HomeMy WebLinkAboutRes2012-028 Sponsored by: Hunt
Postponed from: May 14, 2012
CITY OF SEWARD, ALASKA
RESOLUTION 2012 -028
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ACCEPTING A GRANT FROM ALASKA ENERGY
AUTHORITY TO UPGRADE AND UPDATE GENERATION FACILITIES
AT FORT RAYMOND GENERATION PLANT FOR $3,960,000 AND
APPROPRIATING FUNDS
WHEREAS, the City of Seward relies on the backup generation facility in times of
emergency; and
WHEREAS, an update and reliable backup generation facility is in the best interest of
the community; and
WHEREAS, Council intends the warehouse proposed in the project be designed as
storage, dry room, and limited to union offices; and
WHEREAS, pursuant to the HB 108 for outright grant of funds, Alaska Energy
Authority #7910011 provides funds to update and upgrade the generation facilities at Fort
,,. Raymond to permit a more reliable generation plant; and
WHEREAS, the grant was awarded by the State on July 1, 2011; and
WHEREAS, these funds are allocated by the State to complete the Fort Raymond
Generation Substation Upgrade; and
WHEREAS, the funds to accomplish the work is expected to total $4,164,010 of which
$3,960,000 is an outright grant through AEA and $204,010 represents work to be accomplished
within the operational budget of the Electric Department.
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
AEA Grant #7910011 to upgrade and update generation facilities at Fort Raymond Generation
Plant, and accepts grant funds in the amount of $3,960,000 to Standby Generator Plant Grant
Revenue Account No. 505 -5052- 4680 -0200.
Section 2. This resolution shall take effect immediately upon its adoption.
CITY OF SEWARD, ALASKA
RESOLUTION 2012 -028
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PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 11 day of
June, 2012.
THE CITY OF SEWARD, ALASKA
/
David Seaward, Mayor
AYES: Valdatta, Bardarson, Shafer, Casagranda, Terry, Seaward
NOES: None
ABSENT: Keil
ABSTAIN: None
ATTEST:
le A-11,
ohanna Kinney, CMC
City Clerk
(City Seal)
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Agenda Statement
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Meeting Date: May 14, 2012 t a 9$
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To: City Council
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Through: Jim Hunt, City Manager
From: John Foutz, Utility Manager
Agenda Item: Accept Alaska Energy Authority grant #7910011
BACKGROUND & JUSTIFICATION:
Grant Agreement #7910011 from the State of Alaska through Alaska Energy Authority (AEA) provides funds
to update and upgrade the generation facilities at Fort Raymond to permit a more reliable generation plant.
Two contracts will be presented to the council, separate from the grant acceptance, allocating the grant funds
to the winning bidders for integrating the controls and for the building.
The grant was awarded by the State on July 1, 2011, in the amount of $4,000,000.00. AEA has taken 1%
($40,000) as administrative fees. The funds to accomplish the work are expected to total $4,164, 010, of
which $3,960,000 is an outright grant from AEA and $204,010 represents work to be accomplished within the
operations budget of the Electric Department.
INTENT:
Council authorize the City Manager to accept AEA Grant #7910011 to upgrade and update the facilities at
Fort Raymond Generation Plant.
CONSISTENCY CHECKLIST:
Yes No N/A
1. Comprehensive Plan : Sections 1.3, 3.7.3.1 and 3.7.3.2 X
1 -
2. Strategic Plan (document source here):
X
3. Other (list): I i
X - - -J
FISCAL NOTE:
The grant amount from the State of Alaska is $4,000,000 and Alaska Energy Authority is taking 1% or
$40,000 as administration fees. The initial projected cost estimated by Jack Anderson with Dryden & LaRue
(A subsidiary of EPS) is $4,197,010 and is divided into design and construction of the generation facility at
$1,749,250, engineering and construction of warehouse /administrative facility for $1,400,000, engineering at
$314,925, and Contingency at $692,835. The amount over $4,000,000 is expected to be match by the City of
Seward. Since the $4,000,000 is granted by the State, then the funds do not impact the city's electric
department operating expense. The $197,010, if used, will come from the electric department's reserves.
Approved by Finance Department: , u/
ATTORNEY REVIEW: Yes No X
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RECOMMENDATION:
Council approve Resolution 2012 - D authorizing the City Manager to accept grant funds by the state through
Alaska Energy Authority for the intended use of upgrading and updating the Fort Raymond Generation
Facility.