1989-059NO d9._U5_
AN ORDINANCE AUTHORIZING THE EXECUTION OF A REVISION TO A CONTRACT
BETWEEN THE CITY OF DENTON AND DOMINION BRIDGE SULZER, PROVIDING
FOR AN INCREASE IN THE CONTRACT PRICE, AND PROVIDING AN EFFECTIVE
DATE
WHEREAS, on December 12, 1987, the City awarded a contract for
the construction of certain improvements to the Lewisville Hydro
Electric Project in the amount of One Million Three Hundred Fifty
Eight Thousand Nine Hundred Seventy Dollars ($1,358,970 00), and
WHEREAS, the City Manager having recommended to the Council
that a revision be authorized to amend such contract with respect
to the scope and price and said change order being in compliance
with the requirements of Chapter 252 of the Local Government Code,
NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF DENTON
SECTION I. That the revision to the contract between the City
and Dominion Bridge Sulzer, a copy of which is attached hereto, in
the amount of One Hundred Twenty-three Thousand Seven Hundred
Eighty-three Dollars and Sixty Cents ($123,783 60), is hereby
approved and the expenditure of funds therefor is hereby
authorized
SECTION II. That this ordinance shall become effective
immediately upon it passage and approval
PASSED AND APPROVED this RAjd day of May, 1989
RAY T HE , MAYOR
ATTEST
n a
J N F ALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY
DATE May 2, 1989
CITY COUNCIL REPORT
TO Mayor and Members of the City Council
FROM Lloyd V Harrell, City Manager
SUBJECT BID #9735 Contract Revision to Dominion Bridge Sulzer, the
contractor for the Lewisville Hydroelectric Project for
$123,783 60
RECO(RIERDATION We recommend this contract revision be approved for the
$123,783 60
SUMMART The City of Denton was caused to delay this project and this dela)
caused expense to the contractor This amount represents the
compensation agreed to by Black & Veatch and the City of Denton
Utilities This is to have the recommendations of the PUAB at the
meeting April 26, 1989
(See attached Recommendation)
BACKGROUND Change order/revision, back-up documents, recommendations to
PUAB and April 26 minutes
PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED Electric Utility Costs
FISCAL IMPACT There is no additional impact on the Genera Fund
Respectfu ly submitted
Lloy Harrell
City Manager
Prepared by
N t' C P M
T tle Purchasing Agent
Approved
Nap \ ,rbhn J Marshall, C P M
T4' le vPurchasing Agent
I~r~
101N AM 111 ki 3 58
Date April 26, 1989
PUBLIC UTILITIES BOARD
TO
FROM
SUBJECT
CHAIRMAN AND MEMBERS OF THE PUBLIC UTILITIES BOARD
R.E. Nelson, Executive Director of Utilities
CONSIDER REVISION TO DOMINION BRIDGE SULZER CONTRACT
FOR FURNISHING TURBINE-GENERATOR FOR LEWISVILLE
HYDROELECTRIC PROJECT
The Utility Staff recommends Contract Revision in the
amount of $123,783 60 to Dominion Bridge Sulzer contract
for furnishing Turbine-generator and its auxiliaries for
Lewisville Hydroelectric Project
SUMMARY/BACKGROUNG
On August 24, 1988, the City of Denton has notified the
Federal Energy Regulatory Commission(FERC) that Denton is
temporarily suspending all engineering, powerhouse
construction bidding, and turbine manufacturing on
Lewisville hydroelectric project The reason for this
suspension is that the Corps of Engineers refused to enter
into an agreement with the City of Denton until a resolved
agreement could be reached due to the conflict of Dallas'
contract right, dated 1953, to connect to the outlet works,
and Denton's FERC granted license to build the hydro-
electric unit
The City of Denton has entered into Supplemental Agreement
Number 1 with the City of Dallas on December 14, 1988, to
resolve the issue of the water use at the outlet facilities.
Upon that the City of Denton has entered into an Agreement
with the Corps of Engineers on February 10, 1989.
On December 16, 1988, the City of Denton has authorized the
turbine manufacturer (DBS) and Black and Veatch to resume
all manufacturing, design and construction
DBSPUB42689
PAGE 2
To meet FERC license starting date and the impact of four
months suspension period DBS requested an additional sum
of $123,783 60 The breakdown costs are listed below
1-
Storage and handling
$5,700.00
2-
Escalation
$21,743.52
3-
Administration/Engineering
$35,000.00
Suspension and Restart
4-
Finance cost
$18,346.08
5-
Remake outer distributor mould
$7,000 00
6-
Early start on stay ring for
$4,714.00
FERC schedule
7-
Additional generator warranty period
$2,930 00
8-
Remake runner hub mold
$5,000 00
9-
New runner blade machine due to sub
$23,350 00
contractor selling equipmnet during
suspension
TOTAL
$123,783 60
PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED
Electric costs for water and sewer rate payers, electric
utility department for maintenance and operation
FISCAL IMPACT
The project is in the Capital Improvement Plan in the
amount of $3,953,000 and expected to cost $3,620,000
The unit will generate approximately 12,000,000 kwh
annually.
P~reppared y
Respectfully Submitted.
R.E Nelson, Executive
Director of Utilities
Joe Cherri, Electrical
Engineer
E B Tullos, Director
of Electric Utilities
Attach DBS Letter of 3/20/89
CHANGE ORDER/CONTRACT REVISION
CITY OF DENTON, TEXAS OWNER
DISTRIBUTED TO:
OWNER CONTRACTOR
BID# 9735
PROJECTt Lewisville Hydroelectric
ADDRESS: DBS ESCHER WYSS
555 rue Notre Dame
Lachine (Montreal),
Quebec, Canada H8S 2B1
(514) 485-2700
CHANGE ORDER NO s
DATED:
CONTRACT DATE: December 8, 1987
THIS CHANGE ORDER/REVISION MAKES THE FOLLOWING CHANGES IN THIS
CONTRACT
Four months suspension and restart charges which include the following
1 Storage and handling
2 Additional warranty for generator
3 Escalation
4 Finance Cost
5 Special manufacturing charges as
shown in DBS letter on April 4, 1989
The original (Contract Sum). $1,358,970 00
Net change by previously authorized Change orders. $
The (Contract Sum) prior to this Change Order $
The (Contract Sum) will be (increased) kdzovujuFflkk
kmabwaBld) by this Change order $ 123,793 60
The new (Contract Sum) including this Change Order
will be $
The Contract time will be (increased) JdK M
QD MUMUGMA ) by 120 DAYS
The date of substantial completion as of the date of
this Change order therefore is October of 1989
As above City of Denton
CONTRACTOR OWNER
901-A Texas Street
ADDRESS ADDRESS
Denton, TX 76201
B
BY
DATE DATE,
004 DOC
flH a-~,a-ad MON 1 7 19 DBS ESCHER WYSS
~s
DOS ESCHER WYSS
555 ruo Novo Damp Lachmo(Monu6a0 Canoga HBS 2 B I
T61 (514) 485 2700 T61ox 05 82268) T616copieur (514( 634 8644
March 20, 1989
City of Denton Purchasing
901-8 Texas Street
Denton, Texas
76201, U S A
Via Telecopier
(817-566-8239)
P.02
Serial Letter OBS 025
Black & Veatch Engineers
Architects
1500 Meadow Lake Parkway
Kansas City, Missouri
64114 U S A
Attn Mr. B. Aingwo_rth
Attention Mr. R E Nelson
Ref: City of Denton, Texas
Lewisville Hydroelectric Project
Specification No. 62 0200
B & V Project No 10566
DBS Contract 720-110
Sir,
in response to your letter of January 10 1989 and following our
telephone conversation of March 9 1989, we have recalculated the
additional price for suspension and restart of work. andt are
providing breakdowns for storage and handling, a
project activities; all as shown on the attached sheets.
The runner blade machining cost has increased by $ 27.785 (Cdn )
due to the fact that our sub-contractor who cast and is to machine
the blades, sold his "small" machine while the contract was
suspended, and now must use a large 5-axis machine.
Runner blade chronology of events:
Original order S 33 750
August 26 1988 Suspend work notice from 8 & V
December 21, 1969 Resumption of work notice Issued by City of
Denton
January 6, 1989 Lokomo (our sub-contractor) advised to proceed
. /2
,1,-, -Lra -+yy r1UN 1 r .dW LbS ESCHER WYSS P 03
OBS ESCHER VVY88
City of Denton Purchasing
Page 2
January 10, 1989 Lokomo advised new price of $ 77,035 Cdn, for
blades
January 15, 1989 Various disucussxons with Lokomo
Price reduced to $ 61 536
Increase • $ 27 785 Cdn.
Also we have adjusted the schedule of payments to reflect the
present situation. The generator and embedded parts percentages
have been adjusted to better reflect the relative costs
As agreed we are adv1sin8 the generator manufacturer to ship the
generator too
city of Denton
Electrial Power Plant
Spencer Road
Denton, Texas
Attn Mr Jim Thune
The additional warranty for the generator assuming start up by
March 1 1990 is $ 2,930
The cost impact, if any, of the warranty of our other equipment
remains to be renegotiated
Please confirm your acceptance of the above
Yours truly
DBS ESCHER WYSS
Frederik R van der Veen
Project Manager
c c Mr John J Marshall
Mr D F Guyot
Mr W,R Strub
Mr Z Burney
Mr A J Mettler
(City of Denton Purchasing)
(Black b Veatch)
FVSIyV
MA.-20-a9 MON
17
.20
DBS
ESCHER
Wyss
p 04
Des 88CHER WYSS
20-Mar-89
LEWISVILLE PROJECT
SUSPENSION & RESTART CHARGES
STORAGE & HANDLING CHARGES
DRAFT TUBE LINER
300
DISCHARGE RING
100
STAY RING
150
INNER DISTRIBUTOR
50
WICKET GATES
50
GATE OPERATING RING
50
RUNNER BLADES
75
RUNNER SERVOMOTOR PISTONS (2)
25
TURBINE SHAFT FORGINGS
35
TURBINE SHAFT PIPE
15
MISCELLANEOUS ITEMS
75
STORAGE PER MONTH
925
STORAGE FOR 4 MONTHS
3,700
GENERATOR 3 MONTHS X $300
900
HANDLING TURBINE COMPONENTS
500
HANDLING GENERATOR
600
TOTAL STORAGE & HANDLING CHARGES $5,700
$5,700 00
ADDITIONAL WARRANTY FOR GENERATOR
$2,930 00
ESCALATION FOR 4 MONTHS.
(1,358,970-(67,948.80+203,845
50))X4/12x6%
$21,743 52
FINANCE COST FOR 4 MONTHS
(883,330-(67,948 50+203,845 50))x4/12x9%
$18,346 08
SPECIAL MANUFACTURING CHARGES
REMAKE OUTER DISTRIBUTOR MOLD 7,000
EARLY START OF WORK ON STAY RING 4,714
REMAKE RUNNER HUD MOLD 5,000
NEW RUNNER BLADE MACHINING COST 23,350
$40,064 $40,064 00
SUSPENSION & RESTART OVERHEAD CHARGE $50,000 00
x=tea IIIIIIIIIIaa
TOTAL PROJECT SUSPENSION & RESTART CHARGES. $138,783 60
MH 1-Ll?-B9 MON 17 21 DHS ESCHER WYSS P 05
Doe escm Wyse
LEWISVILLE PROJECT
SUSPENSION AND RESTART ACTIVITIES
1 Advise all suppliers to suspend work
Involves Project Manager
Purchasing Agents
2 Get in touch with suppliers upon resumption,
Involves Project Manager
Purchasing Agents
3 Instruct manufacturing to suspend all work
involves, Engineering
Drawing office
Inspection
Contract Administration
Manufacturing
4 Instruct manufacturing to resume work
- Reissue of drawings and instructions to shop.
Involves Engineering
Drawing office
Inspection
Contract Administration
Manufacturing
5. Additional correspondence with customer
- Contract Administration
6 Revise schedules.
- Contract Administration
- Scheduling Dept
/ immu &ayulacd Lam. r4&FI6 to got ro.inrinelnted with the
contract
- Different people assigned than previously
LUMP SUM CHARGE $ 50,000
4
,IFS MUN 17 21 DBS ESCHER WYSS
DO$ KOCHER WYSS
LEWISVILLE PROJECT
SCHEDULE OF PAYMENTS
INVOICE
DATE
MILESTONE
MARCH
15,
1988
SUBMISSION OF CERTIFIED
45 DAY DRAWINGS
JUNE
6,
1988
SUBMISSION OF CERTIFIED
90 DAY DRAWINGS
MARCH
311
1988
DELIVERY OF GENERATOR
APRIL
14,
1989
COMPLETION OF EMBEDDED PARTS
SEPT
15,
1989
DELIVERY OF TURBINE STAY
RING/DISTRIBUTOR ASSEMBLY
OCT
27,
1989
DELIVERY OF TURBINE RUNNER
FINAL ACCEPTANCE
TOTAL CONTRACT VALUE
P 06
20-Mar-89
PAYMENT US$
5%
67,948
50
15%
203,845
50
20%
271,794
00
15%
203,845
50
25%
339,742
50
10&
135,897
00
104
135,897
00
100% $1,358,970 00
MARCH 23, 1989 PROJECT SUSPENSION & RESTART CHARGES $138,783 60