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HomeMy WebLinkAbout~Master - Authorizing Additional Repairs to the Water Pollution Control Facility Methane Engine Generator No. 2 RESOLUTION NO. 21-392 RESOLUTION AUTHORIZING ADDITIONAL REPAIRS TO THE WATER POLLUTION CONTROL FACILITY METHANE ENGINE GENERATOR NO. 2 FOR THE CITY OF AMES,IOWA WHEREAS,the Water Pollution Control(WPC)Facility recently replaced one of its methane engine generators(MG#1)with a boiler, and as part of the project,the Waldinger Corporation,the general contractor,was also tasked with upgrading the controls on the two remaining methane engine generators (MG#2 and MG#3); and, WHEREAS, on January 12, 2021, a catastrophic event occurred to MG #2 making it no longer operable; and, WHEREAS, during the controls upgrade, a subcontractor to Waldinger was observed multiple times operating the MG #2 engine without first notifying City staff as required by the Contract; and, WHEREAS,there were several events that occurred when the engine was under the control of the subcontractor that staff believes were a direct cause of the failure of MG#2; and, WHEREAS, staff has attempted to resolve the issues with the general contractor and get repairs made at no cost to the City;however the general contractor and its subcontractor do not agree that the repairs are their responsibility; and, WHEREAS, the damage claim will take time to resolve and delaying the repair will result in ongoing electrical demand charges from the rural cooperative that serves WPC; and, WHEREAS, staff utilized the rapid needs procurement process allowed by the City's Purchasing Policies and Procedures and directed Interstate PowerSystems to begin repairs on the engine; and, WHEREAS, Interstate PowerSystems was already under contract for routine maintenance on the standby engine at WPC, and the company has a track record of being very cost-competitive on this type of engine work; and, WHEREAS,Interstate PowerSystems initially determined that two of the engine's cylinders were damaged and need to be repaired; and, WHEREAS, the original repair costs of $24,253 were able to be approved using the departments purchasing authority, but during the repairs, additional damaged components were discovered which required a cost increase of$7,070; and, WHEREAS, this increase pushed the total dollar amount over the Departmental threshold and the cost increase was approved by the City Manager's Office; and, WHEREAS,after making the repairs to the two damaged cylinders,an operational check of the engine was performed before placing it back in service; and, WHEREAS, it was discovered that two additional cylinders would not pass a compression test and required additional repair work; and, WHEREAS, Interstate PowerSystems has proposed repairs to the two additional defective cylinders for $22,264; and, WHEREAS,the funding for the repairs will be from the Capital Improvement Program(CIP) budget for the Methane Engine Generator Replacement Project; and, WHEREAS, it is the opinion of staff and Interstate PowerSystems that the damage appears to be catastrophic in nature, and not simply "old age" failure as Waldinger's subcontractor is asserting; and, WHEREAS, staff believes the damage is a result of the contractor's negligent operation of the equipment in a manner that was contrary to the requirements of the specifications; and, WHEREAS,WPC staff is working with the City Attorney to pursue a damage claim against the general contractor and staff is withholding payment to Waldinger in an amount equal to the total damages caused by the contractor(estimated to be in the $150,000+/-range for the engine damage and the increased engineering and utilities costs resulting from the inoperable engine since January) plus the normal five percent retainage and twice the value of the remaining uncompleted punch list work. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the authorization of additional repairs to the Water Pollution Control Facility Methane Engine No. 2 by Interstate PowerSystems of Altoona, Iowa, in the additional amount of$22,264 is hereby approved. ADOPTED THIS 13t'' day of July, 2021. Diane R. Voss, City Clerk John A. Haila, Mayor Introduced by: Corrieri Seconded by: Betcher Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 13t'day of July, 2021.