Item 8- RCA: Mobile Demineralizer — original pdf

Backup

Posting Language ..Title Authorize an amendment to a contract for continued repair, servicing, and water treatment parts for the plant demineralizer system and as needed rental of a temporary mobile demineralizer unit for Austin Energy with MPW Industrial Services Group Inc. d/b/a MPW Industrial Water Services Inc. to increase the amount by $500,000 for a revised total contract amount not to exceed $1,150,720. Funding: $500,000 is available in the Operating Budget of Austin Energy. Funding for the remaining contract term is contingent upon available funding in future budgets. ..Body Lead Department Austin Financial Services. Client Department(s) Austin Energy. Fiscal Note Funding in the amount of $500,000 is available in the Fiscal Year 2025-2026 Operating Budget of Austin Energy. Funding for the remaining contract term is contingent upon available funding in future budgets. Procurement Language: Contract Amendment. MBE/WBE: This contract was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9C (Minority Owned and Women Owned Business Enterprise Procurement Program). For the goods and services required for this solicitation, there were no certified M/WBEs; therefore, no subcontracting goals were established. Prior Council Action: July 20, 2023 - Council approved a contract for mobile demineralizer rental and water treatment parts with MPW Industrial Services Group Inc. d/b/a MPW Industrial Water Services Inc. For More Information: Direct questions regarding this Recommendation for Council Action to Austin Financial Services - Central Procurement at FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Council Committee, Boards and Commission Action: January 12, 2026 - To be reviewed by the Electric Utility Commission. Additional Backup Information: This contract provides as-needed rental of a mobile demineralizer, repairs, related parts and services necessary to keep high-pressure boilers and gas turbines operational during periods of high-water usage or when on-site high-purity water systems experience failures. In summer 2025, Sand Hill Energy Center experienced a high- purity water emergency that could have resulted in a forced outage. This contract allowed Austin Energy to quickly secure the necessary equipment and maintain 600 MW of generation, avoiding regulatory exposure and significant financial impact.  Due to this unanticipated event, additional funding authorization is needed to continue the contract. The current demineralizer system is 22 years old and as a result, failures are occurring more frequently. The Item 8requested amendment will ensure funding authorization to ensure continued access to mobile demineralizers, repairs, and related parts and services until the end of the contract in 2028. This contract is necessary for Austin Energy to fulfill its routine needs as well as unanticipated events, such as an emergency event that occurred last summer. Contract Details: Contract Term Initial Term Optional Extension 1 Optional Extension 2 Optional Extension 3 Optional Extension 4 Proposed Amendment Total Length of Term Contract Authorization Requested Additional Authorization Revised Total Authorization 1 year 1 year 1 year 1 year 1 year $100,000 $100,000 $172,720 $178,000 $100,000 5 years $650,720 $500,000 $500,000 $100,000 $100,000 $172,720 $178,000 $100,000 $500,000 $1,150,720 Note: Contract Authorization amounts are based on the City’s estimated annual usage.