Generator Service Contract Consideration

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This October 12, 2022 memorandum from the Director of Public Works to the Town Manager recommends approving a 5-year generator service contract with Fidelity Power Systems. The Town now owns eight emergency stand-by generators (added three in the last 2.5 years) valued at about $295,000, and the memo emphasizes that generator reliability is essential to operate the water and wastewater treatment plants and the sanitary sewer pump station. Staff say they lack time and expertise to maintain the units, Fidelity can service multiple brands (the Town has four Cummins and four Kohler units), and the proposed contract costs are Year 1–3: $14,135 each, Year 4: $17,255, Year 5: $31,980, with the expense spread across four budget lines in the enterprise and general fund. The memo includes a proposed motion and staff recommends accepting the 5-year agreement as outlined with the attached contract.

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THE TOWN OF CENTREVILLE 101 LAWYERS ROW CENTREVILLE, MD 21617
410-758-1180 FAX 410-758-4741 WWW.TOWNOFCENTREVILLE.ORG
MEMORANDUM
October 12, 2022
TO: Chip Koogle, Town Manager
FROM: Clifford Matthews, Director of Public Works
RE: Generator Service Contract Consideration
For your consideration, please see the enclosed 5-year generator service contract from Fidelity
Power Systems.
With the addition of three more generators in the past two and a half years, we now have a total
of eight with a value of approximately $295,000 dollars. These are emergency stand-by
generators, with the key word EMERGENCY. If the generators do not start or work properly
when needed, the Water/Wastewater Treatment Plants and the Sanitary Sewer Pump Station will
not operate. No operation of the water side could lead to no domestic water or fire flow for the
Town. On the wastewater side, this means sanitary sewer overflows, WWTP violations and
fines. The Town staff does not have the time or expertise required to maintain these generators to
the extent required to keep them in top condition to be ready and operate in the event of a
disaster. Fidelity was selected to provide a quote because they have adequate staffing and the
ability and expertise to service more than one brand of generators. The Town currently has four
Cummins and four Kohler generators. Similar companies will only work on one specific brand of
generator.
As you will see in this 5-year service agreement, the cost for this year for all eight generators is
$14,135. This expense is spread over four contract service budget lines in the enterprise and the
general fund operating budget. The annual cost differences reflect the level of service required in
the out years. The out going years will also be budgeted in the operating budget for those budget
lines.
Staff recommends accepting this 5-year service agreement as outlined with the attached contract
for service.
Respectfully submitted for your consideration.
PROPOSED MOTION:
I MAKE A MOTION TO APPROVE THE 5-YEAR SERVICE AGREEMENT AS OUTLINED
WITH THE ATTATCHED CONTRACT FOR SERVICE WITH FIDELITY POWER
SYSTEMS FOR THE PRICE AS SPECIFIED. YEAR 1 = $14,135, YEAR 2 = $14,135, YEAR
3 = $14,135, YEAR 4 = $17,255, YEAR 5 = $31,980.