STATEMENT OF ISSUE
To support reliable and efficient operations of the generating units at the City’s power plant facilities, the plants need to periodically perform cleaning of the brine concentrator at the Sam O. Purdom Generating Station and boilers at both the Purdom and Hopkins Generating Stations. Following a competitive solicitation, contract 1196 was executed with Veolia Environmental Services (formerly known as Onyx Industrial Services, Inc.) for a three-year term contract for these services. The initial term will expire in March of 2009. The contract allows for one two-year extension period. This agenda item is seeking approval to extend the contract for one two-year period and amend the contract to reflect the extension period.

RECOMMENDED ACTION

Option 1: Approve extension of Contract 1196 with Veolia Environmental Services for power plant brine concentrator and boiler chemical cleaning and hydro-blasting services for one two-year period.

FISCAL IMPACT

Option 1: None at this time
There is no guaranteed work associated with the term contracts. Work is funded from approved capital and operating budgets at the time the work is identified.

Kevin G. Wailes, General Manager – Electric Utility

Anita Favors Thompson, City Manager

For information, please contact: Rob McGarrah, Manager Power Production, x 5534

SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS
HISTORY/FACTS & ISSUES

1. To support reliable and efficient operations of the generating units at the City’s power plant facilities, the plants need to periodically perform cleaning of the brine concentrator at the Sam O. Purdom Generating Station and boilers at both the Purdom and Hopkins Generating Stations.

2. Following a competitive solicitation, contract 1196 was executed on March 15, 2006, with Veolia Environmental Services (formerly known as Onyx Industrial Services, Inc.) for a three-year term contract for these services.

3. There is a provision in the contract that permits the contract to be extended for one two-year period with an economic price adjustment. The rates are to be adjusted upward or downward based on the consumer price index and are to become effective in the fourth year for years four and five.

4. The power plant management and the vendor have indicated their concurrence to extending the contract.

5. Procurement Services and Budget and Policy have reviewed this agenda item and concur that it meets purchasing and budget guidelines.

CHARITABLE CONTRIBUTIONS

1. Charitable Contribution language was not included in the original solicitation 0007R-06-RM-TC, which was approved by the City Commission on January 11, 2006.

2. Subsequent to renewal, the City Purchasing Division requested the vendor to provide any contributions made during the contract term. No contributions were provided.

OPTIONS

Option 1: Approve extension of Contract 1196 with Veolia Environmental Services for power plant brine concentrator and boiler chemical cleaning and hydro-blasting services for one two-year period.

Option 2: Do not approve extension of Contract 1196 with Veolia Environmental Services and direct staff to bid these services out in order that a new term contract can be executed.

Option 3: Do not approve extension of Contract 1196 and direct staff to obtain quotes each time services are needed.

FISCAL IMPACT

Option 1: None at this time
There is no guaranteed work associated with the term contracts. Work is funded from approved capital and operating budgets at the time the work is identified.

Option 2: Unquantifiable until direction is provided.
This option is not recommended. These services are specialized and the number of vendors that can provide these services is limited.

Option 3: Unquantifiable.
This option is not recommended. Since these services are repetitive the use of term contracts is the most effective method to obtain these services.

ATTACHMENTS/REFERENCES
None.