HomeMy WebLinkAboutA018 - Resolution approving contract renewal with Tri-City Electric Co for the Electrical Maintenance Services Contract for Power PlantITEM #:21
DATE:05-26-26
DEPT:ELEC
SUBJECT:ELECTRICAL MAINTENANCE SERVICES CONTRACT FOR
POWER PLANT - CONTRACT RENEWAL
COUNCIL ACTION FORM
BACKGROUND:
Electric Services’ two high-pressure steam turbine electric generating units within the Power
Plant are referred to as Unit No. 7 and Unit No. 8. These units require regular professional
maintenance and repair. T his contract consists of emergency service as well as regularly
planned repairs and services during scheduled outages. The repair of these generating
units requires professional trade crafts such as boilermakers, electricians/control techs,
steam/pipe fitters, and millwrights, to list a few. The units operate under environmental
conditions with high heat and high pressure.
Due to these operational conditions, numerous circuit breakers, relays and electrical
circuits are necessary to safely and reliably operate the Power Plant. All of this
equipment must be professionally maintained, serviced, adjusted, repaired, and rebuilt.
Specially trained personnel must perform this work.
On May 9, 2023, Ames City Council awarded a contract to Tri-City Electric Company of Iowa,
Davenport, IA, for the Electrical Maintenance Services Contract for Power Plant. The contract
includes an option that would allow the City to renew the contract for up to four additional one-
year terms. This is the third of four additional renewal contract periods. The City Council
should note that the rates which will be charged by Tri-City Electric Company of Iowa
will increase by 3%, as indicated in their 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.
The approved FY 2026/27 operating budget for Electric Production includes $110,000
for relay and breaker maintenance. Actual expenses will be based on services provided and
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invoiced during the term of the renewal.
ALTERNATIVES:
1. Approve the contract renewal with Tri-City Electric Company of Iowa, Davenport, IA, for
the Electrical Maintenance Services Contract for Power Plant for the one-year period
from July 1, 2026 through June 30, 2027 in an amount not-to-exceed $110,000.
2. Reject the renewal option and instruct staff to seek new competitive bids.
CITY MANAGER'S RECOMMENDED ACTION:
This work is necessary to properly maintain relays, circuit breakers and electrical
circuits and to carry out emergency and scheduled repairs resulting from equipment
failures. This contract would establish competitive rates for service and provide for
guaranteed availability, thereby setting in place known rates for service and controlling
the Plant’s costs. Therefore, it is the recommendation of the City Manager that the City
Council adopt Alternative No. 1 as stated above.
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