HomeMy WebLinkAbout~Master - Waiving Bidding Requirements and Awarding a Contract for Unit 8 Air Heater Basket Replacement for the Power Plant RESOLUTION NO. 20-341
RESOLUTION WAIVING BIDDING REQUIREMENTS AND
AWARDING A CONTRACT FOR UNIT 8 AIR HEATER
BASKET REPLACEMENT FOR THE POWER PLANT
FOR THE CITY OF AMES,IOWA
WHEREAS, the Unit 8 boiler utilizes an air preheater to capture the heat in the exhaust as
and transfer the energy to the incoming combustion air to warm it to the temperature needed for
efficient combustion of the fuel; and,
WHEREAS, the rotary air heater is made of multiple baskets filled with their sandwiched
layers of steel that rotate between the exhaust and inlet air ducts, and in doing so, cools the exhaust
and warms the air; and,
WHEREAS,the Unit 8 cold-end baskets were last replaced in 2012,and over time the basket
material corrodes, deteriorates, and loses thermal efficiency, and,
WHEREAS,the corrosion of the cold-end baskets is likely accelerated due to the combustion
of natural gas and RDF(chloride gases),combined with the temperature of the gases at the cold end;
and,
WHEREAS, Black&Veatch was hired to prepare the specifications for the replacement of
the air heater baskets, and it was their recommendation to negotiate directly with the Air Preheater
Original Equipment Manufacter(OEM); and,
WHEREAS, Arvos Ljunstrom, LLC (OEM) has recommended using an epoxy coating on
the cold-end baskets, which would inhibit the corrosion resulting from the natural gas and RDF
combustion; and,
WHEREAS, installation will be completed prior to the start-up of Unit 8 after the boiler
superheater replacement project, and the baskets will be installed by using the Power Plant
Maintenance Services Contract; and,
WHEREAS,Arvos Ljunstrom,LLC,is the most practical and cost-effective provider for the
needed replacement baskets,and this will require a single-source purchasing arrangement with Arvos
Ljunstrom, LLC, which is why a waiver of the City's purchasing policy requirement for formal
bidding procedures is also needed; and,
WHEREAS, based on the expertise of Arvos Ljunstrom, LLC, with this type of repair, the
technicality of the work, and the unique modification being made to the baskets, both Black &
Veatch and staff believe the quoted price of$135,857.77 (inclusive of sales tax) to be reasonable;
and,
WHEREAS,funding for these repairs is available from the approved FY 2020/21 operating
budget under Unit 8 Auxiliary Equipment repairs.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the waiver of the City's purchasing policy requirement for formal bidding procedures for the
Unit 8 Air Basket Replacement for the Power Plant,and awarding a contract to Arvos Ljunstro,LLC,
of Wellsville,New York,in the amount of$135,857.77(inclusive of sales tax)is hereby approved.
ADOPTED THIS 23rd day of June, 2020.
Diane R. Voss, City Clerk John A. Haila, Mayor
Introduced by: Gartin
Seconded by: Betcher
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 23'day of June, 2020.