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HomeMy WebLinkAbout~Master - Emergency purchase of test and repair service for Unit No. 7 Rotor RESOLUTION NO. 07-406 RESOLUTION APPROVING EMERGENCY PURCHASE OF TESTING AND REPAIR SERVICE FOR UNIT NO. 7 ROTOR FOR THE CITY OF AMES WHEREAS, Power Plant Unit No. 7 was taken out of service in February 2007 for needed maintenance, inspection, and overhaul, and during this process, several major repairs, including a rotor rewind, were identified; and, WHEREAS,the rotor was shipped to the contractor's designated subcontractor in Miami,Florida,for this service,and after apparent completion of this task,the rotor was shipped back to the City of Ames Power Plant for reinstallation and start-up testing on June 15, 2007; and, WHEREAS, during this start up, the turbine failed and experienced intolerable vibrations and was forced to be shut down; and, WHEREAS,at the advice of the contractor,the rotor was shipped back to the subcontractor in Miami for repairs,and since that time,the subcontractor has insisted that no defects have resulted from its work;and, WHEREAS,the general contractor has insisted that the error lies with the subcontractor and has failed to pay the subcontractor approximately$262,000 owed for the work; and, WHEREAS, the subcontractor has subsequently placed a lien on the City's rotor until receiving payment from the general contractor, Cotter Turbine Services; and, WHEREAS, staff has been urgently seeking a remedy since the cost to the utility has been approximately$30,000-$40,000 a day in excess energy costs during this dispute; and, WHEREAS,in order to force a solution,a preliminary agreement has been reached amongst the City, the general contractor, and the subcontractor, to have a third party test the rotor and present findings to all parties; and, WHEREAS, Alstom Power, Inc., has the only test facility in the country which can perform this testing service on the Unit No. 7 rotor,and the three goals of this agreement are to: 1)have the rotor released f n the mechanics lien applied to it in Florida; 2) diagnose the malfunction of the equipment as soon as possible; and, 3) proceed with the measures needed to repair and reinstall the rotor with as much speed as possible to protect the utility from further economic damages; and, WHEREAS, Alstom Power, Inc., will perform a series of simulated diagnostic tests on the rotor at its facilities in Virginia, and depending upon the reason for the rotor's failure, the City may contract with Alstom to make the needed repairs; and, WHEREAS,should the rotor pass the test at Alstom,then the rotor will be shipped back to the Power Plant for immediate reinstallation; and, WHEREAS, the estimated cost of this agreement is $100,000-$120,000. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the waiver of formal purchasing policies is hereby approved,and the emergency purchase of testing and possible repair services for Unit No. 7 Rotor is authorized with Alstom Power, Inc., of Midlothian, Virginia, in an amount not to exceed$120,000. ADOPTED THIS 28th day of August, 2007. C�'L�)R- UA-a& A. "iel. Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Mahayni Seconded by: Goodman Voting aye: Doll, Goodman, Larson, Mahayni, Popken, Rice Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 28th day of August, 2007.