HomeMy WebLinkAboutRes2010-027 Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2010 -027
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO MAKE AN
ADDITION TO THE FORT RAYMOND GENERATOR PROJECT NOT TO
EXCEED THE AMOUNT OF $265,000 TO CONNECT AND COMMISSION
GENERATOR N2
WHEREAS, the scope of the original project changed to not connect or commission
generator N2; and
WHEREAS, additional funds were allocated in the 2010 and 2011 budget to continue work
on the Fort Raymond generator project after the initial scope of work was completed; and
WHEREAS, the cost to use Unit Company to connect and commission generator N2 will be
less than hiring additional contractors or rehiring Unit Company to come back at a later date and
complete the work; and
WHEREAS, not proceeding ahead at this time will delay connecting and commissioning
generator N2 until the next winter season; and
WHEREAS, with both generators N1 and N2 online the electric department can start making
preparations to move generators 4 and 5 from arctic packs into the new building.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. the City Manager is authorized to make a change order to the contract with Unit
Company for the Fort Raymond generator project in the amount of $265,000 for connecting and
commissioning generator N2.
Section 2. This resolution shall take affect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22n day of
March, 2010.
CITY OF SEWARD, ALASKA
RESOLUTION 2010 -027
THE CITY OF SEWARD, ALASKA
-/
Willard E. Dunham, Mayor
AYES: Valdatta, Bardarson, Keil, Amberg, Shafer, Dunham
NOES: None
ABSENT: Smith
ABSTAIN: None
ATTEST:
Jean Lewis
City Clerk
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Council Agenda Statement
Meeting Date: March 22, 2010
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To: Phillip Oates, City Manager /V u q ' 4 a
From: John Foutz, Electric Utility Manager q
Agenda Item: $265,000 for commission of generator N2
BACKGROUND & JUSTIFICATION:
As work continues on the Fort Raymond generator plant it is cost effective to establish a change
order with Unit Company to connect and commission generator N2. This is the second of the two
generators purchased for installation in the new generator building. Funding in the original scope of
work was insufficient to connect and commission the second generator.
The shortfall in funding was a result of decisions during final review of the project to change the
building location, construct a larger generator building, and add various mechanical and electrical
modifications. Funding in the initial contract was sufficient to place generator N2 on its new
foundation but insufficient for assembling the wiring and piping and completing commissioning.
As a result ofthe project changes and modifications the City of Seward compared different courses of
action to connect and commission generator N2. The analysis revealed that the use of the current
onsite contractor (Unit Company) would reduce mobilization and demobilization costs and save
money. As a result of this analysis, funding was budgeted in 2010 to establish a change order with
Unit Company in the amount of $265,000 to accomplish this work. These funds were budgeted in
account 501 -5400 -5925.
By allocating additional funding at this time to the project, the commissioning of generator N2 will
occur before next winter. Once commissioning is complete the Electric Department will begin moving
generator 4 and then generator 5 from arctic packs into the new building. The staff of the Electric
Department will complete this work. Having 5 ofthe 6 2.5 MW generators available during the final
stages ofthe project will provide sufficient generation and reserves to handle peak load requirements.
Once all 6 generators are online the Electric Department will have the capability to provide
emergency power beyond the existing electric service area.
INTENT:
The intent is to use funding budgeted in 2010 to connect and commission generator N2 before Unit
Company completes the current scope of work and departs the site.
CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the
Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council
Rules of Procedures or Other Plans or Policies: Yes
93
FISCAL NOTE:
The eventual need for this funding was anticipated and budgeted for in the 2010/2011 budget under
the electrical fund 501 -5400 -5925.
Approved by Finance Department: . ,ti, " . l �
I
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
°1
Seward City Council approve Resolution 2010 - authorizing the City Manager to initiate a change
order to the Fort Raymond Generator Project in the amount not to exceed $265,000 with Unit
Company for the intent of connecting and commissioning generator N2.
5 , 4