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
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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
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Willard Dunham, Vice Mayor
AYES: Valdatta, Kellar, Smith, Dunham
NOES: None
ABSENT: Bardarson, Keil, Corbridge
ABSTAIN: None
ATTEST:
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Jean Lewis, CMC
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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~~
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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.