Title
Resolution to Approve Change Order No. 1 with Kiser Hydro LLC for Barton Dam Hydroturbine Project and Appropriate Funds ($151,260.63) (8 Votes Required)
Memorandum
This memorandum and resolution requests approval to approve a change order with Kiser Hydro LLC (Kiser) for the Barton Dam hydroturbine: 10-year Inspection and Overhaul - ITB #4467 ($151,260.63) and to appropriate the necessary funding.
Barton Dam is one of the two hydroelectric power generating facilities owned by the City of Ann Arbor (City). The Barton facility generates on average $280,000.00 per year in revenue for the City. The hydroturbine is the critical component of Barton Dam Hydroelectric facility and recommended operation and maintenance (O&M) practices call for rebuilding the turbine every 10 years. The last rebuild of the Barton Dam hydroturbine was in 2005 and the equipment was therefore overdue for this work.
The project was awarded to Kiser Hydro LLC in the amount of $542,858.00 as part of Resolution R-18-034 in February 2018. The scope of the project included disassembly, removal, rebuilding and reinstalling existing turbine parts, replacement of various mechanical components, and all related work. Critical components of the work include overhaul of the generator, rebuilding of the gearbox, replacing bearings, start-up, testing and commissioning.
In the original memorandum and resolution to Council (R-18-034) authorizing this work, it was noted that there was a risk of up to an additional $190,000.00 for repairs that could not be identified until the hydroturbine was disassembled and assessed. Disassembly of the turbine is now complete and the Contractor has identified additional items that are required to complete the turbine rebuild. The total cost for these additional repairs is $131,260.63, plus a contingency for $20,000.00.
If the additional repairs are not completed, the City risks that the hydroturbine would be placed back into service in a compromised co...
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