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HomeMy WebLinkAbout~Master - Date Changes for the Unit 7 Boiler Repair Project RESOLUTION NO. 18-641 RESOLUTION APPROVING THE DATE CHANGES FOR THE UNIT 7 BOILER REPAIR PROJECT FOR THE CITY OF AMES WHEREAS, this project, which has been planned for several years, is to repair the Unit 7 boiler by the following actions: • Replacing the boiler tubes in the lower waterwall section of the boiler • Replacing all the pendant tubes in the superheat section • Reinsulating the steam and mud drums • Replacing the insulation and lagging (the aluminum skin)that covers the boiler WHEREAS,the Unit 7 boiler is one of two primary boilers at the City's Steam Electric Plant, and is now 50 years old and the boiler is in critical need of tube repairs; and, WHEREAS, as a result of boiler tube failures,Unit 7 has been off-line since early this year and with Unit 8 also experiencing frequent boiler tube issues, it is critical that this Unit 7 project proceed so that the Steam Electric Plan can be available and reliable to serve the electrical requirements of the City, and continue to burn refuse derived fuel; and, WHEREAS,afer switching from coal to natural gas in 2016,staff found that the boiler tubes were deteriorating due to corrosion at an accelerated pace,especially in the high temperature zones of the superheater; and, WHEREAS, for this project, the outer surfaces of the new replacement tubes for both the waterwall and superheater sections of Unit 7 boiler will be overlaid or clad with alloy to prevent or mitigate the corrosive attack upon the tubes; and, WHEREAS,based upon earlier engineering estimates,the approved Capital Improvements Plan includes the funding of$5,830,946 for the Unit 7 boiler repair; and, WHEREAS,when the City Council approved the plans and specifications,that the funding included in the CIP is inadequate to accomplish these repairs, and the updated engineer's cost estimate is $8,400,000; and, WHEREAS, the major cost increase stems from recent experience with similar tube issues in Unit 8 and has not become clear that burning natural gas with RDF leads to tube wastage in the higher portions of the boiler, specifically in the superheater section; and, WHEREAS, with the engineer's estimate significantly higher than the funding included in the CIP, staff might need to evaluate delaying or eliminating other future capital projects to make up the difference; and, WHEREAS,on October 23,2018 the City Council approved plans and specifications for the Unit 7 boiler repair project and set December 19, 2018, as the bid due date and January 8, 2019, as the date of hearing and award of contract; and, WHEREAS,as a result of a plethora of technical questions posed by potential bidders during the scheduled pre-bid meeting on November 14,2018,and other site visits,along with the input from technical experts in exotic alloy manufacturing and the weld and laser application industries, it is necessary to extend the bid due date to allow the potential bidders time to fully comprehend the scope of work,and to line up supplies and subcontractors who can provide the materials and services required to perform the work; and, WHEREAS, staff believed it is in the City's best interest to extend the bid due date to allow interested bidders sufficient time to perform the necessary study and work to assemble a quality, comprehensive bid. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the date changes for the Unit 7 Boiler Repair Project and set Wednesday,January 16, 2019, as the bid due date and Tuesday,January 22,2019 as the date of heard and award of contract are hereby approved. ADOPTED THIS 11 th day of December, 2018. �_VdAU) CAU(A�t� - Diane R. Voss, City Clerk John A. Haila, Mayor Introduced by: Corrieri Seconded by: Betcher Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Martin,Nelson Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this I Ith day of December, 2018.