HomeMy WebLinkAboutRES2023-015 Purchase Transformers Sponsored by: Bower
CITY OF SEWARD,ALASKA
RESOLUTION 2023-015
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE SIX
115KV VOLTAGE TRANSFORMERS FROM INSTRUMENT
TRANSFORMER EQUIPMENT CORPORATION (ITEC) IN THE
AMOUNT OF $67,122, PLUS A 10% CONTINGENCY FOR
INSTALLATION IN THE FORT RAYMOND SUBSTATION, AND
APPROPRIATING FUNDS
WHEREAS, Instrument Transformer Equipment Corporation(ITEC) was selected as the
preferred vendor for the transformers following outreach to three vendors; and
WHEREAS, ITEC provided the lowest bid while also meeting all operational
specifications; and
WHEREAS,the new transformers are necessary to upgrade the voltage capability of
the Fort Raymond Substation from 69kV to 115kV as part of the overall infrastructure rebuild
planned for the City over the next 2-4 years; and
WHEREAS, the six new 115kV voltage transformers will replace the four existing
69kV transformers located in the Fort Raymond Substation; and
WHEREAS,the new voltage transformers can continue to operate at 69kV until customer
demand or system load necessitates a move to the higher voltage capacity.
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 six 115kV transformers for the
Fort Raymond Substation from Instrument Transformer Equipment Corporation to replace the
existing 69kV transformers and increase the substation's voltage capacity.
Section 2. Funding in the amount of $67,122 plus a 10% contingency is hereby
appropriated from the System Infrastructure Project budget via the approved Revenue Bond
Electric Fund 15000-0000-3710 transferred to 15340-0000-3700 Electric reserves account
appropriated in to15340-0000-8103 Capital Equipment Account.
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 February, 2023.
CITY OF SEWARD, ALASKA
RESOLUTION 2023-015
THE CITY OF SEWARD, ALASKA
C'�,uJrCii re
Sue McClure, Mayor
AYES: Osenga, Finch, DeMoss, Calhoon, Wells, McClure
NOES: None
ABSENT: Barnwell
ABSTAIN: None
ATTEST:
renda J. Ba 1 , C
City Clerk
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City Council Agenda Statement
Meeting Date: February 13, 2023
To: City Council
Through: Janette Bower, City Manager
From: Rob Montgomery, General Manager - Electric
Agenda Item: Resolution 2023-015: Authorizing the City Manager to Purchase Six 115kV
Voltage Transformers from Instrument Transformer Equipment Corporation
(ITEC) in the Amount of$67,122 plus a 10% contingency for Installation in
the Fort Raymond Substation and Appropriating Funds
Background and justification:
In 2022, a $10 million revenue bond was approved to complete work over the next 2-4 years to
replace aging transmission infrastructure in Seward and upgrade the system's voltage capacity from
69kV to 115kV. Part of this project includes substation upgrades across the system, including the
replacement of the older 69kV voltage transformers located inside the Fort Raymond Substation.
The work on the substation is expected to begin this summer or early fall, depending upon the
supply chain.
The Electric Department reached out to multiple vendors before receiving bids. ITEC was able to
meet the requested specifications and also provided the lowest bid.
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: $ $67,122 plus a 10% contingency
This legislation (✓):
Creates revenue in the amount of: $
X Creates expenditure in amount of: $ $67,122 plus a 10% contingency
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (✓):
Budgeted Line item(s): 15340-0000-8103
X Not budgeted
Not applicable
131
Fund Balance Information
Affected Fund (✓):
General SMIC N
Electric Wastewater
Boat Harbor ParkingWater Healthcare
Motor Pool Other
Note: amounts are unaudited
Fund Balance/Net position — restricted $ 9,486,364
Fund Balance/Net position — unrestricted/unassigned $ 7,426,000
Available Unrestricted Cash Balance: $ 16,086,334
Finance Signature: %
j
Attorney Review
FYes Attorney Signature:
Not applicable Comments:
Administration Recommendation
xeApprove Resolution
Other:
132