HomeMy WebLinkAboutRes2022-034 Purchase Electric Distribution Materials CITY OF SEWARD,ALASKA Sponsored by: Bower
RESOLUTION 2022-034
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE
ELECTRIC DISTRIBUTION MATERIALS (FUSES, WIRE, CONDUIT
AND OTHER MISCELLANEOUS MATERIALS) FROM ANIXTER
POWER SOLUTIONS TO ENSURE ADEQUATE INVENTORY FOR THE
UPCOMING SPRING/SUMMER/FALL CONSTRUCTION SEASON IN A
NOT-TO-EXCEED AMOUNT OF $87,050, INCLUDING 10%
CONTINGENCY
WHEREAS, each year during the first quarter, the Electric Department orders
materials in preparation for the upcoming construction season to ensure adequate inventory
to meet expected service orders; and
WHEREAS,the order typically includes materials for distribution such as fuses,wire,
conduit and other miscellaneous materials; and
WHEREAS,the rising cost of these materials has more than doubled over the past year
111 and are now above the $30,000 threshold requiring City Council approval; and
WHEREAS, in 2021, Electric Department crews completed 62 service-related jobs,
including 12 solar interconnections; and
WHEREAS, without these materials, Electric Department crews will be unable to
complete all job orders projected for the upcoming season.
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 electric distribution
materials from Anixter Power Solutions for the upcoming construction season in a not-to-exceed
amount of$87,050, including a 10%contingency.
Section 2. is hereby appropriated from the Electric Enterprise Fund to be reimbursed upon
issuance of the approved Electric Revenue Bond designated for this project.
Section 3.This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska,this 14`'
Iday of March, 2022.
CITY OF SEWARD, ALASKA
RESOLUTION 2022-034
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AYES: Calhoon, Wells, Casagranda, DeMoss, McClure, Terry
NOES: None
ABSENT: Osenga
ABSTAIN: None
ATTEST:
Brenda J. Ba110 , MMC
City Clerk
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City Council Agenda Statement
Meeting Date: March 14, 2022
To: City Council
Through: Janette Bower, City Manager
From: Rob Montgomery, General Manager - Electric
Agenda Item: Resolution 2022-034: Authorizing the City Manager to Purchase Electric
Distribution Materials (Fuses, Wire, Conduit and other Miscellaneous
Materials) From Anixter Power Solutions to Ensure Adequate Inventory for
the Upcoming Spring/Summer/Fall Construction Season in a not-to-exceed
amount of $87,050, Including 10% Contingency
Background and justification:
Each year during the first quarter, the Electric Department orders materials in preparation for the
upcoming construction season. The order typically includes materials related to distribution service:
fuses, wire, conduit and other miscellaneous materials.
In previous years, orders for these materials were below the $30,000 threshold for City Council
approval. Unfortunately, due to a variety of reasons (i.e., the pandemic, high customer demand,
supply chain delays and inflation),the price for the materials has more than doubled and has easily
exceeded the threshold previously noted.
In 2021, the department processed 62 service-related jobs, including 12 solar interconnections.
Without these materials, Electric Department crews will be unable to complete all job orders
projected for the upcoming season.
Also, as it does every year, the department will exhaust the small inventory of materials carried
over from the previous year during the early part of the construction season.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive 3.7.1.4 "Continue to upgrade and expand utilities to meet existing needs and
Plan: encourage future development."
Strategic Plan:
Other:
Certification of Funds
Total amount of funds listed in this legislation: $ 0
This legislation (✓):
X Creates revenue in the amount of: $ TBD — based on load of new hookups
X Creates expenditure in amount of: $ 87,050 including a 10% contingency
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (✓):
X Budgeted Line item(s): 3000-7215 (Operating Supplies)
Not budgeted
Not applicable
Unassigned Fund Balance and Available Unrestricted Cash Balance Information
Fund (✓):
General SMIC Electric Wastewater
Boat Harbor Parking F1 Water F1 Healthcare
Motor Pool Other
Unassigned Fund Balance*: $ *unaudited numbers
Available Unrestricted Cash Balance*: $
Finance Signature:
Attorney Review✓ Administration Recommendation
RYes X Adopt Resolution
X Not applicable Other: