HomeMy WebLinkAboutA001 - Council Action Form dated May 27, 2025ITEM #:19
DATE:05-27-25
DEPT:ELEC
SUBJECT:BOTTLE EXCHANGE PROGRAM AND RELATED SERVICES FOR POWER
PLANT - CONTRACT RENEWAL
COUNCIL ACTION FORM
BACKGROUND:
Electric Services uses demineralized water for operations at the Power Plant and combustion
turbine site. Operating demineralizing equipment requires bottled gases and chemicals to
purify substantial quantities of water.
This contract consists of providing a bottle exchange service for a two-bed
demineralizer, strong acid cation and a strong base anion, and a bottle exchange mix-
bed demineralizer. In addition, this contract requires a mobile purification system to
batch-fill a 265,000-gallon de-ionized water tank for water injection at the combustion
turbine site, as well as a final mixed-bed polisher for that unit.
The contractor must provide this service on a 24-hour per day, seven day per week
schedule, including holidays.
The initial contract was awarded to MPW Industrial Water Services Inc., of Hebron, OH for the
Bottle Exchange Program and Related Services for Power Plant for materials and services
under the Council threshold. This contract included the option for the City to renew in one-year
increments for up to four additional years. The initial contract started on July 1, 2023. This is
the second renewal out of four possible renewal periods. For the renewal for FY 2025/26,
the contract amount not-to-exceed was increased to $90,000 to cover additional
services anticipated for the FY 2025/26 operating year.
Council should note the rates that will be charged by MPW Industrial Water Services
will increase an average of 3.5% for service and materials compared to last year.
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.
The approved FY 2025/26 Power Plant operating budget includes $90 ,000 for this
ser vice. Invoices will be based on contract rates for time and materials for services
actually performed.
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ALTERNATIVES:
1. Approve the contract renewal with MPW Industrial Water Services Inc., of Hebron, OH,
for the Bottle Exchange Program and Related Services for the Power Plant for the one-
year period from July 1, 2025, through June 30, 2026, in an amount not-to-exceed
$90,000.
2. Reject the renewal option and instruct staff to seek new competitive bids.
CITY MANAGER'S RECOMMENDED ACTION:
These materials and services are necessary to properly maintain and operate Power
Plant equipment. This contract would establish rates for services and materials and
provide for guaranteed availability, thereby setting in place known rates for service and
controlling the Plant’s costs. Funds will be expended only as work is required and in
accordance with approved invoices. Therefore, it is the recommendation of the City
Manager that the City Council adopt Alternative No. 1 as stated above.
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