Title
RESOLUTION AUTHORIZING A CONTRACT WITH PARSONS ELECTRIC LLC, FOR THE CONSTRUCTION OF THE DULUTH ENERGY SYSTEMS HOT WATER CONVERSION SYSTEM BALANCE OF PLANT ELECTRICAL UPGRADES IN AN AMOUNT NOT TO EXCEED $572,966.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are authorized to contract with Parsons Electric LLC, for the electrical upgrades to support the steam to hot water conversion system at the Duluth Energy Systems (DES) plant in an amount not to exceed $572,966, payable from fund 540-920-1499-5530 (Steam; Steam Department; Steam Non-Operating; Improvements Other Than Buildings).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a contract with Parsons Electric LLC for electrical upgrades to support the installation of a skid-built packaged steam converter system (SCS) in the DES Plant for an amount not to exceed $572,966.
Duluth Energy Systems is undergoing a conversion from a steam-based district energy distribution network to a hot water-based district energy network. The current once-through steam distribution network under Superior Street in downtown is being replaced with supply and return hot water piping. The SCS supplied and installed under a previous contract will handle steam and condensate to transfer heat from the steam system to the hot water system; returning the sub-cooled condensate back to the Plant’s atmospheric non-pressurized condensate surge tank. This contract covers electrical upgrades to power the SCS and provide a completed system.
Purchasing issued an Invitation for Bids on April 27, 2020 and received five responsive bids. The bid received from Parson Electric LLC was the lowest responsive bid.
Company Bid Total
Parsons Electric LLC $572,966
Hunt Electric Corp $654,000
Belknap Electric $691,125
Corval Constructors, Inc. $764,649
Benson Electric $797,000