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Home My WebLink AboutRes2014-064 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2014-064 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,AUTHORIZING THE CITY MANAGER TO PURCHASE FROM VALLEY POWER SYSTEMS, INC. THE COMPONENTS, INCLUDING INSTALLATION, SUPPORTING THE RELOCATION OF TWO (2) ELECTRO-MOTIVE DIESEL (EMD) GENERATORS, PREVIOUSLY PURCHASED FROM ARCTIC PACK, TO BE ENCLOSED IN THE NEW GENERATOR BUILDING FOR AN AMOUNT OF $212,403.01 AND ESTABLISHING A CONTINGENCY FUND OF $21,240.30, AND APPROPRIATING FUNDS WHEREAS, on June 11, 2012, Council approved Resolution 2012-028 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; and WHEREAS,two(2)Electro-Motive Diesel(EMD)generators will require the installation of sensors and servers for automation; and WHEREAS,this equipment must be converted to air starters because the electric starters are no longer manufactured and are unavailable as spares; and WHEREAS, the restrictions and provisions of Articles 2 and 3 of chapter 6.10 shall not apply to supplies, materials, equipment or contractual services which can only be furnished by a single dealer, or which have a uniform published price, pursuant to SCC 6.10.120(A)(5); and WHEREAS, Valley Power Systems, Inc. is the designated EMD factory representative serving Alaska and are the sole source for the equipment and expertise necessary to upgrade these EMD Generators; and WHEREAS,Valley Power Systems,Inc.has quoted parts,labor and service to upgrade two (2) EMD Generators and to provide specialty items necessary to upgrade support systems, such as increase air supply and fuel systems, for a price not to exceed $212,403.01; and WHEREAS, it is prudent to establish a contingency fund in the amount of$21,240.30 (or 10%). Thus,the contingency funding and the proposal costs require a total funding of$233,643.31. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: r.• maw CITY OF SEWARD, ALASKA RESOLUTION 2014-064 Section 1. The City Council finds it is in the City's best interest to waive competitive bidding procedures and permit the sole sourcing of this equipment and these services to Valley Power Systems, Inc., pursuant to SCC 6.10.120(A)(5). Section 2. The City Manager is authorized to purchase from Valley Power Systems,Inc.the components,including installation,supporting the relocation of two(2)EMD Generators,previously purchased from Arctic Pack, to be enclosed in the New Generator Building for an amount of $212,403.01 and is authorized to establish a contingency fund in the amount of$21,240.30. Section 3. Funding for this purchase, in an amount not to exceed $233,643.31, is hereby appropriated from the AEA Grant Account No. 505-5052-5380. 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 28th day of July, 2014. THE CITY OF SEWARD,ALASKA can Bardarson, Mayor AYES: Keil, Casagranda, Terry, Squires, Butts, Darling, Bardarson NOES: None ABSENT: None ABSTAIN: None ATTEST: i. !arse- A J•hanna Kin ey, CMC ty Clerk (City Seal) ,. tG � - 1 •ash 5 54�`� '� d4-SW4LOitS1.644 Council Agenda Statement e�of sets. V ; 9,A Meeting Date: July 28, 2014 r Through: Jim Hunt, City Manager gtAS101' From: John Foutz, Electric Department Manager Agenda Item: Purchase from Valley Power Systems, Inc.the components, including installation, supporting the relocation of two (2) EMD Generators, previously purchased from Arctic Pack, to be enclosed by the New Generator Building BACKGROUND & JUSTIFICATION: On June 11, 2012, the City Council approved Resolution 2012-028 accepting Grant No. 7910011 from Alaska Energy Authority to upgrade and update generation facilities at Fort Raymond Generation Plant for $3,960,000 and appropriating funds. Part of that project includes moving two (2) Electro-Motive Diesel (EMD) Generators into the New Generator building and configuring them for computerized (automatic) operation. These two EMD Generators will require the installation of sensors and servos for automation. In addition, they must be converted to air starters because the electric starters are no longer manufactured and are unavailable as spares. Finally, the compressed air and fuel systems installed in 2009 are inadequate to supply four generators and must be upgraded. On May 6,2014,Valley Power Systems,Inc. provided a quote for parts, labor and service to upgrade two (2) EMD Generators to permit computerized controls (SCADA) to be employed to operate them. The quote in an amount not to exceed$212,403.01 includes specialty items necessary to upgrade systems,such as increase air supply and fuel systems to permit the operation of all four generators in the New Generator Building. Valley Power Systems,Inc. is the designated EMD factory representative serving Alaska. They are the sole source for the equipment and expertise necessary to upgrade these EMD Generators. We request that Council find it in the public interest to waive competitive bidding procedures and permit the sole sourcing of this equipment and these services to Valley Power Systems, Inc., pursuant to SCC 6.10.120(A)(5). It is prudent to establish a contingency fund in the amount of$21,240.30 (or 10%), in case of unexpected contingencies. Thus,the contingency funding and the proposal cost require a total funding of$233,643.31. INTENT: To authorize the City Manager to purchase from Valley Power Systems, Inc. for components, including installation, supporting the relocation of two (2) EMD Generators, previously purchased from Arctic Pack,to be enclosed in the New Generator Building for an amount not to exceed$212,403.01 and establishing a contingency fund of$21,240.30 and appropriating funds from account number 505-5052- 5380. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (1.3, 3.7.3.1, 3.7.3.2): Continue to upgrade and 1. expand utilities to meet existing needs and encourage future X development. 2 Strategic Plan : The mission of the City of Seward government it is to X provide quality leadership and economic wellbeing of its citizens 3. Other (list): X FISCAL NOTE: Funding for this project, in its entirety, was provided to the Electric Fund by AEA Grant #7910011. Approved by Finance Department: it, ATTORNEY REVIEW: Yes X No City attorneys reviewed only the agenda statement and resolution language. RECOMMENDATION: geS 2Q%IA Authorize the City Manager to purchase from Valley Power Systems, Inc. for the components, including installation,supporting the relocation of two(2)EMD Generators,previously purchased from Arctic Pack, to be enclosed in the New Generator Building for an amount not to exceed$212,403.01,and establishing a contingency fund of$21,240.30 for a total of$233,643.31 and appropriating funds from account number 505-5052-5380.