Title
Approve Amendment No. 3 to the Agreement for Services with TCB Industrial, Inc., to increase the dollar amount by $175,000 for a total contract amount not-to-exceed $815,000 to provide diagnostic evaluation and repairs to the Unit 1 hydraulic controls system and to continue providing as needed maintenance and repair services for the Nacimiento Dam Hydroelectric Power Plant; and authorize the General Manager to execute the Amendment. (Staff: Manuel Saavedra)
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Directors:
Approve Amendment No. 3 to the Agreement for Services with TCB Industrial, Inc., to increase the dollar amount by $175,000 for a total contract amount not-to-exceed $815,000 to provide diagnostic evaluation and repairs to the Unit 1 hydraulic controls system and to continue providing as needed maintenance and repair services for the Nacimiento Dam Hydroelectric Power Plant; and authorize the General Manager to execute the Amendment.
SUMMARY/DISCUSSION:
On April 25, 2024, the Monterey County Water Resources Agency entered into a three-year term Agreement for Services (Agreement) with TCB Industrial in the amount of $100,000 to partially fund the refurbishment of Unit 2 and to provide as needed repair services for the Power Plant.
In September 2024, the Board of Directors approved Amendment No.1, increasing the Agreement by $265,000 for the overhaul of the Unit 2 generator and turbine. The Board subsequently approved Amendment No. 2, adding $275,000 for the replacement of the Power Plant’s cooling coils, preventive maintenance on Unit 1, and continued as needed maintenance and repair services.
On September 21, 2026, during a PG&E power outage event, the Power Plant operator observed that Unit 1 required an abnormally long time to complete its shutdown sequence following a trip event. Preliminary evaluation indicates a potential issue with the hydraulic controls system. Additional inspection by a contractor specializing in mechanical system repairs (i.e., TCB Industrial) is needed to perform diagnostic troubleshooting and complete the necessary hydraulic control repairs. Amendment No. 3 will fund the hydraulic control system diagnostic work and repairs and support future as needed repair services to maintain operational reliability of the Power Plant.
OTHER AGENCY INVOLVEMENT:
None.
FINANCING:
Amendment No. 3 is financed from hydroelectric power sales revenue in Fund 1508. Sufficient appropriations in Fund 1508 are included in the FY2025-26 Adopted Budget to pay for this amendment.
Prepared by: Manuel Saavedra, Associate Water Resources Engineer, (831) 755-4860
Approved by: Ara Azhderian, General Manager, (831) 755-4860
Attachments:
1. Original Agreement for Services.
2. Amendment No. 1.
3. Amendment No. 2.
4. Amendment No. 3.