Title
Approval of Service Agreement AGR17-938 with Voith Hydro, Inc. for Field Services and Approval of Purchase of Mechanical Components from Voith Hydro, Inc, both for the Repair of the El Vado Hydroelectric Plant Shaft Seal
Recommended Action
I move that the Board of Public Utilities Approve Service Agreement AGR17-938 with Voith Hydro, Inc. for Field Services in the amount of $120,000.00, plus applicable gross receipts tax, in a form acceptable to the County Attorney. I further move that the Board of Public Utilities authorize the Utility Manager to approve Proposal MB2-437 from Voith Hydro, Inc. for purchase of Mechanical Components for Repair of the El Vado Hydroelectric Plant Shaft Seal in the amount of $52,117.00, plus applicable gross receipts tax.
Staff Recommendation
Staff recommends that the Board approve as presented.
Body
In May 2016, during the final commissioning of the refurbished El Vado turbine and generator, the turbine shaft seal experienced excessive leakage. Commissioning was terminated as the leakage overwhelmed the unit's head cover pumps leading to the unit's shutdown due to head cover flooding. Since that time the contractor and the county have been in dispute as to which party is responsible for the repair of the shaft seal. Per the contractual dispute resolution process, the contractor has appealed to the County purchasing agent which resulted in the County purchasing agent concluding the responsibility for the repair is the contractors. The contractor appealed the purchasing agent's decision to the Los Alamos County County. On November 9-10, 2016, hearings were held in front of the County Council to hear the contractor's appeal. The council concluded that the contract entered into between the contractor and Los Alamos County is a performance contract, and the County assessing liquidated damages or the County debarring the contractor were not appropriate at that time. The council direction was to have the parties attempt ...
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