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HomeMy WebLinkAbout~Master - Power Plant Valve Maintenance Services Contract and Contract and Bond RESOLUTION NO. 23-345 RESOLUTION APPROVING CONTRACT RENEWAL AND BOND FOR VALVE MAINTENANCE,RELATED SERVICES,AND SUPPLIES CONTRACT FOR THE CITY OF AMES WHEREAS, the Electric Utility's two natural gas-fired, high-pressure steam generation units are referred to as Units No. 7 and 8. These units require regular professional maintenance and repair. This consists of emergency service, as well as regularly scheduled planned repairs and services during scheduled outages. Services include a variety of boiler and pressure vessel maintenance and repairs, structural steel, pump and piping work, and other miscellaneous mechanical Power Plant work; and, WHEREAS, due to these operational conditions, numerous valves are used to operate the Power Plant. These include isolation, control, check, relief and safety valves, which must be professionally repaired, tested, installed, replaced and maintained. Specially trained personnel perform this work; and, WHEREAS, on May 24, 2022, the City Council awarded the Valve Maintenance, Related Services, and Supplies Contract to Pioneer Industrial Corporation, Kansas City, Missouri. These services were to be furnished as requested from date of award through June 30,2023. This contract included the option for the City to renew in one-year increments for up to four additional years. This is the first renewal out of four possible renewal periods; and, WHEREAS, the rates that will be charged by Pioneer Industrial Corporation will increase 3% compared to the current year, as indicated on the bid document; and, WHEREAS, staff recommends that these services continue to be outsourced on an annual renewable contract basis. The benefits of having a contract for these services in place include the following: 1. Consistency of work and quality from a single contractor. 2. Reduction in the City's exposure to market forces regarding prices and availability for labor, travel, and supplies in preparation for a scheduled outage. 3. Rapid contractor mobilization to start emergency repairs, thus reducing generation downtime. 4. City staff time saving in obtaining quotes, evaluating bids, and preparing specifications and other procurement documentation. WHEREAS,the approved FY 2023/24 Power Plant operating budget includes $85,000 for this service. Invoices will be based on contract rates for time and materials for services actually performed; and, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the contract renewal and bond with Pioneer Industrial Corp,Kansas City,Missouri, for hourly rates and unit prices bid, in an amount not-to-exceed$85,000 is hereby approved. ADOPTED THIS 1 lth day of July, 2023. e4 W- 410e 4�� Renee Nall, City Clerk John A. Haila, Mayor Introduced by: Beatty-Hansen Seconded by: Corrieri Voting aye: Beatty-Hansen, Corrieri, Gartin, Junck, Rollins Voting nay: None Absent: Betcher Resolution declared adopted and signed by the Mayor this 1 lrh day of July, 2023.