Title
RESOLUTION AUTHORIZING A CONTRACT WITH NORTHERN HORIZONS SOLWAY, INC., FOR A STEAM CONVERTER SYSTEM IN AN AMOUNT NOT TO EXCEED $2,220,426.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are authorized to contract with Northern Horizons Solway, Inc., for a steam converter system in an amount not to exceed $2,220,426, 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 Northern Horizons Solway, Inc. for the construction and installation of a skid-built packaged steam converter system (SCS) in the DES Plant for an amount not to exceed $2,220,426.
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 this 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.
Purchasing issued an Invitation for Bids on September 30, 2019 and received only one bid.