of and Approach to the Scope of Work, and 4. Cost Proposal. The top 3 firms listed above were
invited to participate in interviews with the selection team. Based on their experience and
expertise as well as competitive cost proposal, the team unanimously selected Essex Power
Services, Inc. and began contract negotiations.
Essex Power Services has been providing operation and maintenance services for the City at the
Jackson Mills facility for the past 2 years and was leasing this facility prior to City ownership.
Therefore, they have unique expertise and institutional knowledge to operate this facility.
Furthermore, we have been very pleased with the services provided and performance of this
contractor over the past 2 years. They are very qualified to take over operation and maintenance
at Mine Falls once it is under City ownership. They have also been a valuable partner in helping
the City navigate the technical aspects of operating a hydro facility.
The negotiated contract fee includes 3 components: staff time, third party expenses, and an
administrative fee. Staff time will be invoiced at a rate of $30 to $150 per hour depending on
position, with the majority of the work performed by assistant operators ($30/h) and operators
($50/h). Third party invoices will be billed at cost to cover parts, materials, and services not
provided by Essex. The administrative fee is 10% of gross revenue for the project for the first
20,000,000 kWh generated and 20% of gross revenues associated with generation above that.
With this cost structure, it is estimated that the City would incur $298,200 for staff time and
administrative fees and an additional $100,000 in third party costs, for a total of $398,200 in
operating costs for both facilities under this contract in FY18. Total anticipated revenues are
$1,382,000 for both facilities with a net profit of $952,430 ($292,000 at Jackson Mills and
$660,690 at Mine Falls) for FY18.
The Waterways Department recommends Essex Power Services Inc. as the vendor to provide
operation and maintenance service for the Jackson Mills and Mine Falls hydroelectric facilities.
