HomeMy WebLinkAboutRes2008-045Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2008-045
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO PAY A DEPOSIT TO
VALLEY POWER SYSTEMS, INC. TOWARD THE PURCHASE OF ONE (1)
REBUILT EMD GENERATOR SET, RATED AT 2865KWE, FOR AN
AMOUNT NOT-TO-EXCEED $112,500, AND APPROPRIATING FUNDS
WHEREAS, in August 2007, during a work session, direction was given to begin working
towards replacing 2 generators, a building to house the generators and a warehouse with office space
at the Fort Raymond site; and
WHEREAS, the Council approved Resolution 2007-085 which authorized the City Manager to
pursue funding for two electric generators and associated components and design/build proposals for
Fort Raymond generator building and a warehouse with office space; and
WHEREAS, in April 2008, the City issued the RFP and bid packet for design build
proposals for Fort Raymond generator building; and
WHEREAS, knowing exactly what generator units will be placed in the building is very
.. important and also impacts the cost of the project, allowing for the systems to be designed without
future changes required due to the changes in available equipment; and
WHEREAS, the Council finds that it is in the best interest of the public to purchase used,
rebuilt or remanufactured, Electro-Motive Diesel's (EMD) and by placing a deposit of $112,500.00
on such a unit to secure it for future purchase, reduce the overall project cost and assist in
streamlining the design process; and
WHEREAS, a subsequent resolution will come forward seeking approval to purchase the
generators.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, THAT:
Section 1. The City Manager is hereby authorized to pay a deposit to Valley Power Systems,
Inc., towards the purchase of 1 rebuilt EMD generator set, rated at 2865kWe, for an amount not-to-
exceed $112,500.
Section 2. Funding in the amount of $112,500.00 is hereby appropriated from the Electric
Enterprise fund retained earnings account no. 501-0000-3050 to the equipment account no. 501-
5100-5930.
Section 3. This resolution shall take effect immediately upon its adoption.
CITY OF SEWARD, ALASKA
RESOLUTION 2008-045
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27th day of
May, 2008.
THE CITY OF SEWARD, ALASKA
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Clark Corbridge, Mayor
AYES: Dunham, Valdatta, Bardarson, Amberg, Smith, Kellar, Corbridge
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
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Council Agenda Statement
Meeting Date: May 27, 2008
To: Phillip Oates, City Manager~',~jj
From: Tim Barnum, Electric Utility Manager
Agenda Item: Authorize the City Manager to pay a deposit to Valley Power
Systems, Inc. towards the purchase of one (1) rebuilt EMD
generator set, rated at 2865kWe, for an amount not to exceed
$112,500.
BACKGROUND & JUSTIFICATION:
After the August 13, 2007 work session, the City Council gave direction to the
administration to begin working to replace two generators, and to construct a building to
house the generators and a warehouse with office space at the Fort Raymond site.
Council approved Resolution 2007-085 which authorized the City Manager to pursue
funding for two electric generators and associated components and design/build proposals
for Fort Raymond generator building and a warehouse with office space. This project has
been divided into two phases, with the generation building being Phase I and the
warehouse as Phase II.
On April 11, 2008 the City issued a RFP and bid packet, which was properly advertised
and made available to the public. Advertising took place in the Seward Phoenix LOG,
the Anchorage Daily News, the Plans Room, City Hall bulletin board and Harbormaster's
Office.
The City has been working with Valley Power Systems, Inc. to secure the generator sets
as one of the efforts being used to help reduce the cost of the project. The City has
located two used EMD generator sets. One unit is a remanufactured 2500 kW EMD with
less than 30,000 original hours since new and the other unit is a rebuilt 2865kW EMD.
The second unit is a sister unit to the City's #6 generation unit. Our #6 unit has proven to
be a very good, reliable and dependable unit.
The current owner of the second unit will not continue to hold the unit unless the City
places a deposit equal to 25% of the purchase cost (minus any applicable taxes) on the
unit. The deposit will also allow for equipment changes and testing to begin. However,
only a portion of the deposit may be refundable if the City decides not to continue with
the project. The refundable amount would be based on how long the unit had been held
and the cost of any of the equipment changes already completed.
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CITY OF SEWARD, ALASKA
RESOLUTION 2008-045
CONSISTENCY CHECKLIST:
Where applicable, this resolution is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of
Procedures.
Other:
FISCAL NOTE:
Funding for this deposit is to be appropriated from the Electric Fund retained earnings
account no. 501-0000-3050.
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Approved by Finance Department: ~ -`" - ~.~ n
RECOMMENDATION:
City Council approve Resolution 2008-045, authorizing the City Manager to pay a
deposit to Valley Power Systems, Inc., toward the purchase of 1 rebuilt EMD generator
set, rated at 2865kWe, for an amount not-to-exceed $112,500, and appropriating funds.
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