Title
Approval of Amendment No. 1 to Services Agreement No. AGR 25-925 with Andritz Hydro Corp. in the Amount of $663,720.70 to Authorize the Expenditure of Tariff Fees for Repairs to the Abiquiu Hydroelectric Plant Draft Tube and Approval of a Budget Revision 2027-22 in the amount of $87,190.00
Recommended Action
I move that Council approve Amendment No. 1 to Services Agreement No. AGR 25-925 with Andritz Hydro Corp. to incorporate tariff fees, increasing the base contract by $81,771.75 plus New Mexico Gross Receipts Tax (NMGRT) of $5,417.38, for a revised total contract amount of $663,720.70; and recommend Budget Revision 2027-22 in the amount of $87,190.00 (consisting of $81,771.75 base cost and $5,417.38 NMGRT, with minor rounding) to fund the remaining shortfall from the Electric Production fund reserves.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Council approve the motion as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities reviewed this request at their regular meeting on September 16, 2026 and recommends that Council approve the motion as presented.
Body
The existing draft tube on Unit #3 at the Abiquiu Hydroelectric Plant experienced significant wear due to cavitation created by the dissolved oxygen injection system. This injection system is required to force air into the discharge water to enhance downstream oxygen content and sustain aquatic life. However, the injection piping on the legacy draft tube was horizontally mounted on the inside, which obstructed the discharge flow and caused the severe cavitation that ultimately wore through the steel wall. To resolve this issue, the new draft tube design places the injection piping ring on the outside perimeter, eliminating the internal flow obstruction and preventing future cavitation on the inner wall.
The Board previously approved Services Agreement No. AGR 25-925 in the base amount of $538,500.00, plus...
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