HomeMy WebLinkAboutA017 - Resolution approving contract renewal with Earth Services & Abatement for Asbestos Remediation and Related Services and Supply Contract at the Power Plant for the one-year periodITEM #:22
DATE:04-08-25
DEPT:ELEC
SUBJECT:ASBESTOS REMEDIATION AND RELATED SERVICES AND SUPPLY
CONTRACT FOR POWER PLANT
COUNCIL ACTION FORM
BACKGROUND:
This contract involves the removal and proper disposal of asbestos insulation at the Power Plant,
including Units 5 and 6 (both retired) and operating units 7 and 8. The two retired units and Unit 7
were primarily insulated with asbestos-type insulation when constructed. Unit 8 is considered “asbestos
free." In addition, there are other areas located in the Power Plant that have been insulated with
asbestos-type insulation, such as some of the building insulation and building heating system.
These services include removal and disposal of asbestos containing insulation, and the
remediation/encapsulation of identified areas or where an encapsulated surface is damaged.
Asbestos must be removed and disposed of per State and Federal regulations before retired
equipment can be physically removed. In addition, asbestos should be removed or encapsulated
where employees will be working.
The Power Plant benefits from having a service contract with a firm that provides routine and
emergency asbestos remediation services. The benefits include consistency of work and quality from a
single contractor, reduction in the City’s exposure to market forces regarding prices and availability for
labor, travel, and supplies in preparation for a scheduled outage, rapid contractor mobilization to start
emergency repairs, and reduced City staff time spent obtaining quotes, evaluating bids, and preparing
specifications and other procurement documentation.
On March 25, 2024, City Council awarded a contract to Earth Services & Abatement (ESA) LLC., Des
Moines, Iowa for the Asbestos Remediation and Related Services and Supply Contract. 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. The prices for FY 2025/26 will increase 3%
from the previous fiscal year.
The FY 2025/26 Power Plant operating budget includes $200,000 for asbestos removal. Invoices
will be based on contract rates for time and materials for services actually received.
ALTERNATIVES:
1. Approve the contract with Earth Services & Abatement for Asbestos Remediation and Related
Services and Supply Contract at the Power Plant for the one-year period from July 1, 2025
through June 30, 2026 in an amount not-to-exceed $200,000
2. Reject the bid and instruct staff to seek new competitive bids.
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CITY MANAGER'S RECOMMENDED ACTION:
Asbestos removal and encapsulation must be performed by an asbestos contractor that comes
with a clean safety record and experience that proves the contractor can be trusted and relied on
to perform remediation correctly and safely. Removal and encapsulation will be an on-going cost,
since most of the old equipment at the Power Plant was insulated with asbestos. This contract will
establish rates for service and provide for guaranteed availability, thereby setting in place known
rates for service. Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1 as stated above.
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