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HomeMy WebLinkAboutRes2008-077Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-077 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH VALLEY POWER SYSTEMS TO PURCHASE 2 REBUILT EMD GENERATORS FOR AN AMOUNT NOT TO EXCEED $667,500.00 WHEREAS, 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 a the Fort Raymond site, and WHEREAS, Council approved Resolution 2007-085 which authorized the City Manager to pursue funding for the 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; and WHEREAS, 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; and WHEREAS, Valley Power Systems has located two used EMD rebuilt generator sets. One unit is a remanufactured 2500kW generator with less than 30,000 hours since new at a cost of $350,000.00, and the other unit is a rebuilt 2865kW at a cost of $450,000.000. The second unit is a sister unit to the City's #6 generation unit; and WHEREAS, the City has paid a total of $132,500.00 in deposits toward the purchase of these generators with the amount of $112,500 being paid pursuant to Resolution 2008-045; and WHEREAS, funds have been secured for this project by the Bond Bank. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized to enter into an agreement with Valley Power Systems to purchase 2 rebuilt EMD generators for a price not to exceed $667,500.00. ($800,000.00 minus the $132,500.00 deposits already paid) from account 505-5050-5390. Section 2. This resolution shall take affect immediately upon its adoption. CITY OF SEWARD, ALASKA. RESOLUTION 2007-077 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 11th day of August 2008. THE CITY OF SEWARD, ALASKA Clark Corbridge, Mayor AYES: Dunham, Valdatta, Bardarson, Amberg, Smith, Corbridge NOES: None ABSENT: Kellar ABSTAIN: None ATTEST: >> .~ ~ , ~~ ~~ Sea Lewis„'CM City Clerk `' ~..% (City Seal) ~~~•;~ Qf SF~~ ~,~~ •' Qtr pCKp~EL4~~••. ~~~~. M ~ p-~ ~ ~ M ~ ~ r~ • ~ r ~4~~N~~~~ . ~~'•..; ~OF A~Ag•~. ,~ ~~~ Council Agenda Statement Meeting Date: August 11, 2008 To: Phillip Oates, City Manage:~'/~~ From: Tim Barnum, Manager Electric Utility ~t " d,,nn ~~ ~~ ~ Agenda Item: Authorizing the City Manager to purchase 2 rebuilt EMD Generator sets from Valley Power Systems, Inc. for an amount not to exceed $667,500.00. 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 the 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. 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 2500kW EMD with less than 30,000 hours since new at a cost of $350,000.00, and the other unit is a rebuilt 2865kW EMD at a cost of $450,000.00. 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 City has paid a total of $132,500.00 in deposits to hold these two units. 2 $10,000.00 deposits were paid in 2006 and $112,500 was approved by Council Resolution 2008-045 on May 27, 2008. On July 14, 2008 Council approved purchase of radiators and exhaust silencers for these units on Resolution 2008-066. The City has been approved for funding for this project by the Bond Bank. 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 purchase will come from the bond proceeds. RECOMMENDATION: City Council approve Resolution 2008 ~~ authorizing the City Manager to purchase 2 EMD rebuilt generators from Valley Power Systems for an amount not to exceed $675,500.00 ($800,000.00 minus the $132,500.00 deposits already paid) from account 505-5050-5390. ~4