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HomeMy WebLinkAboutA016 - Resolution approving contract renewal with Wulfekuhle Injection & Pumping, of Peosta, IA, for Cell Maintenance Services for Electric Services (RDF ash), for the one-year periodITEM #:21 DATE:04-08-25 DEPT:ELEC SUBJECT:CELL MAINTENANCE SERVICES FOR ELECTRIC SERVICES CONTRACT RENEWAL COUNCIL ACTION FORM BACKGROUND: The Power Plant has an ash pond that serves as a settling pond where Refuse Derived Fuel sluiced ash (“RDF ash”) falls to the bottom and relatively clean water can be recycled to the Power Plant to transport additional ash from the bottom of the boilers. The ash pond also contains ash generated from the combustion of coal prior to the power plant’s conversion to natural gas (“coal ash”). The RDF ash is composed of inorganic materials in the fuel that do not burn and must be removed from the boilers to allow continual operation. Over time the RDF ash builds up on the bottom of the pond and reduces the available capacity of the pond. This ash must be regularly removed and piled, via excavating or dredging, to a location at the pond site that will allow for it to dry. The dried ash is later hauled to a landfill. Boone County Landfill (BCL) is the only landfill in the same solid waste planning area as the City. However, BCL has rejected taking the RDF ash and therefore the Power Plant must take it to Metro East Landfill located in Mitchellville, Iowa. On February 28, 2023, City Council awarded a contract to Wulfekuhle Injection & Pumping, Peosta, IA, for Ash Pond Cell Maintenance Services for the Electric Services. This contract included the option for the City to renew in one-year increments for up to four additional years. This is the third renewal out of four possible renewal periods. TASK FY24-25 Rates FY25-26 Rates Price Per Hour (digging & moving)$212.18 $218.55 $ amount per ton to haul $19.63 $20.22 Mobilization $2,652.25 $2,731.82 Council should note the rates that will be charged by Wulfekuhle Injection & Pumping will increase 3% compared to the current year. Staff is recommending 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. 1 4. Saved City staff time obtaining quotes, evaluating bids and preparing specifications and other procurement documentation. Invoices will be based on contract rates for time and materials for services actually received and accepted by the City. The FY 2025/26 operating budget includes $200,000 for these services. ALTERNATIVES: 1. Approve the contract renewal with Wulfekuhle Injection & Pumping, Peosta, IA, for Cell Maintenance Services for Electric Services for the one-year period from July 1, 2025 through June 30, 2026 in an amount not-to-exceed $200,000. 2. Reject the renewal option and instruct staff to seek new competitive bids. CITY MANAGER'S RECOMMENDED ACTION: The ash pond is an essential part of the RDF combustion process. Because the ash pond has a limited working area, the RDF ash must be excavated and removed to allow for the continued combustion of RDF. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative #1 as stated above. 2