HomeMy WebLinkAboutA019 - Resolution approving contract renewal with TEI Construction Services Inc., of Duncan, SC, for Boiler Maintenance Services Contract for Power PlantITEM #:24
DATE:04-08-25
DEPT:ELEC
SUBJECT:BOILER MAINTENANCE SERVICES CONTRACT FOR POWER PLANT -
CONTRACT RENEWAL
COUNCIL ACTION FORM
BACKGROUND:
This contract consists of a variety of boiler and pressure vessel maintenance, including structural
steel and pressure vessel repair at the Power Plant. The contractor provides emergency service as
well as regularly planned repairs and services during scheduled outages.
On July 26, 2022, Council awarded a contract to TEI Construction Services, Inc., Duncan, SC, for the
Boiler Maintenance Services Contract for Power Plant. 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.
The City Council should note that the rates charged by TEI Construction Services, Inc. will
increase 3%, as indicated on their original bid document.
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. 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 $350,000 for these services.
ALTERNATIVES:
1. Approve the contract renewal with TEI Construction Services Inc., Duncan, SC, for Boiler
Maintenance Services Contract for Power Plant for the one-year period from July 1, 2025 through
June 30, 2026 in an amount not-to-exceed $350,000.
2. Reject the renewal option and instruct staff to seek new competitive bids.
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CITY MANAGER'S RECOMMENDED ACTION:
It is important to have a highly skilled company to perform maintenance services on the City’s
power plant boilers. These boilers operate at high temperatures and under high pressures. Work
may be scheduled or required under short notice conditions. Having a contract in place allows for
quick response time at a predetermined cost. Therefore, it is the recommendation of the City
Manager that the City Council adopt Alternative No. 1 as stated above.
ATTACHMENT(S):
Boiler Maintenance Pricing 25-26.pdf
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Hourly Rate
(ST)
Hourly Rate
(OT)
Hourly Rate
(ST)
Hourly Rate
(OT)
Journeyman $ 62.79 $ 90.03 $ 64.68 $ 92.73
Foreman $ 66.00 $ 94.83 $ 67.98 $ 97.68
General Foreman $ 101.87 $ 140.33 $ 104.92 $ 144.54
Superintendent $ 113.08 $ 157.14 $ 116.47 $ 161.85
Journeyman $ 62.79 $ 90.03 $ 64.68 $ 92.73
Foreman $ 66.00 $ 94.83 $ 67.98 $ 97.68
General Foreman $ 101.87 $ 140.33 $ 104.92 $ 144.54
Superintendent $ 113.08 $ 157.14 $ 116.47 $ 161.85
Journeyman $ 48.38 $ 68.41 $ 49.83 $ 70.46
Foreman N/A N/A N/A N/A
General Foreman N/A N/A N/A N/A
Superintendent N/A N/A N/A N/A
Journeyman $ 48.38 $ 68.41 $ 49.83 $ 70.46
Foreman N/A N/A N/A N/A
General Foreman N/A N/A N/A N/A
Superintendent N/A N/A N/A N/A
Journeyman $ 62.79 $ 90.03 $ 64.68 $ 92.73
Foreman $ 66.00 $ 94.83 $ 67.98 $ 97.68
General Foreman $ 101.87 $ 140.33 $ 104.92 $ 144.54
Superintendent $ 113.08 $ 157.14 $ 116.47 $ 161.85
Journeyman $ 62.79 $ 90.03 $ 64.68 $ 92.73
Foreman $ 66.00 $ 94.83 $ 67.98 $ 97.68
General Foreman $ 101.87 $ 140.33 $ 104.92 $ 144.54
Superintendent $ 113.08 $ 157.14 $ 116.47 $ 161.85
Journeyman $ 62.79 $ 90.03 $ 64.68 $ 92.73
Foreman $ 66.00 $ 94.83 $ 67.98 $ 97.68
General Foreman $ 101.87 $ 140.33 $ 104.92 $ 144.54
Superintendent $ 113.08 $ 157.14 $ 116.47 $ 161.85
Journeyman $ 62.79 $ 90.03 $ 64.68 $ 92.73
Foreman $ 66.00 $ 94.83 $ 67.98 $ 97.68
General Foreman $ 101.87 $ 140.33 $ 104.92 $ 144.54
Superintendent $ 113.08 $ 157.14 $ 116.47 $ 161.85
TRAVEL & SUBSISTENCE
receive any)
PROPOSED FY2025-26
IRS mileage rate 0.67/mile
RATE
TEiC subsistence paid 7 days per
week
Night Shift
Laborer:
Boilermaker:
Day Shift
DESCRIPTION
Boiler Maintenance Services
Contract for the Power Plant
Day Shift
Night Shift
Day Shift
Night Shift
Steamfitter:
Day Shift
Night Shift
Millwright:
Craft
DESCRIPTION
Subsistence:
$ 143.22 per day
$ 127.31 per day (laborers do not
receive any)
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