HomeMy WebLinkAboutPR 23500: EDC, ACCEPTANCE OF A QUOTE AND ENGAGING THE SERVICES OF PANAMA EQUIPMENT, PREVENTATIOVE MAINTENANCE OF THE GENERATORS AT 501 PROCTER AND 549 4TH STREET 11110
PORT*ARTHUR
ECO\O11IC OE\'EEOFLE\T COR►ORATIO\
INTEROFFICE MEMORANDUM
Date: December 6, 2023
To: The Honorable Mayor and City Council
Through: Ronald Burton, City Manager
From: Terry Stokes,PAEDC Chief Executive Officer
RE: PR 23500 I A resolution authorizing the City of Port Arthur Section 4A Economic
Development Corporation acceptance of a quote and engaging the services of
Panama Equipment of Cleveland, Texas for the Preventative Maintenance of the
generators at 501 Procter and 549 4th Street.
Introduction:
The intent of this Agenda Item is to seek City Council's approval for PAEDC's acceptance of a quote and
entering into a Service Agreement for the preventative maintenance of the two generators servicing the
EDC buildings located at 501 Procter Street and 549 4th Street.
Background:
The PAEDC has or is in the process of installing two generators: one to serve each building in the event
of a power outage. In order to properly maintain the generators for uninterrupted performance,the
PAEDC wishes to contract a servicer to perform preventative maintenance and service as needed on the
generators. Based on qualifications,Panama Equipment is the company that installed the generator at 549
4th Street and is the installer of the new generator at 501 Procter Street. Panama Equipment is familiar
with the pre-owned diesel generator installed at 549 4th Street and has satisfactorily performed
preventative maintenance on the equipment thus far. Three quotes were sought out and received by
PAEDC.
Budget Impact:
The quotes ranged from $7,900.00 - $15,500.00; funds available in EDC Account No. 120-80-325-5318-
00-00-000.
Recommendation:
It is recommended that the City Council of the City of Port Arthur authorize the PAEDC to accept the
quote and enter into a Preventative Maintenance Agreement with Panama Equipment for the two(2)
generator servicing the EDC buildings located at 501 Procter Street and 549 4th Street, in an amount not to
exceed$11,876.94.
P.R.No. 23500
10/6/2023 JMC
RESOLUTION NO.
A RESOLUTION APPROVING THE CITY OF PORT
ARTHUR SECTION 4A ECONOMIC DEVELOPMENT
CORPORATION'S ACCEPTANCE OF A QUOTE AND
ENTERING INTO A SERVICE AGREEMENT WITH
PANANMA EQUIPMENT OF CLEVELAND, TEXAS FOR
THE PREVENTATIVE MAINTENANCE OF TWO (2)
GENERATORS SERVICING THE EDC BUILDINGS
LOCATED AT 501 PROCTER STREET AND 549 4TH
STREET; IN AN ANNUAL AMOUNT NOT TO EXCEED
$11,876.94. FUNDS AVAILABLE IN EDC ACCOUNT NO.
120-80-625-5318-00-00-000
WHEREAS, the City of Port Arthur Section 4A Economic Development Corporation
(PAEDC) owns the facilities located at 501 Procter and 549 4th Streets, Port Arthur,Texas and has
the commitment to maintain the safety and integrity of said premises; and
WHEREAS, generator maintenance is essential to the proper functioning of a system,
while also minimizing the risk for accidents, damage, and more costly repairs down the line.
Additionally, routine maintenance helps to ensure that your generator will run smoothly and
efficiently during a power failure; and
WHEREAS,The PAEDC has or is in the process of installing two generators: one to serve
each facility in the event of a power outage. In order to properly maintain the generators for
uninterrupted performance, the PAEDC wishes to contract a servicer to perform preventative
maintenance and service as needed on the generators. Three quotes were sought out and received
by PAEDC; and
WHEREAS, the quotes, Exhibit "A", were secured from A&A Electric Company of
Beaumont, Texas, Panama Equipment of Cleveland, Texas and SETX Motorsports of Orange,
Texas; ranging from$7,900.00 - $15,500.00 annually; and
WHEREAS,Panama Equipment installed the generator at 549 4th Street and is the installer
for the new generator at 501 Procter Street. Panama Equipment is familiar with the pre-owned
diesel generator installed at 549 4th Street and has satisfactorily performed the preventative
maintenance on the equipment thus far; and
WHEREAS, at their December 4, 2023, Board Meeting, the PAEDC Board of Directors
approved acceptance of a quote and entering into a Service Agreement, Exhibit "B", for the
preventative maintenance of the two generators servicing the EDC buildings located at 501 Procter
Street and 549 4th Street in the amount not to exceed $11,876.94.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the City Council authorizes PAEDC to accept a quote and enter into a
Service Agreement with Panama Equipment of Cleveland,Texas for the preventative maintenance
of the two generators servicing the EDC buildings located at 501 Procter Street and 549 4th Street
in the amount not to exceed $11,876.94.
Section 3. That a copy of the caption of this Resolution be spread upon the Minutes of the
City Council.
READ,ADOPTED AND APPROVED on this day of A.D., 2023,
at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES:
Mayor
Councilmembers
or
NOES:
Thurman Bartle, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED:
Terry Stokes, PAEDC CEO
APPROVED AS TO FORM:
.E14.
Charles E. Zech, PAEDC Attorney
APPROVED AS TO FORM:
Val Tizeno, City Attorney
APPROVED AS TO AVAILABILITY OF FUNDS:
Or' ; 2 LLL1
Lynda I oswell, Finance Director
Exhibit "A"
Krystle Villarreal
From: Caleb Malveaux
Sent: Thursday, November 9, 2023 4:26 PM
To: Krystle Villarreal
Subject: FW: PM for generators
From:josh<josh@aaelectricbmt.com>
Sent: Monday, November 6, 2023 4:12 PM
To:Caleb Malveaux<cmalveaux@paedc.org>
Subject: PM for generators
Caleb,
For the building 549 4th St.which will include the following below will be 4950.00 per year
Included is 1 annual major PM, 3 minor PM's,as well as 8 additional monthly crank visits.
Included in major pm is:
Change 18 gallons of oil, 2 oil filters,2 fuel filters, 2 coolant filters, 2 air filters,check coolant level,check battery voltage,
check output voltage,transfer test and run generator for an hour.
Included in minor pm is:
Check fluid level,check battery voltage, check output voltage,transfer test and run generator for an hour.
Included in 8 additional cranks is:
run generator for 30 minutes
Coolant flushes as needed for additional charges.since we do testing on coolant and use high quality coolants these
times vary from 4 to 7 year.
There is no surcharge on fuel except what is billed to us from Suncoast since we do not have to be on site when they fill
the unit. But we will be happy to coordinate with them to have the unit filled as needed.
For the building 501 Proctor St. which will include the following below will be 2950.00 per year. Included is 1 annual
major PM and 2 minor PM's.
Included in major pm is:
Change 4 gallons of oil, 1 oil filter, 1 coolant filter, 1 air filter,check coolant filter,check battery voltage,check output
voltages,transfer test, andirun generator for an hour.
Included in minor pm is:
Check fluid levels, Check battery voltage,check output voltage,transfer test, and run generator for an hour
Coolant flushes as needed for additional charges.since we do testing on coolant and use high quality coolants these
times vary from 4 to 7 year.
Formal contracts will be written and signed before work can commence
i •
PANAMA QUOTE
EQUIPMENT
Customer:City of Port Arthur DATE: November 26,2023
State:Texas
SCOPE OF WORK Press Building 5ooKW: SCOPE OF WORK Edc Building 2ooKw:
• One annual Major PM • One annual Major PM
Changel8 gallons oil Change 4 gallons oil
3 oil filters 1 oil filters
2 Fuel Filters 1 Coolant Filters
2 Coolant Filters 1 Air filters
2 Air filters Check Coolant level
Check Coolant level Check Battery voltage
Check Battery voltage Check Output voltage
Check Output voltage Run Generator for and hour and transfer
Run Generator for and hour and transfer power
power •Two Minor PPs
•Three Minor PM's Check fluid levels
Check fluid levels Check Battery voltage
Check Battery voltage Check Output voltage
Check Output voltage Run Generator for and hour and transfer
Run Generator for and hour and transfer power
power
•Eight Monthly Cranks
Run Generator for 30 Minutes every..\[onthlc a This quote pricing is quoted for a 3 year contract and
•Every Three to Five years for an additional charge change 30 Priority f Level Responsey to any call outs or Gereraror
outages
tofor day to day or Disaster.
gallons of coolant,2 coolant filters • Priority 1 Level Callouts will have a maximum 4 hour
• Fueling day to day is an added cost with a delivery fee of response time and a minimum 4 hour charge for each
$520.00,and Fuel at market cost per gallon plus$1.40 per call out at$105 dollars an hour.
PANAMA EQUIPMENT CUSTOMER CONTACT INFORMATION
CONTACT INFO.
Name: Name: Phone: Email:
Rene Trevino Krystal Villarreal Muller 409-963.0579 Kvillarreal-mullerl iDaedc.orq
Phone: Location Site ID Number Site Name:
2 81-6 87 504 5 Port Arthur Press Building
QUANTITY DESCRIPTION UNIT PRICE LINE TOTAL
1.0o Press Building 5ookw Major PM s 6,476.92 $ 6,476.92
3.0o Press Building 50o kwMinor PM $ 653.85 5 1,961.55
8.00 Press Buildin9 5ookw Monthly Crank s z62.54 $ 2,092.32
0.00 s
1.0o EDC building zookw Major PM s 823.o8 $ 823.08
2.00 EDC building zookw Minor PM s 261.54 5 523.08
o.00 $
Thank you for your business! TOTAL s a0,876.94
General—oualm<ationsfnadr a.;ons
rhsdocument contains confidential a.proprietary ormation its contents shall not be copiedor distr,b,nedtothrd parties without the express written permission of Panama Equipment LLC
PrePosel does not ins use any sate sales tax fexcePt...rector consumable maarialsl,gross receipt°,other raves for this yrofect.i responsible m isxe Me contractor and the
wbcoMraemrs•'cf..par parmieand m a«rueaM payarry state sates orod er tares for*is project.Buyer shall be respns.le for any tau,interest and penalty if suc n exemption certihcaa or direct ppayment
permit certificate i s disallowed by the pop ...authority.
poposell based on Me information provided by the customer end.owner or owners of legal record fdddfe rent,and includes installation of all materials and equipment es shown in the docu merits provided
as of the date of the proposal.
Work will be performed according to the drawings and information provided by the company be,quoted.
5. n k Equ
ipment LLC will not accept any responobOlity or charge for mod{iica,ons,repair,servicing,and ad,ustment or for pry other items without the authority in the form,a purchase order in advance of
doing the or
Panama LC shall not under any circumstance he responsible for any additional...any lox or perceived loss by the customer.Further, customer shall wave any rights to charge back or deduct
paymentsfrom any due Panama Equipment LLC,any fees or cost the c unorner may have incurred whereby Panama Equipment LLC did not directl approve uch fees or costs and was not in direct and complete
control.incurring such costs
,.Removal° y unidenhfied obstructions and a,associated delays a downtime due m same,will be considered as exta t°th p,op°al.
tinges to these drawings°,new dravongstnat are issued to Panama Equipment LLC at any time after Me submittal of our proposal will be considered an extra and priced accordingly m Change Order
Requests and submitted to al l parties imdved for review,approve,and budget increase before anywoh associated with these changes takes place.
q Our standard labor and equipment rates shall pplyforanyextrawork-
ao.Any delays andior work noppages notcaused by the direct result o{Panama Equipment LLC or its direct subcontractors shall be considered extra and billed at the cu,rentcontract rates.
..uponcomplebon of mrs pmlect,Panama Ewpmen t LLC w.11 provide all required documenobon and inspection reports
.a.ihis quote is valid for p days.
Quote
E T
Customer: s -�X
SETX Motorsports Port Arthur EDC ?
6378 FM 105 jo
Orange Tx,77630 Port Arthur,TX
(409) 550-1207 M O T O R S P O R T S
Quote#: 22835
Contact Phone# 409-282-1010
Contact Email cmalveaux@paedc.ora
Generac SD200 Natural Gas Generator
Services/Trips l ID Type of Work Per Service Cost Total cost
1 501 Proctor Street Full PM Annually 850.00 $850.00
2 501 Proctor Street 6 Month inspection 275.00 $550.00
$0.00
$1,400.00
500Kw Blue point Diesel Generator
Services ID Type of Work Per Service Cost Total cost
549 4th St Press
1 Building Full PM Annually 8150.00 $8,150.00
549 4th St Press
3 Building 6 Month inspection 850.00 $2,550.00
549 4th St Press
8 Building Monthly Cranks 425.00 $3,400.00
$14,100.00
Total for both Buildings $15,500.00
Notes:
Fueling is cost of fuel plus$1.70 a gallon and a delivery fee of$600.These cost will change during a storm
event if one is to occur. If there is a storm event Delivery Charge will change to$1200.
Exhibit " B"
SERVICE AGREEMENT FOR PREVENTATIVE MAINTENANCE AND
REPAIRS FOR PORT ARTHUR EDC 200 KW GENERATOR AND PRESS
BUILDING 500 KW GENERATOR
THIS AGREEMENT, made this _day of ,2023, between City of Port
Arthur EDC, a municipal corporation organized under the laws of the State of Texas, hereinafter
called "owner" or City and Panama Equipment LLC a Corporation hereinafter called
"Contractor".
WITNESSETH:That for and in consideration of the payments, terms, conditions, and agreements
set forth herein, OWNER and CONTRACTOR agree as follows:
1) The Port Arthur EDC operates two generators, (1) diesel 500 KW at 549 4th St. the Press
Building and (1) Natural Gas 200 KW at the Port Arthur EDC building at 501 Procter St.
which require semi-annual Preventative maintenance and repairs when required.
2) The Contractor Specializes in Generator servicing and repairs, which the contactor
agrees to perform as outlined in the service quote.
3) The term of the contract is for a three (3) year period option to renew for two (2)
additional one-year periods, subject each year to the mutual agreement of the parties.
Option to renew for two (2) additional years at the mutual agreement of both parties,
Panama Equipment reserves the right to increase parts and labor to fair market rates at
renewal.
4) The term "Contract Documents" means and includes the following:
1. Agreement
2. Proposal Scope of work
3. Proposal
5) This agreement shall be binding upon all parties hereto and their respective Heirs,
executors, administrators, successors, and assigns.
6) IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by
their duly authorized officials, this Agreement in (2 copies) each of which shall be
deemed an original on the date first written above.
Page 1 of 4
PROPOSAL SCOPE OF WORK
GENERATOR PREVENTIVE MAINTENANCE AND REPAIR
OBJECTIVE:
The intent is for Panama Equipment LLC to perform preventive maintenance (PM), Monthly
Cranks, and repairs to City of Port Arthur EDC owned Generators. Services rendered by Proposer
shall take place at either location address as recorded, (1) diesel 500 KW at 549 4th St. Port
Arthur, TX 77640 "The Press Building," and (1) Natural Gas 200 KW at 501 Procter St. Port
Arthur,TX 77640 "The Port Arthur EDC building."
Scope of Service:
Panama Equipment LLC to Provide Scheduled preventive maintenance (PM), repairs, Parts
acquisitions, and other associated services.
Preventive Maintenance:
500 KW Diesel Generator at 549 4th St. the Press Building
One annual Major PM:
Change 18 gallons of oil.
3 oil filters.
2 Fuel Filters.
2 Coolant Filters.
2 Air filters.
Check Coolant level.
Check Battery voltage.
Check Output voltage.
Run Generator for an hour and transfer power.
Page 2 of 4
Three Minor PM's:
Check fluid levels.
Check Battery voltage.
Check Output voltage.
Run Generator for an hour and transfer power.
Eight Monthly Cranks:
Run Generator for 30 Minutes every Monthly
Every Three to Five years for an additional charge change 30 gallons of coolant, 2 coolant filters.
Fueling day to day is an added cost with a delivery fee of$520.00, and Fuel at market cost per gallon plus
$1.40 per
One Natural Gas 200 KW at the Port Arthur EDC building at 501 Procter St.
One annual Major PM
Change 4 gallons of oil.
1 oil filters 1 Coolant Filters
1 Air filters
Check Coolant level.
Check Battery voltage.
Check Output voltage.
Run Generator for an hour and transfer power.
Two Minor PM's:
Check fluid levels.
Check Battery voltage.
Check Output voltage.
Run Generator for an hour and transfer.
This quote pricing is quoted for a 3-year contract and Priority 1 Level Response to any call outs or
Generator outages for day to day or Disaster.
Priority 1 Level Callouts will have a maximum 4-hour response time and a minimum 4-hour
charge for each call out at$105 dollars an hour.
Page 3 of 4
Year Cost
2024 $11,874.94
2025 $11,874.94
2026 $11,874.94
Total $35,624.82
Executed on the day of ,2023.
Owner:
CITY OF PORT ARTHUR EDC.
BY:
Print Name:
CONTRACTOR:
PANAMA EQUIPMENT LLC
By:
Rene Trevino, Account Manager
WITNESS:
Print Name:
Title:
Page 4 of 4