Item Coversheet
City of Independence
AGENDA ITEM COVER SHEET
BILL NO. 22-510Ord.No:          19402

Agenda Title:

22-510 - 1R.  An ordinance authorizing issuance of a purchase order to General Electric (GE) for the emergent repairs of Combustion Turbine H5 for $1,999,647.27; authorizing future change orders not to exceed $199,964.70; and appropriating $2,199,611.97 from the Power & Light Reserve Fund Balance to fund this repair, and declaring an emergency.
Recommendations:

IPL recommends approval of a Purchase Order to General Electric (GE) for the investigation and repair of a vibration in the compressor and combustion section of the H5 Turbine.
Executive Summary:

Combustion Turbine H5 is one of our most productive units located with the Independence footprint.  Following repairs to the generator, the unit has been unable to start up due to a vibration in the turbine section.  Coordinated examinations with GE have been unable to locate the source of the vibration.  A more extensive investigation, including disassembly and inspection or the turbine, is required with the expertise GE brings as the equipment manufacturer.
Previous Activity:

November 14, 2022 City Council Work Session: Presentation

November 17, 2022 PUAB: Recommended approval

Background:

A generator fault in 2021 resulted in a complete rewind of the generator by GE.  Due to delays in the repairs, the unit was out of service for more than a year.  Follow-up testing was satisfactory on the generator but revealed an unknown vibration that prevents the unit from being operated.  GE worked closely with IPL staff to use all locally available means to identify the source of the vibration.  The next step is to disassemble the turbine for closer inspection by GE, identify and correct the source of the vibration.
Emergency Justification:

Repairs must be scheduled with GE as soon as possible.  No date can be set until a Purchase Order is issued and remaining date availability for 2022 is very limited.  Delay for a second reading will result in postponing repairs until an undetermined time in 2023 and will result in cost escalation for labor/transportation.  


Fiscal Impact:

The fiscal impact to the City is $2,199,611.97.  Department is requesting an appropriation transfer from Power & Light’s reserve fund balance for this emergent repair.  This will be a new appropriation separate from the approved Power & Light's Capital Improvement FY23 budget



Department:          IPLContact Person:          Jim Nail


REVIEWERS:
DepartmentAction
Power and Light DepartmentApproved
Finance DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:         

ATTACHMENTS:
DescriptionType
OrdinanceOrdinance
H5 Turbine Rotor Emergent Work - GE Gas Power - Nov 22Backup Material
1622430-Rev2 IPL Blue Valley Fr 5 Unit H-5 MI ProposalBackup Material
6064699 Rev2 IPL Blue Valley Fr 5 Unit H-5 Parts Quote 1Backup Material
6065521 Rev2 IPL Blue Valley Fr 5 Unit H-5 Parts Quote 2Backup Material
20221117 Limited Source Form - GE Gas PowerBackup Material