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