1995-217NOTE: AMENDED BY ORDINANCE NO. 96-095
ORDINANCE NO. 9 ~---~/9
AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR EMERGENCY
PURCHASES OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES IN
ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH
PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, state law and ordinance require that certain contracts
requiring an expenditure or payment by the City in an amount
exceeding $15,000 be by competitive bids, except in the case of
public calamity where it becomes necessary to act at once to
appropriate money to relieve the necessity of the citizens, or to
preserve the property of the city, or it is necessary to protect
the public health or safety of the citizens of the city, or in case
of unforeseen damage to public property, machinery or equipment;
and,
WHEREAS, the City Manager has recommended to the City Council
that it is necessary to purchase goods or services due to the
following emergency conditions outlined in the memorandum attached
hereto as Exhibit "A", incorporated herein by reference; NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the City Council hereby determines that there
is a public calamity that makes it necessary to act at once to
appropriate money to relieve the necessity of the citizens, or to
preserve the property of the city, or to protect the public health
of the citizens of the city, or to provide for unforeseen damage to
public property, machinery or equipment, and by reason thereof, the
following emergency purchases of materials, equipment, supplies or
services, as described in the "Purchase Orders" attached hereto,
are hereby approved:
PURCHASE
ORDER NUMBER VENDOR AMOUNT
60838 SIEMENS POWER CORPORATION $70,000.00
60839 GENERAL ELECTRIC COMPANY $40,500.00
SECTION II. That because of such emergency, the City Manager
or designated employee is hereby authorized to purchase the
materials, equipment, supplies or services as described in the
attached Purchase Orders and to make payment therefore in the
amounts therein stated, such emergency purchases being in
accordance with the provisions of state law exempting such
purchases by the City from the requirements of competitive bids.
SECTION III. That this ordinance shall become effective
immediately upon its passage and approval.
PASSED AND APPROVED this the ~day of~ 1995.
BOB CASTLEBERRY, M~ ~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
DATE: NOVEMBER 7, 1995
CITY COUNCIL REPORT
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: EMERGENCY PURCHASE ORDER #60838 TO SIEMENS POWER
CORPORATION IN THE AMOUNT OF $70,000.00
RECOMMENDATION: We recommend this purchase order to Siemens Power
Corporation be approved in the amount of $70,000.00.
SUMMARY: This emergency purchase order is for repairs to Electric Production
Steam Turbine Unit 5. The damage requiring repairs was not known until the unit
was opened and visual inspection was made. Telephone quotes for the repairs were
solicited from qualified bidders and Siemens was the lowest bidder for the specified
work.
The purchase order is considered an emergency to keep the repairs of Unit 5 on
schedule. Emergency Purchase orders are exempt from the bid process.
BACKGROUND: Purchase Order #60838, Memorandum from Jim Thune dated
October 31, 1995.
PROGRAMS ~ DEPARTMENTS OR GROUPS AFFECTED: Electric Production Division
FISCAL IMPACT: Funds for this expenditure are available in 1995-96 budget
account #610-101-1011-5130-8339.
Approved:
Name: Tom D. Shaw, C.P.M.
Title: Purchasing Agent
654 .AGENDA
City of Denton Utilities - Electric Production Div.
1701 ASpencer Road · Denton, Texas 76205 · (817) 383 ~ 7551 · Fax: (817) 383 - 7555
October 31, 1995
Tom Shaw
Purchasing Agent
City of Denton
Re: Request for emergency purchase order
Dear Tom:
Summary:
This request is for issue of two emergency purchase orders per requisitions 165732
and 165733, both require Council approval. The orders concern repairs to Unit Five
turbine. The turbine is undergoing a maior steam path inspection which requires
complete disassembly. Inspection has revealed considerable distress to the steam path
components which had not been anticipated. Repairs are necessary at this time to
restore machine integrity and reliability. Those repairs require lengthy welding and
machining processes. Work scopes and quotations have been developed. Siemens and
General Electric furnished low pricing for the specified work. This emergency request
has been made to expedite repairs. A normal bidding cycle for routine Council
authorization would extend the turbine outage well beyond the scheduled completion
period. Unit Five is the largest Denton unit. Availability of this unit is critical to
Texas Municipal Power Pool operations. Expediting the repair through emergency
purchase orders will minimize the negative impact to the outage schedule and
operations.
Details:
Upon disassembly of the Unit Five turbine, steam path damage was identified in
several stages of the rotating and stationary components. The damage was not
anticipated and was not funded in the purchase orders to Siemens or General Electric.
Subsequent work scope and repair estimates have been developed by those firms and
the orders have been processed accordingly to the low bids.
Repairs to be performed are detailed as follo,vs:
General Electric-
The 17th (L-0) stage of rotating blades are equipped with sacrificial stellight erosion
Tom Shaw
Page 2
October 31, 1995
shields. These shields incur the damage of turbine "wet" zone operation typical in the
last stages of the turbine and are by design replaceable. Replacement is recommended
when continued operation could result in damage to the parent blade material at
which time turbine blade failure would result. Funds were not included in the original
order since the extent of damage was unknown until the machine was opened for
inspection. Replacement of the shields totals $30,500. This represents savings ~vhen
compared to blade replacement cost estimated at $200-300,000 for material and
installation. Those costs do not include any provision for damages to the machine as
a result of a blade failure.
Erosion has also been identified on the 16th (L-1) stage tenon peening surface. The
leading tenons of two blade packages have eroded to the extent that repairs are
necessary to maintain shroud securement integrity. Repairs will include removal of
the two covers, reprofiling the blade tips to expose additional tenon, milling new
covers with pockets at the tenon and re-peening. This repair is also necessary to avoid
serious turbine damage which could result from blade failure. This repair totals
$5,000, compared to similar cost previously mentioned for blade failure.
Transportation costs to the GE service shop and miscellaneous contingency are
additionally funded by this order. This order totals $40,500.
Siemens Power Corporation-
Erosion identified in the turbine stationary diaphragms will also have to be addressed.
Problems were identified with the split line surface of the t4th, 15th and 16th stages.
Pacldng gland hook fits were also damaged on these stages. Diaphragms 2,3,4,5 and
10 require extensive partition repair to restore section and steam path performance.
Contingency funding was provided for in the original Siemens order but has been
exhausted due to other repairs. This order totals $70,000 of ,vhich $20,000 is
incluided for any additional contingency requirements unknown at this time.
Please advise if you have any questions or require any additional information in this matter.
Thank you,
Manager, Electric Production Division
cc:Bob Nelson
DATE: NOVEMBER 7, 1995
CITY COUNCIL REPORT
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
SUBJECT: EMERGENCY PURCHASE ORDER #60839 TO GENERAL ELECTRIC
COMPANY IN THE AMOUNT OF $40,500.00
RECOMMENDATION: We recommend this purchase order to General Electric
Company be approved in the amount of $40,500.00.
SUMMARY: This emergency purchase order is for repairs to Electric Production
Steam Turbine Unit 5. The damage requiring repairs was not known until the unit
was opened and visual inspection was made. Telephone quotes for the repairs were
solicited from qualified bidders and General Electric Company was the lowest bidder
for the specified work.
The purchase order is considered an emergency to keep the repairs of Unit 5 on
schedule. Emergency Purchase order are exempt from the bid process.
BACKGROUND: Purchase Order #60839, Memorandum from Jim Thune dated
October 31, 1995.
PROGRAMS~ DEPARTMENTS OR GROUPS AFFECTED: Electric Production Division
FISCAL IMPACT: Funds for this expenditure are available in 1995-96 budget
account #610-101-1011-5130-8339.
Llosype,~f. ully submitted:
City Manager
Approved:
Name: Tom D. Shaw, C.P.M.
Title: Purchasing Agent
655 .A~ENDA
City of Denton Utilities - Electric Production Div.
1701 A Spencer Road · Denton, Texas 76205 · (817) 383 - 7551 · Fax: (817) 383 - 7555
October 31, 1995
Tom Shaw
Purchasing Agent
City of Denton
Re: Request for emergency purchase order
Dear Tom:
Summary:
This request is for issue of two emergency purchase orders per requisitions 165732
and 165733, both require Council approval. The orders concern repairs to Unit Five
turbine. The turbine is undergoing a major steam path inspection which requires
complete disassembly. Inspection has revealed considerable distress to the steam path
components which had not been anticipated. Repairs are necessary at this time to
restore machine integrity and reliability. Those repairs require lengthy welding and
machining processes. Work scopes and quotations have been developed. Siemens and
General Electric furnished low pricing for the specified work. This emergency request
has been made to expedite repairs. A normal bidding cycle for routine Council
authorization would extend the turbine outage well beyond the scheduled completion
period. Unit Five is the largest Denton unit. Availability of this unit is critical to
Texas Municipal Power Pool operations. Expediting the repair through emergency
purchase orders will minimize the negative impact to the outage schedule and
operations.
Details:
Upon disassembly of the Unit Five turbine, steam path damage was identified in
several stages of the rotating and stationary components. The damage was not
anticipated and was not funded in the purchase orders to Siemens or General Electric.
Subsequent work scope and repair estimates have been developed by those firn~s and
the orders have been processed accordingly to the low bids.
Repairs to be performed are detailed as follows:
General Electric-
The 17th (L-0) stage of rotating blades are equipped with sacrificial stellight erosion
Tom Shaw
Page 2
October S 1, 1995
shields. These shields incur the damage of turbine "wet" zone operation typical in the
last stages of the turbine and are by design replaceable. Replacement is recommended
when continued operation could result in damage to the parent blade material at
which time turbine blade failure would result. Funds were not included in the original
order since the extent of damage was unlmown until the machine ~vas opened for
inspection. Replacement of the shields totals $30,500. This represents savings when
compared to blade replacement cost estimated at $200-300,000 for material and
installation. Those costs do not include any provision for damages to the machine as
a result of a blade failure.
Erosion has also been identified on the 16th (L-1) stage tenon peening surface. The
leading tenons of t~vo blade packages have eroded to the extent that repairs are
necessary to maintain shroud securement integrity. Repairs will include removal of
the two covers, reprofiling the blade tips to expose additional tenon, milling ne~v
covers with pockets at the tenon and re-peening. This repair is also necessary to avoid
serious turbine damage which could result from blade failure. This repair totals
$5,000, compared to similar cost previously mentioned for blade failure.
Transportation costs to the GE service shop and miscellaneous contingency are
additionally funded by this order. This order totals $40,500.
Siemens Power Corporation-
Erosion identified in the turbine stationary diaphragms will also have to be addressed.
Problems were identified with the split line surface of the 14th, 15th and 16th stages.
Pacldng gland hook fits were also damaged on these stages. Diaphragms 2,3,4,5 and
10 require extensive partition repair to restore section and steam path performance.
Contingency funding was provided for in the original Siemens order but has been
exhausted due to other repairs. This order totals $70,000 of which $20,000 is
incluided for any additional contingency requirements unlmown at this time.
Please advise if you have any questions or require any additional information in this matter.
Thank you,
Manager, Electric Production Division
cc:Bob Nelson
E:\WPDOCS\ORD\SIEMEN.POW
AN ORDINANCEAMENDING ORDINANCE NO. 95-217 RELATING TO THE APPROVAL
OF AN EMERGENCY PURCHASE ORDER NO. 60838 TO SIEMENS POWER
CORPORATION TO PROVIDE REPAIRS TO TURBINE UNIT #5 TO PROVIDE FOR
ADDITIONAL EMERGENCY REPAIRS FOR TURBINE UNIT #5; PROVIDING FOR THE
EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR ANEFFECTIVE DATE.
WHEREAS, the City on November 7, 1995 authorized the emergency
purchase of repairs to Unit #5 Steam Turbine from Siemens Power
Corporation per Ordinance No. 95-217; and
WHEREAS, this procurement is necessary because of a public
calamity which has caused unforeseen damage to a public machine,
equipment, or other property and/or is necessary to preserve or
protect the public health or safety of the City's residents; and
WHEREAS, the City desires to purchase additional emergency
repairs to Unit #5 Steam Turbine and Siemens Power Corporation is
agreeable to sell additional repairs; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That Ordinance No. 95-217 is hereby amended to
provide for additional emergency repairs to Unit #5 Steam Turbine.
SECTION II. That Purchase Order No. 60838 is hereby amended
to provide for additional compensation of $65,454.00 payable to
Siemens Power Corporation under this ordinance.
SECTION III. That the funds for this amendment are to be
expended from the Electric Utility funds approved by the City
Council in the 1995-96 Budget.
SECTION IV. That this ordinance shall become effective
immediately upon its passage and approval.
PASSED AND APPROVED this the /~- day of ~ , 1996.
BO~ CASTLEBERRY, MA~ ~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:~
DATE: APRIL 16, 1996
CiT2CCOIJ~ _REPORT
TO: Mayor and Members of the City Council
FROM: Rick Svehla, Acting City Manager
SUBJECT: PURCHASE ORDER #60838 - SIEMENS POWER CORPORATION
ORDINANCE #95-217
RECOMMENDATION: We recommend purchase order #60838 to Siemens Power Corporation
and Ordinance #95-217 be revised to indicate an increase of $65,454.00 for a total amount of
$135,454.00.
SILMMARY: Purchase Order #60838 to Siemans Power Corporation was approved by Council
on November 7, 1995, in the amount $70,000.00 for emergency repairs to Unit #5 Steam Turbine.
See Ordinance #95-217.
The original $70,000.00 funded known problems and some miscellaneous contingency for unknown
problems as inspection continued. When the machine was opened and the steam path exposed
additional damage was identified. Significant increases involved the turbine control valves,
stationary diaphragms, bushing removal, bolt hole repair and other repairs discovered as work
progressed.
~ Purchase Order #60838 to Siemens Power, Ordinance #95-217 and
Memorandum from Jim Thune, Manager Electric Production Division.
PROGRAMS; DEPARTMENTS OR GROUPS .AFFECTED: Electric Production Division,
Denton Municipal Utility.
FISCAL IMPACT: This increase in funding will come from 1995-96 budget funds for
maintenance to generating equipment; account #610-101-1011-5130-8339.
Respectfully submitted:
Acting City Manager
Approved:
Name: Tom D. Shaw, C.P.M.
Title: Purchasing Agent
7 2 7. AGENDA
AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR EMERGENCY
PURCHASES OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES IN
ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH
PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, state law and ordinance require that certain contracts
requiring an expenditure or payment by the City in an amount
exceeding $15,000 be by competitive bids, except in the case of
public calamity where it becomes necessary to act at once to
appropriate money to relieve the necessity of the citizens, or to
preserve the property of the city, or it is necessary to protect
the public health or safety of the citizens of the city, or in case
of unforeseen damage to public property, machinery or equipment;
and,
WHEREAS, the City Manager has recommended to the City Council
that it is necessary to purchase goods or services due to the
following emergency conditions outlined in the memorandum attached
hereto as Exhibit "A", incorporated herein by reference; NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the City Council hereby determines that there
is a public calamity that makes it necessary to act at once to
appropriate money to relieve the necessity of the citizens, or to
preserve the property of the city, or to protect the public health
of the citizens of the city, or to provide for unforeseen damage to
public property, machinery or equipment, and by reason thereof, the
following emergency purchases of materials, equipment, supplies or
services, as described in the "Purchase Orders" attached hereto,
are hereby approved:
PURCHASE
ORDER NUMBER VENDOR AMOUNT
60838 SIEMENS POWER CORPORATION $70,000.00
60839 GENERAL ELECTRIC COMPANY $40,500.00
SECTION II. That because of such emergency, the City Manager
or designated employee is hereby authorized to purchase the
materials, equipment, supplies or services as described in the
attached Purchase Orders and to make payment therefore in the
amounts therein stated, such emergency purchases being in
accordance with the provisions of state law exempting such
purchases by the City from the requirements of competitive bids.
SECTION III. That this ordinance shall become effective
immediately upon its passage and approval.
PASSED AND APPROVED this the ~day of~ 1995.
BOB CASTLEBERRY, MA~ ~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
Denton Municipal Utilities - Spencer Station
1701 A Spencer Road · Denton, Texas 76205 · (817) 383 - 7551 · Fax: (817) 383 - 7555
March 26, 1996
Tom Shaw
Purchasing Agent
City of Denton
Dear Tom:
Summary:
This letter is in support of the attached requisition concerning a change order to
purchase order 60838. The original order funded emergency repairs performed while
the Unit Five turbine generator ~vas disassembled for inspection. The amount was
estimated based on the progress of the outage and anticipated repairs. This change
order funds the final amounts due Siemens.
Background:
Unit Five turbine generator was inspected under contract with Siemens Power
Corporation. The original contract funded known work and some miscellaneous
contingency. When the machine was opened and the steam path was exposed,
damage beyond the original work scope was identified. Due to the inherent expense
of opening a large steam turbine, damage found at the.time of inspection is most
efficiently repaired at that time. Since the original order was not sufficiently funded
to cover the additional expense, a new order was established to fund contingency
repairs that were lmown at the time.
Through the course of the inspection, other damage was identified and additional
repairs were executed.
A significant increase involved the turbine control valves. Due to excessive clearance,
valve stem bushings required re- sizing. Originally we planned to bore the bushings
oversize and adjust clearance with new stems. The hardsurface nitriding on the
bushing bores did not accommodate oversizing. Rather the bushings had to be
removed from the valve bonnets, align bored, nitrided and re installed. This task
alone totaled $25,800.00. Other expenses involved on site labor to repair a bolt hole
for the 1st stage nozzle securement, weld repair the horizontal joint surface of the LP
Tom Shaw
Page 2
March 26, 1996
turbine near the 14th stage, considerable repair to the stationary diaphragms
including partition section repair, new spill strips and repair of the packing hook fit
registers.
The outage length also exceeded original plans. Technical service fees supplied by
Siemens trader the original contract had to be increased $14,000.00 due to the
outage duration. All of these factors accumulated costs exceeding the original order.
Finandal Impact:
Original purchase order 60838 totaled $70,000.00
Change order request amount totals $65,454.00
New Purchase order total $135,454.00
Please place this matter on the consent agenda at your earliest convenience and let
me know if you have any questions or if I may be of any further assistance in
preparation of this matter.
~Thank you,
Manager, Electric Production Division
Approval: Bob Nelson, Executive Director Utilities
cc: Sharon Mays, Director~ Electric Utilities
file - PO60838 ~