HomeMy WebLinkAboutRes2014-015 Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2014-015
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ACCEPTING AN AMENDMENT TO GRANT NUMBER
7910011 THROUGH ALASKA ENERGY AUTHORITY TO UPGRADE
AND UPDATE GENERATION FACILITIES AT FORT RAYMOND
GENERATION PLANT FOR $2,000,000, AND APPROPRIATING FUNDS
WHEREAS, pursuant to the HB 108 (2011) Alaska Energy Authority ("AEA") Grant
No. 7910011 authorized $3,960,000 to update and upgrade the generation facilities and to
construct an office/warehouse at Fort Raymond; and
WHEREAS, Council passed Resolution 2012-028 accepting and allocating the grant
funds to the Standby Generator Plant Project on June 11, 2012; and
WHEREAS, the City received a single proposal in response to a 2012 Request for
Proposals to accomplish the generator upgrades, and the bid price was higher than the available
funds; and
irm WHEREAS, the Alaska Energy Authority, being cognizant of the shortfalls of funding
for this project, has authorized a $2,000,000 increase in grant funding for the project; and
WHEREAS, AEA will retain $20,000 (1%) of the grant for project management costs,
resulting in a net increase of $1,980,000 to be used within Grant No. 7910011, for the Seward
Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The Seward City Council hereby authorizes the City Manager to accept
Amendment #2 to AEA Grant #7910011.
Section 2. Funding in the amount of $2,000,000 is hereby accepted from the Alaska
Energy Authority, grant account no. 505-5053-4680-0200, raising the total grant allocation to
$6,000,000, and is appropriated as follows: $20,000 to Project Overhead account no. 505-5053-
5580 for and $1,980,000 to Infrastructure Account no. 505-5053-5925.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward this 10`x' day of
February, 2014.
CITY OF SEWARD, ALASKA
RESOLUTION 2014-015
THE CITY OF SEWARD, ALASKA
Pea40 /3a1-42z2 .1
can Bardarson, Mayor
AYES: Keil, Casagranda, Terry, Squires, Butts, Bardarson
NOES: None
ABSENT: None
ABSTAIN: None
VACANT: One
ATTEST:
- 7
A_ I . &Mr
Johanna Kiiy, CMC
lity Clerk
(City Seal)
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Agenda Statement
Meeting Date: February 10, 2014
•
To: City Council
Through: Jim Hunt, City Manager
From: John Foutz, Electric Utility Manager
Agenda Item: Accept Amendment#2 to AEA grant#7910011
BACKGROUND & JUSTIFICATION:
Alaska Energy Authority administers Grant#7910011, providing funds to update and upgrade the
generation facilities at Fort Raymond and to build a new warehouse to permit a more reliable
generation plant.Council accepted AEA Grant#7910011 by Resolution 2012-028 on June 11,2012
for that purpose.
The grant was awarded on July 1,2011,in the amount of$4,000,000.00. AEA took 1%($40,000)as
administrative fees. The funds to accomplish the work were expected to total$4,164,010,of which
$3,960,000 is an outright grant from AEA and$237,010 represents work to be accomplished within
the operational budget of the Electric Department.
Subsequent RFP's and warehouse procurement have shown these funds to be inadequate to complete
the pr jcct.
Recognizing that the p ject was under-funded,AEA has procured a further$2,000,000 in the form
of an amendment to Grant No. 7910011, less 1% management fee ($20,000), for a total increase of
$1,980,000. This brings the funds available from AEA Grant No. 7910011 to $5,940,000.
DNTENT:.
That the City Council hereby authorizes the manager to accept Amendment#2 to AEA Grant
#7910011 in the amount of$1,980,000 to upgrade and update generation facilities at Fort
Raymond Generation Plant and to complete construction and set-up of the new Warehouse at 605
Sea Lion Avenue.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan: (3.7.3.1) Continue to upgrade and expand utilities
io meet existing needs and eocoura�cfuture d
\. 2{
Expand customer base within the Seward Electric Utility area as a
means to reduce energy costs and improve services.
2. Strategic Plan (document source here): }{
3. Other(list): X
FISCAL NOTE:
Additional grant funds in the amount of$2 million will increase the amount available for the project
by$1,980,000 with the remaining $20,000 to go to the Alaska Energy Authority for administrative
overhead costs. Approved by Finance Department:
ATTORNEY REVIEW: Yes No
?-4-so\o-k-iby,
RECOMMENDATION: Accept Amendment#2 to AEA grant#7910011 to accept additional grant
funds in the amount of $2,000,000 to complete the generator upgrades and finish construction on
the electric warehouse.