HomeMy WebLinkAboutA001 - Council Action Form dated April 22, 2025ITEM #:22
DATE:04-22-25
DEPT:ELEC
SUBJECT:BOILER TUBE SPRAY COATING AND RELATED SERVICES AND SUPPLY
CONTRACT FOR POWER PLANT - CONTRACT RENEWAL
COUNCIL ACTION FORM
BACKGROUND:
This contract is for a contractor to provide and install new boiler tube coating and surface
preparation at the City’s Power Plant. This coating has been found effective against the corrosive
wear on the boiler tubes. A majority of the boiler tube walls in Unit 8 do not have shop-applied coating
and require routine spray coatings to maintain protection. This contract addresses that routine
application of protective coating. Failure to maintain the coating will cause the boiler tubes to wear
much more quickly, resulting in premature failure and costly repairs.
On July 26, 2022, Council awarded a contract to Integrated Global Services, Inc., Richmond, VA, for
the Boiler Tube Spray Coating and Related Services and Supply 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 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.
The City Council should note that the labor rates which will be charged by Integrated Global Services,
Inc. will increase approximately 5% and the material rates will increase approximately 7%. A
comparison of rates is attached.
Staff finds these increases to be acceptable for the following reasons: 1) It has been very difficult to find
a tube spray coating contractor that understands the product and the precision needed to install the
coating. During the last five years, only two companies have been able to meet the specifications
required by the Power Plant: IGS and Whertec. Whertec recently closed, and IGS was the only bidder
for the most recent contract. 2) Staff has seen high labor and material price increases consistent with
IGS from many other vendor and service providers within the last few years.
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 $590,000 for these services. This
amount is expected to remain similar to the amount budgeted in the prior year. The coating applied in
recent years has performed well and is not expected to need annual reapplication to the same areas. The
budgeted funding will allow the entire areas requiring coating to be resurfaced approximately every six
years.
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ALTERNATIVES:
1. Approve the contract renewal with Integrated Global Services, Inc., Richmond, VA, for the Boiler
Tube Spray Coating and Related Services and Supply Contract for Power Plant for the one-year
period from July 1, 2025 through June 30, 2026 in an amount not-to-exceed $590,000.
2. Reject the renewal option and instruct staff to seek new competitive bids.
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 Tube Spray Coating Renewal 25-26.pdf
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DESCRIPTION
Supervisor $ 106.00 $ 159.00 $ 212.00 $ 111.00 $ 166.50 $ 222.00
Foreman $ 93.00 $ 139.50 $ 186.00 $ 97.00 $ 145.50 $ 194.00
Technician $ 90.00 $ 135.00 $ 180.00 $ 94.00 $ 141.00 $ 188.00
Team Leader $ 98.00 $ 147.00 $ 196.00 $ 102.00 $ 153.00 $ 204.00
Subsistence per day:
Travel per person:
Mileage:
Material Costs:
IGS 5470
Sand (Garnet)
IGS 6045E - 2-3 Mils
Safety Supplies
HVTS Consumables
Excalibur 3000
Complete HVAS (EA)
3rd party equip rental
Scaffolding Services
BOILER TUBE SPRAY CONTRACT
$4.00/mh
$6.00/mh
$270/shift
$460/shift
Cost plus 15%
Cost plus 15%
$120/lb
$.63/lb
$1.43/lb
$1,220/gal
PROPOSED 25/26
$263.00
$3,800.00
N/A
Rate sheet provided
$114.00/lb
$.59/lb
$1.35/lb
$1150.00/gal
24/25
$249.00
$3,606.00
N/A
Rate sheet provided
Misc. Tools and Equipment Rates
$3.70/mh
$5.60/mh
$250.00/day
$430.00/day
Cost plus 15%
Cost plus 15%
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