Title
RESOLUTION AUTHORIZING THE SOLE SOURCE PURCHASE OF A NATURAL GAS REGULATOR STATION HEATER FROM NELSON TECHNOLOGIES FOR A TOTAL AMOUNT NOT TO EXCEED $339,366.55.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into an agreement with Nelson Technologies for a natural gas regulator station heater for a total amount not to exceed $339,366.55, payable from fund 520-500-1905-5533, UtilB-2204 (gas, Public Works and Utilities, capital (incl deprec/debt svc), capital improvements - revenue; utility projects budgeted, natural gas Great Lakes regulator station heater replacement 2024).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution will authorize the purchase of a natural gas regulator station heater for the Great Lakes regulator station from Nelson Technologies for a total amount not to exceed $339,366.55. The heater will replace the heater installed in 2003 that has limited capacity and required continual maintenance. It will work in series with the heater that was installed in 2019. Included in the quotation is the cost for retrofitting the heater installed in 2019 to enable both heaters to work in series, independently and troubleshooting from a remote location. This allows for more flexibility and reliability during periods of peak demand.
The heater necessary to fit with our existing equipment is a TERI brand heater manufactured by OGI Process Equipment (OGI). Nelson Technologies is OGI’s area representative for Duluth and is the only source from which we can procure the specific heater needed.