HomeMy WebLinkAboutRes2021-101 CITY OF SEWARD,ALASKA Sponsored by: Bower
RESOLUTION 2021-101
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE
SEVEN ELECTRIC TRANSFORMERS IN AN AMOUNT NOT TO
EXCEED $4,800,000, WHICH INCLUDES A 15% CONTINGENCY, TO
HELP ENSURE SERVICE RELIABILITY FOR SEWARD RESIDENTS
AND BUSINESSES WHILE ALSO ALLOWING THE CITY TO MEET
FUTURE LOAD GROWTH,AND APPROPRIATING FUNDS
WHEREAS, there are six existing transformers needing to be replaced because they are
beyond their service life and their condition is poor and deteriorating; and
WHEREAS,an additional transformer is needed in a yet-to-be constructed substation near
the boat harbor to ensure enough system capacity to serve a new cruise ship dock; and
WHEREAS, some of the transformers may take up to 72 weeks for delivery; it's critical
to place the order as quickly as possible so they arrive in early 2023 and work can begin shortly
after their delivery; and
WHEREAS, the new transformers are part of an overall $19.4 million project to rebuild
the"backbone" of Seward's electric transmission system to help ensure service reliability for the
next 35 to 40 years.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The City Manager is hereby authorized to purchase seven new electric
transformers to improve service reliability and meet future load growth.
Section 2. Funding in the amount of$4,800,000 is hereby appropriated from Electric Fund
Reserves account no. 15000-0000-3400 to Electric Critical Infrastructure Project Fund account no.
15340-0000-8101.
Section 3.This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th
day of September, 2021.
CITY OF SEWARD, ALASKA
RESOLUTION 2021-101
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AYES: Baclaan, Osenga, DeMoss, McClure, Casagranda, S•
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
rends J. Ba110 , MC
City Clerk
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City Council Agenda Statement ' F M
Meeting Date: September 13, 2021 -
To: City Council
Through: Janette Bower, City Manager
From: Rob Montgomery, Electric Utility Manager
Agenda Item: Resolution 2021-101: Authorizing the City Manager to Purchase
Seven Electric Transformers in an Amount not to Exceed$4,800,000,
which includes a 15% contingency, to Help Ensure Service
Reliability for Seward Residents and Businesses While also Allowing
the City to Meet Future Load Growth, and Appropriating Funds
Background and justification:
Many of the transformers currently operating on Seward's electric transmission system are 40 years
old or older and are beyond their service life. As part of an effort to update and rebuild its electric
transmission system to improve service reliability and meet future system demand, the Electric
Department must replace six existing transformers and install one new transformer near the harbor:
0 Fort Raymond Substation - Two 10-MVAtransformers ($1.4M)
0 Lawing Substation - One 2.5 MVA transformer($565K)
0 Harbor Substation - One 12-MVA transformer; new substation to be constructed to serve
new cruise ship dock and future growth ($700K)
0 Primrose and Snow River- Two 1.25 MVA transformers ($1.13M)
0 One 1.25 MVA transformer to serve as a back-up for Primrose and Snow River($565K)
0 15% contingency ($440K)
With the supply chain for delivery expected to take 60-72 weeks for the larger transformers, it's
important that an order be placed as soon as possible so installation work can begin in
spring/summer of 2023. The existing transformers are in a deteriorating condition and could fail at
any time.
The new transformers are part of an overall $19.4-million project to rebuild the "backbone" of
Seward's electric transmission system. The transformers, along with the transmission system work
needed in targeted areas,are critical to service reliability in and around the city for the next 35 to 40
years.
Consistency checklist:
Comprehensive Plan: N/A
Fiscal note:
Funding from: Electric Fund Unassigned Fund Balance 15000-0000-3400
Finance Department approval: LA4
Attorney Review:
Yes ❑ No ❑ Not applicable �X
Recommendation
City Council approve Resolution 2021-101.