October 14, 2025
Agenda Item No. 12
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Mark Vukojevic, Utilities Director - 949-644-3011, [email protected] PREPARED BY:
Joshua Rosenbaum, Senior Management Analyst - 949-644-3057, [email protected] TITLE:
Amendment to Services Agreement with Global Power Group, Inc., for Maintenance and Repair Services for City Generators ABSTRACT:
The Utilities Department manages the City’s 30 mobile and backup emergency power generators. Utilities works with a contract team that provides regular preventative maintenance, testing and as-needed repair services. The generators are large, fuel-driven engines that provide backup electricity in the event of an emergency. They are located throughout the City and serve the City’s utility systems, fire stations and other key facilities. The current contractor, Global Power Group Inc. has performed satisfactorily over the last three years. Therefore staff is requesting that the City Council approve a two-year extension of the existing agreement.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. One to the Maintenance Services Agreement with Global Power Group, Inc., to extend the existing agreement two years until December 31, 2027, and to increase the contract amount by $250,000, and authorize the Mayor and City Clerk to execute the Agreement.
DISCUSSION:
The City owns and maintains 30 mobile and stationary back-up power generators, managed by Utilities Department electricians. Most of these generators stand ready to provide backup power for the City’s water and wastewater systems. Other emergency generators are placed at all fire stations, the police station, lifeguard headquarters, the Civic Center and the Public Works Corporation Yard.
The engine-driven generators and the associated electrical systems and switch gear are highly complex and require knowledgeable staff with mechanical and electrical abilities and certifications.
The generators require regular preventative maintenance, live testing, certification and as-needed repairs. As these generators provide backup power in the event of a power outage, they are vital pieces of equipment in an emergency. The maintenance of all City generators is essential to ensure readiness. The generators are a significant part of our emergency preparedness efforts.
The agreement with Global Power Group, Inc., covers quarterly testing, inspection and routine maintenance of each generator and electrical gear. It also includes one annual full-load testing along with annual inflation adjustments and contingency allocations. The contingencies include additional engine repairs, battery, electrical switch gear, circuit board replacements, temporary generator rentals and the fueling of the generators. In an example of one such contingency, generators at two fire stations recently required expensive smog filter system replacements. Newport Beach’s marine environment tends to corrode generator parts, requiring frequent replacement.
The Utilities Department originally entered into an agreement with Global Power in 2022 following a competitive selection process. Global Power has provided generator services to the City for more than a decade, including the most recent three-year agreement. Staff remains satisfied with the contractor’s performance. Staff recommends a two-year agreement extension, bringing the total agreement term to five years. The unit pricing has increased by the consumer price index to adjust for inflationary costs on labor, materials, and equipment. Staff recommends City Council approval to extend the agreement through December 31, 2027, and to increase the agreement’s compensation limit by $250,000.
FISCAL IMPACT:
The adopted budget includes sufficient funding for preventative maintenance and as-needed repairs for City generators. The Utilities Department expenses these services to the Streetlight Services/Electrical Generator Maintenance General Fund account 0109063-851001; other departments and enterprise funds account for these services in their respective operating budgets.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A – Amendment No. One to Services Agreement with Global Power Group, Inc.
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Amendment to Services Agreement with Global Power Group, Inc., for Maintenance and Repair Services for City Generators October 14, 2025
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