CITY COUNCIL AGENDA ITEM
Memo Date: February 3, 2020
Agenda Date: February 26, 2020
Prepared By: Katherine Ennis, P.E., Utilities Deputy Director
Through: John A. Walsh, P.E., Utilities Director
Requested Action:
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Approve a Sole Source Resolution and Execute a Multi-Year Premier Power Services Contract between the City of Cocoa and Duke Energy Florida, LLC (Duke)..End
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BACKGROUND:
Currently there are two (2) 1750-KW generators located at the Dyal Water Treatment Facility that provide back-up power to the plant in the event the normal power supply is interrupted. These generators serve a critical role in ensuring potable water is available to the Cocoa service area. Not only are the generators necessary for potential natural and manmade disasters, but utilized on a daily basis if needed to provide continuous power. During summer months this is especially critical as numerous lightning storms have impacts on continuous and conditioned power supply.
The current generators are at the end of their useful lives and the department has been researching different options to replace this critical infrastructure. Staff compared two different options to replace the current generators: the first option is to purchase two (2) new generators and to operate and maintain with City staff and vendors, and the second option is to contract with Duke Energy Florida, LLC (Duke) to provide back-up generator services for a monthly fee of $36,140 over a contract period of 10 years. The Duke option would have generator power located at the plant but owned, operated, maintained, and monitored 24/7 by Duke. The monthly fee would not start until the generators are installed and operational which is currently estimated to be fall of 2020 (FY20) or possibly next fiscal year depending on the construction, testing and start up time.
In order to pay for the expenses associated with the Duke contract, the existing service contracts for preventative maintenance and repai...
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