HomeMy WebLinkAbout~Master - Authorization for use of unspent funds from Cooling Tower Replacement Project for the Power Plant Conversion Project RESOLUTION NO. 16-483
RESOLUTION AUTHORIZING USE OF UNSPENT FUNDS FROM COOLING
TOWER REPLACEMENT PROJECT FOR CONVERSION OF POWER PLANT FROM
COAL TO NATURAL GAS
FOR THE CITY OF AMES
WHEREAS, in November 2013, the City Council voted to convert the City's Power Plant
from coal to natural gas; and,
WHEREAS, on May 27, 2014, City Council awarded a contract to Sargent&Lundy,LLC,
of Chicago,Illinois,for engineering services for converting the City of Ames Power Plant from coal
to natural gas, and that contract was in the not-to-exceed amount of$1,995,000; and,
WHEREAS,the action being requested is to approve Change Order No.3 to this contract in
the amount of$154,000; and,
WHEREAS, additional engineering services, especially pertaining to construction
management, are required to complete the project due to the project schedule being extended by
approximately three months; and,
WHEREAS, three issues primarily and critically affected the schedule: 1) the control
room/DCS equipment room had to be re-bid, which caused a delay of about two months; 2) the
systems requiring conversion from PLC control to DCS control were much more difficult to convert
than anticipated; and, 3) the selection of a suitable refractory and the placement of the refractory
around Unit #8's natural bas burners was very challenging and took at least a month longer than
originally anticipated; and,
WHEREAS, because the work described was not included in the original specifications,
Change Orders No. 1 and 2 were approved by the Council in the amount of$2,569,000; and,
WHEREAS, with t his change order, the total costs for the engineering services for
converting the City's Power Plant from coal to natural gas within the project will be increased to
$4,718,000; and,
WHEREAS, overall the total project dollar amount committed to date is $17,546,475.14
(inclusive of this Change Order No. 3).
WHEREAS, approval of this Change Order will exceed the budget authorized for the
conversion of the power plant; and,
WHEREAS, therefore, unspent funds in the amount of$637,011 will be utilized from the
Cooling Tower Replacement project; and,
WHEREAS, those savings are available to cover this Change Order, and future Changes
Orders with other vendors that will likely result as this project is closed out.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that authorization to use $637,011 of unspent funds from the Cooling Tower Replacement project
to finance the Power Plant Conversion Project is hereby approved.
ADOPTED THIS 23rd day of August, 2016.
•`� �1Q/ A. tom• �i�+�.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Betcher
Seconded by: Nelson
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin,Nelson, Orazem
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 23rd day of August, 2016.