Title
Consider recommending that the Board of Directors approve Amendment No. 1 to the Agreement for Services with TCB Industrial, Inc., to increase the dollar amount by $265,000 for a total contract amount not-to-exceed $365,000 to refurbish Unit 2 for the Nacimiento Dam Hydroelectric Power Plant, and to provide power plant repair services as-needed; and authorize the General Manager to execute the amendment. (Staff Presenting: Manuel Saavedra)
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Finance Committee:
Consider recommending that the Board of Directors approve Amendment No. 1 to the Agreement for Services with TCB Industrial, Inc., to increase the dollar amount by $265,000 for a total contract amount not-to-exceed $365,000 to refurbish Unit 2 for the Nacimiento Dam Hydroelectric Power Plant, and to provide power plant repair services as-needed; and authorize the General Manager to execute the amendment.
SUMMARY/DISCUSSION:
On April 25, 2024, the Monterey County Water Resources Agency (Agency) entered into an Agreement for Services with TCB Industrial, Inc. (TCB), for an amount of $100,000 to refurbish the Nacimiento Dam hydroelectric power plant’s small generator (Unit 2).
On February 19, 2024, the generator for Unit 2 failed due to an electrical fault, testing results indicated an overhaul of the generator was required to restore working condition. In addition, the unit’s turbine has mechanical wear and impacting efficiency, the turbine was last overhauled in 2003. Cost estimates to repair both the generator and turbine were solicited to reduce mobilization costs and interruptions to power plant operations. Based on cost and experience criteria, TCB was selected to perform the overhaul work. This project is considered “maintenance work” and does not require a formal bidding process.
Due to the large capital cost and budgetary constraints, the completion of the scope of work was phased out in two budget years to spread the repair costs. Phase 1 was completed in FY 2023-2024, and Phase 2 is to be completed in FY 2024-2025.
• Phase 1: included the dismantling and removal of Unit 2 from the powerhouse and refurbishment of the generator. The cost to complete Phase 1 was $48,325.
• Phase 2: includes overhaul of the turbine, re-installation, and commissioning of Unit 2. Estimated cost to complete Phase 2 is $282,997.
The purpose of Amendment No. 1 is to increase the total contract amount by an additional $265,000 for a total amount not-to-exceed $365,000 to complete Phase 2 of the project, and to provide $33,678 for as-need electrical and mechanical repair services.
OTHER AGENCY INVOLVEMENT:
None.
FINANCING:
Funds for this amendment will be from Fund 130: Hydroelectric Plant Operations and Maintenance.
Prepared by: Manuel Saavedra, Associate Water Resources Engineer, (831) 755-4860
Approved by: Ara Azhderian, General Manager, (831) 755-4860
Attachments:
1. Amendment No. 1.
2. Original Agreement for Services.