HomeMy WebLinkAbout~Master - Purchase of Power Plant Unit No. 8 Coal Mill Parts RESOLUTION NO. 10-241
RESOLUTION APPROVING CONTRACT FOR
PURCHASE OF POWER PLANT UNIT NO.8 COAL MILL PARTS
FOR THE CITY OF AMES
WHEREAS,this is for the purchase of mill parts needed for planned mill rebuilds associated with routine
maintenance and inventory replenishment for the Power Plant Unit No. 8 Coal Mills; and,
WHEREAS,the majority of the parts on this bid has a long lead time and are being purchased at this time
for the planned maintenance of the Coal Mills,and maintenance delays will be reduced significantly by having the
parts in stock at the Plant; and,
WHEREAS, of the $463,500 amount approved for FY 2009/10 Electric Production operating budget,
$187,741.48 has been spent,leaving$275,758.52 remaining; and,
WHEREAS,this is the third time these parts have gone out for bids without a contract being awarded,and
this is due primarily to exceptions taken by the single bidder to the City's terms and conditions each time bids were
solicited; and,
WHEREAS,it was determined that this third attempt to secure the needed parts would be issued through
a Request For Proposal(RFP),which would allow more flexibility in negotiation of mutually agreeable terms and
conditions; and,
WHEREAS,staff received competitive sealed proposals for the Unit No. 8 Coal Mill Parts from two firms,
and after evaluation, staff determined that one was non-responsive; and,
WHEREAS, the remaining firm, Babcock & Wilcox (B&W), submitted an RFP in the amount of
$212,968.36; and,
WHEREAS,despite reduced City terms and conditions on the RFP,B&W still took numerous exceptions
and inserted some modifications which it submitted along with its pricing; and,
WHEREAS, staff has reviewed the exceptions and modifications proposed by B&W and has determined
that it is worth the risk by agreeing to its proposed terms and conditions,because there are potentially far greater
risks for Electric Services, and impacts to the rate payers,if there are continued delays on ordering these parts or
if no agreement is reached and the parts are never ordered; and,
WHEREAS,another significant reason to accept these risks is to maintain the full generating capability of
the Power Plant as much as possible,which helps to protect the City from exposure to very expensive power pricing
and electric system reliability problems.
NOW,THEREFORE,BE IT RESOLVED by the City Council ofthe City ofAmes,Iowa,that the exceptions
and modifications to the terms and conditions of the City's Request for Proposal document submitted by Babcock
&Wilcox of Barberton,Ohio,are hereby agreed upon, and the award of contract for purchase of the Power Plant
Unit No. 8 Coal Mill Parts in the amount of$212,968.36,inclusive of sales tax,is hereby approved.
ADOPTED THIS 25'day of May,2010.
?:� A. o
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Davis
Seconded by: Mahayni
Voting aye: Davis,Goodman,Mahayni,Orazem,Wacha
Voting nay: None Absent: Larson
Resolution declared adopted and signed by the Mayor this 25"day of May,2010.