 4. The council hereby approves an increase in appropriations of $ 224,790 to the Cogeneration Fund (Fund 531) operating budget.
PASSED AND ADOPTED this 4th day of February 2025, by the following vote:
AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________
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MAYOR
ATTEST:
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CITY CLERK