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CITY OF SEWARD,ALASKA
RESOLUTION 2016-081
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING A SOLE SOURCE CONTRACT WITH
STURGEON ELECTRIC FOR A JOINT COMMUNICATIONS PROJECT
WITH TELALASKA COMMUNICATIONS TO BORE UNDER SNOW
RIVER FOR AN AMOUNT NOT TO EXCEED $89,951.40, AND
APPROPRIATING FUNDS
'WHEREAS,the transmission line to the Seward area is a radial feed;_and
WHEREAS, the transmission line at approximately mile 17.75, crossing Snow River and
constructed parallel to the Seward Highway, has two three-pole structures that cannot hold
underbuild distribution nor communication lines; and
WHEREAS, constructing a distribution line under Snow River would give the electric
department an alternative feed South from the Lawing Substation; and
WHEREAS, TelAlaska (TelAk) has already contracted Sturgeon Electric to bore under
Snow River and have invited the electric department to join in the project; and
WHEREAS,the electric department will achieve cost efficiencies by joining TelAk rather
than independently contracting for the work; and
'WHEREAS, all the required permits are already in place from TelAk and the electric
department could add amendments to any permits requiring changes for less cost than filing the
permits independently; and
WHEREAS,the funds for this project will come from the electric department's major repair
and replacement fund (MRRF); and
WHEREAS, Seward City Code section 6.10.130 allows for exemptions from competitive
procurement stating,"Restrictions and provisions of this title shall not apply where the city council
determines and makes written findings that the public interest would be best served by not requiring
competitive bids/proposals. The best interest determination may be based upon,but is not limited to,
a finding that the services or articles can be procured at a lower cost without competitive bidding.".
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA THAT:
Section 1. The City Council finds that it is in the public interest to sole source to Sturgeon
Electric for the construction of boring and trenching to cross Snow River underground with electric
distribution conductors based on the recitals above which are incorporated herein.
CITY OF SEWARD,ALASKA
RESOLUTION 2016-081
Section 2. The City Manager is hereby authorized to enter into a sole source agreement with
Sturgeon Electric to perform the construction of trenching and boring to cross under Snow River
within the utility easement.
Section 3. Funding in an amount not to exceed$89,951.40 is hereby appropriated from the
Electric MRRF Fund reserves account no. 15001-0000-3400 to contracted services account no.
15001-0000-7009.
Section 4. This resolution shall take effect immediately.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 21st day of
November.
THE CITY OF SEWARD,ALASKA
A]6/41.44e%ri)
an Bardarson,Mayor
AYES: Casagranda, Keil, Squires, McClure,Altermatt, Slater, Bardarson
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
I
/,.LL,Aa`._
Johanna Ki TY, CMC
ity Clerk
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• Agenda. Statement
• oc sE.ts:
Meeting Date: November 21, 2010 ,
"f•xv-11
To: City Council 42
Through: Jiinliunt, City Man ger
From:: John Fputz,.Electrit witManager
Agenda Item: Snow River Boring andTrenching
BACKGROUND &JUSTIFICATION:
Utilities often share the same space easement corridor.-Telalaska(TOM)has requested t0 attach
to`SOrneeviard Public Utilities electric ppleS and bore under Snow,River with their communication
lines. TelAk has.extendedan offer:to the electric department to join with them in their project by
installing electrical lines at the same time they install their communication lines. The electric
department has attempted to contract for this work in the past and found the cost to be prohibitive
This added electrical infrastructure give the electric department an alternative distribution feed
heading south-out of the Lawing Substation. Having a second feed from the south.wohld be a step
toward upgrading the transmission line from 69kV'to 115kV in the future. By joining with TelAk
the City saves money related to filing for permits,mobilization,and demobilization of construction
crews. The electric, department will still pay for the construction portion of its requested
underground line. TelAk has already chosen a Contractor through their procurement procedures and
the electric department will enter into a separate agreement with the contractor to realize the
cooperative savings. The City may enter into an,agreement withSturgeon Electric according to
Seward City Code section 0.10.130 which allows for exceptions procurement when it is
cletermiried to be,iii the best interest of the public.
INTENT:
The intent is to realize cost sayings,to the electric department by joining in to an already existing
construction project by another utility in the -so,* geographical area, so as to achieve cost
efficiencies related to construction crew mobiliZation,demobilizationipennitting,and shared project
coSt savings.
CONSISTENCY CHECICLISTt Yes No N/A
Comprehensive Flan,(1.3, $.7..1.4 17.112).:continue to upgrade and
1. expand„utilities to meet existing needs and encOuragefuture
daVelOpment.
Strategic.Plan: The mission of the City of Seward government is to
2. X
provide:quality:leadership and economic wellbeing of its citizens
,3. Other(list): X
146
FISCAL NOTE
Funding for this projeci-willvome from the Electric Major,Repair and Replacement .Fund which
dturentlYr,hOicash1706nce project was identified as a moderate-risk •
ettp#4 projdetitithe,2616/ 0"1-7-Caiiital linprovenient:Plan.-
Approye&by-Finance Department; igi42/Z:)4Arjuif,j
ATTORNEY REVIEW: Yes. No X Not
RECOMMENDATION:
To authorize the City Manager to enterinto an agreement with'Sturgeon Electric for the-construction
of thp Snowriv,dr:boring and Irenehhiglo achieve COst.sayingwto ConstruCtthe•prOject:
•
•
147