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HomeMy WebLinkAboutRes2009-069Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2009-069 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A PURCHASE AGREEMENT WITH GENERAL SWITCHGEAR INC. FOR THE PURCHASE OF SWITCHGEAR TO BE USED IN THE FORT RAYMOND SUBSTATION -GENERATION ADDITION PROJECT FOR A TOTAL AMOUNT NOT-TO-EXCEED $213,074.00 AND APPROPRIATING FUNDS WHEREAS, the City Council approved Resolution 2008-136, authorizing the City Manager to enter into adesign/build contract with Unit Company for design and construction of the Fort Raymond Substation -Generation Addition project; and WHEREAS, pursuant to the design/build contract, the switchgear specifications were part of the scope of the project, but were not required to be manufactured as part of the project; and WHEREAS, new generators will be installed this fall pursuant to the design/build contract and will not function without switchgear, and more specifically three switchgear cabinets; and WHEREAS, ifthe switchgear is not designed, constructed and delivered in conjunction with the installation of the new generators, the completion of the design/build contract will be delayed, thereby increasing the cost of the project; and WHEREAS, there is no time for the City's standard competitive bid procedure for the purchase of the switchgear due to the necessity of ensuring that construction and delivery of the switchgear coincides with the delivery of the new generators; and WHEREAS, Unit Company, through its engineering subcontractor, obtained expeditedbids for construction and delivery of the switchgear pursuant to the specifications created under the design/build contract and the lowest bid that ensured timely delivery of switchgear and complied with the quality of product required by the specifications was made by General switchgear Inc.; and CITY OF SEWARD, ALASKA RESOLUTION 2009-069 WHEREAS, by adopting this resolution, the City will directly purchase the switchgear from the supplier and in so doing, will eliminate additional overhead costs which would have been added on from Unit Company; and WHEREAS, the actual cost of the switchgear is below the initial cost estimate; and WHEREAS, the supplier with the lowest cost has a lead time that will not fit into the established timeline for expediting the installation of the new generators prior to the winter season, and the administration therefore recommends a purchase from General Switchgear Inc.; and WHEREAS, Seward City Code § 6.10.130 exempts the City from the requirements of competitive procurement procedures where the public interest would best be served by not requiring a competitive bid procedure; and WHEREAS, the City Council finds that it is in the public interest to waive the normal bid process per Seward City Code § 6.10.130 to enter into an agreement with General Switchgear Inc., to ...~ purchase three switchgear cabinets constructed in accordance with the specifications; and WHEREAS, Seward City Code § 6.10.120 exempts the City from the requirements of competitive procurement procedures where professional services are procured; and WHEREAS, the City Council finds that General Switchgear, Inc., would be providing professional services per Seward City Code § 6.10.120 by designing and constructing the switchgear cabinets for the new generators in accordance with the specifications. 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 General Switchgear Inc. for the purchase of three switchgear cabinets in an amount not to exceed $213,074.00. CITY OF SEWARD, ALASKA RESOLUTION 2009-069 Section 2: The Seward City Council hereby finds that the public interest is best served by waiving the formal bid procedures as required by Seward City Code, based on the recitals above which are incorporated herein. Section 3: Funding for this contract is appropriated as follows: $213,074.00 from the Electric Generator Project account no. 505-5050-5930. Section 4: This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27`x' day of July, 2009. THE CITY OF SEWARD, ALASKA ,.,~ Willard Dunham, Vice Mayor AYES: Valdatta, Kellar, Smith, Dunham NOES: None ABSENT: Bardarson, Keil, Corbridge ABSTAIN: None ATTEST: , - , Jean Lewis, CMC `~~ ~ City Clerk ~,.• ~,~~'~.,~ O~ (City Seal) ~,~,± . ~ Q,~.~' '°~'~ • -..Aw ~ i s9 0 ,~, ~ L~ ~ C'A .. , ~ --~- b • • ~ rya sm irr~~r ~ ~ S r~r ~ Council Agenda Statement Meeting Date: July 27, 2009 Through: Phillip Oates, City Manager/gyp From: John Foutz, Electric Utility Manager Agenda Item: Switchgear for New Generator Building BACKGROUND & JUSTIFICATION: As part of the generator replacement project, we will need to purchase three (3) electrical cabinets called Switchgear. The purpose of the Switchgear is to control the new generators in the new building. This is part of the Generator Project that was passed in December 2008. These materials are required for this project to be completed. After lengthy discussions it was concluded that, primarily to save the city money, the decision was made to directly purchase the switchgear from a manufacture. Doing so would cut the cost of overhead by Electric Power Systems (EPS) and Unit. The purchase would occur after EPS engineered the switchgear and then bid the materials out to four (4) separate suppliers, with a projected purchase price to be about $225,000. The supplier is being chosen on three primary criteria. The first consideration is price. The second consideration is a timetable that will fit within the timeframe for which we need the materials on location. The third criteria is based on the advice of EPS. With these criteria in mind we have chosen to purchase switchgear by a company called General Switchgear Inc. The total purchase price for the switchgear is approximately $199,074 and a shipping cost of $14,000. The least expensive option has a delivery time that is too long to be considered. The second option is considered inferior equipment and therefore is also discarded. The recommended actions are legal and come under Title section 6.10.120 (a8). This allows the City of Seward to enter into contract with General Switchgear Inc. who has special knowledge and will require some engineering of the requirements for this project. The recommended actions also come under Title section 6.10.130. This allows the City of Seward to an alternate procurement procedure to best serve the needs and public interests of the city. 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. FISCAL NOTE: Funding in the amount of $213,074 is appropriated from the Electric Generator project account number 505-5050-5930. Approved by Finance Department: ,~~ ~;~,0,~..7 ~~%~u%~~4~ ATTORNEY REVIEW: ~~.~~ ~~ ~~~ ~ i' ~k~~~,USG~~ l(/oli(,~rJ~l~ d0~i~t/SacJ ~/L'C~i ~ ~ ~i7'~i ~ ~.~iA/ 7~C RECOMMENDATION: ~a,~ ~~~.M ~.~(,~{ `..~,~~~s~~ fs e f--{{~~ o ~e~/~~' City Council approve Resolution 2009-161authorizing fhe purchase of switc'figear from (ierieral Switchgear Inc. in the amount of $213,074.