HomeMy WebLinkAbout~Master - Change Order for Unit No. 7 Rotor RESOLUTION NO. 07-407
RESOLUTION APPROVING PROPOSED CHANGE ORDER
WITH COTTER TURBINE SERVICES REGARDING
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., 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, at the same time, it is the intent of staff to require an agreement with the contractor
(via a change order) to deduct costs associated with this testing and repair from the amount owed the
contractor under the general contract; and,
WHEREAS,the city attorney is exploring options to recover damages incurred by our rate payers
as a result of the contractor's actions
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that a
proposed change order with Cotter Turbine Services deducting from its contract the final payment made
under the Alstom Power, Inc., contract is hereby approved.
ADOPTED THIS 28t' day of August, 2007.
C�A�"-R.'--4 f 4.01*w av-
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 281h day of August, 2007.