HomeMy WebLinkAbout_ 4.5(a)--Unit 9 Hydroelectric Turbine Overhaul � � �' � � �
� � � ' � �' � � ' � ` CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: September 17,2024 FROM: Nick Zettel, Director of
ITEIVI NO. 4.5(a) Redding Electric I7tility
***APPROVED BY***
� ��. ; � _ �
v ��
��„ ����
�1c ct c, yrectc� �ii' e in� tri�ttt32ity �),�"?t�2� rS' �P�tt�,C�i ��t t� �3,'1C�t'2{}?
nzettel@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.5(a)--Unit 9 Hydroelectric Turbine Overhaul
Recommendation
Authorize and approve the following actions regarding Bid Schedule No. 5513, Inspection and
Overhaul of the Unit 9 Hydroelectric Turbine and Auxiliaries:
(1) Authorize an amount not to exceed �884,000 for Unit 9 Hydroelectric Turbine overhaul;
(2) Award Bid to Stephen's Mechanical Corporation in the amount not to exceed $844,000
($543,320.20 for overhaul services and $300,679.80 for potential replacement of
components);
(3) Authorize the City Manager, or designee, to execute change orders up to the total amount
of the project contingency to address unforeseen work items discovered during the
overhaul process; and
(4) Find that this project is categorically exempt from review under the California
Environmental Quality Act pursuant to Sections 15301 (Existing Facilities) and 15302
(Replacement or Reconstruction).
Fiscal Impact
Description Estimated
Cost
Overhaul Services- Stephen's Mechanical Corporation $543,320.20
Potential Replacement of Components(Equipment and Parts), $300 679.80
Including Contingency- Stephen's 1Vlechanical Corporation '
Other Ancillary Parts $40,000.00
TOTAL $884,000.00
Report to Redding City Council September 21, 2024
Re: 4.5(a)--Unit 9 Hydroelectric Turbine Overhaul Page 2
The contract cost of overhaul services is $543,320.20. The potential replacement cost of parts
and equipment components, including a contingency for unfareseen expenses and change orders,
is estimated at$300,679.80. Additionally, $40,000.00 is anticipated for ancillary parts that, while
not major components, are essential for the system's overall functionality. This brings the total
projected cost of the project to $884,000.00.
Redding Electric Utility (REU) initially budgeted $600,000 in Major Maintenance funds for this
Fiscal Year 2024-25 project, based on historical activity. However, due to inflationary pressures
and supply chain disruptions affecting major parts and equipment, the costs of industrial work
have significantly increased. The necessary funds for the project, including contingency and
additional work, are available within REU's Major Maintenance Fund. The replenishment and
adjustment of the Major Maintenance Fund and the funding plan will be addressed during the
Fiscal Year 2026-27 biennial budget. At that time, actual project expenditures will be reviewed
and considered.
AZternative Action
The City Council could choose to reject the proposed pricing, which would prevent the overhaul
and inspection of the Unit 9 Hydroelectric Turbine and Auxiliaries.
Backg�ound/Analysis
The City of Redding (City) owns and operates a 3.5-megawatt Vevey hydroelectric turbine
designated as Generating Unit 9. Unit 9 provides renewable energy to the City on a continuous
basis. The hydroelectric plant is located at the base of Whiskeytown Dam and consists of a
turbine, generator, penstock isolating valve, and an auxiliary oil system for hydraulics and
control oil. The turbine runs exclusively on water from Whiskeytown Lake and generates power
with no carbon footprint.
The hydroelectric plant has operated approximately 125,000 hours since the last overhaul.
Although the equipment is still operational, certain components such as the turbine shut-off valve
are exhibiting the beginning signs of failure. The continued delay of maintenance reflects an
increase in operational risk to equipment as internal parts wear over time.
If maintenance is postponed, the possibility of an unplanned or catastrophic failure increases.
Failure will result in the cost of equipment replacement as well as the cost of replacement power
during downtime. Cost associated with this scenario will be significantly higher than that of the
overhaul.
The bid review team evaluated two proposals submitted in response to RFP 5513 for technical
qualifications, schedule, and budget. Stephen's Mechanical Co�rporation's bid represents the best
overall value to the City as their proposal demonstrated they have the best understanding of the
project needs, the criticality of project timing, and the lowest cost, a11 of which reduce the
potential for change order requests during the overhaul process.
Report to Redding City Council September 21, 2024
Re: 4.5(a)--Unit 9 Hydroelectric Turbine Overhaul Page 3
Environmental Review
This project is providing major maintenance on an existing turbine at the Whiskeytown
hydrogeneration facility and, therefore, is categorically exempt from review under the California
Environmental Quality Act pursuant to Sections 15301 (Existing Facilities) and 15302
(Replacement or Reconstruction).
Council P�^iority/City Manager Goals
This is a routine operational item.
Attachments
^Attachment A-Final Proposal Rankings
ATTACHMENT A
FINA�PROPOSAL RANKINGS
MINIMUM PROPOSAL TECHNICAL COST EVALUATION TOTAL
RANK BIDDER COST REQUIREMENTS MET EVA�UATION SCORE SCORE
1 Stephen's Mechanical Inc $543,320.20 Yes 68.33 28 96.33
2 NMI $812,665.00 Yes 49.67 20.25 69.92
NA Ethos NA No NA NA NA