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Board retroactively approves emergency generator purchase after staff cites rental failures and high rental costs
Summary
The utility district retroactively authorized purchase of an emergency standby generator (TriMix Power Systems) after staff said the rented unit repeatedly failed and rental fees have totaled roughly $2.3 million; the measure passed with Chair Shirley Lanier voting no over procurement concerns.
The Riviera Beach Utility Special District on April 15 retroactively approved purchase of an emergency standby generator from TriMix Power Systems LLC, a purchase staff said was necessary because the rented backup generator repeatedly failed and rental alternatives were unavailable.
Director Joshua Neiman told the board the utility had rented the original generator since February 2019 and "to date, the utility has spent $2,300,000 on a rental generator, that has been sitting there month to month," at an advertised rental rate of $28,000 per month. Neiman said the rental unit recently failed and United Rentals could not provide a replacement of equivalent capacity, leaving the utility exposed during a forecast of heavy rain and potential outages.
Staff presented a retroactive resolution to approve purchase of a standby generator at an amount not to exceed $678,000 from TriMix Power Systems LLC and to transfer $670,000 from contingency to the capital account to pay for the unit. Neiman said the unit now on-site had been tested and carried a one-year/1,000-hour warranty and that, with proper maintenance, the unit could last about 20 years; staff estimated payback on the purchase versus continued renting in roughly 23 months.
Several board members expressed concern that staff purchased the unit prior to a formal procurement, noting prior direction months earlier to pursue purchase as opposed to continued renting. Chair Shirley Lanier said she had "heartburn" with the retroactive purchase and with the fact that the city previously paid nearly $1,000,000 for a used generator that could not be repurposed. Other board members said staff had sought alternatives and that lead times for a comparable new generator could be 18 months with prices from $1.2 million to $1.5 million.
The board voted to approve the retroactive purchase; the clerk recorded affirmative votes from four board members and a no vote from Chair Shirley Lanier. The resolution passed.
