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HomeMy WebLinkAboutRES2025-024 Electric MaterialsSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2025-024 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE CONSTRUCTION MATERIAL FOR THE ELECTRIC DEPARTMENT FOR THE NASH ROAD PHASE II PROJECT WHEREAS, the City of Seward Electric Department is undertaking the Nash Road Phase 2 project to upgrade the final stretch of 69kV transmission to 115kV transmission in preparation for the future conversion of the entire City of Seward -owned transmission system to 115kV; and WHEREAS, the necessary construction materials, including poles, insulators, and conductors, have been identified as critical components for the project, with long lead times requiring advanced procurement; and WHEREAS, the only two suppliers in Alaska, Anixter and General Pacific, submitted quotes for these materials, with General Pacific providing the lowest pricing for the materials; and WHEREAS, the total cost for these materials is $378,864.83, with an additional 10% shipping cost of $37,886.00, bringing the total expenditure to $416,750.83; and WHEREAS, ensuring timely procurement of these materials is essential to maintaining the project schedule and avoiding delays in the transmission system upgrade. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Council authorizes the City Manager to approve the purchase of poles, insulators and conductors from General Pacific for a total cost of $416,750.83, including shipping. Section 2. The funding for this purchase is hereby approved and appropriated from the Electric Department's MRRF (Major Repair and Replacement Fund) Capital Equipment account 15001-0000-8103. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 10th day of March 2025. THE CITY OF SEWARD, ALASKA Joga, Vice Mayor CITY OF SEWARD, ALASKA RESOLUTION 2025-024 Page2of2 AYES: Wells, Crites, Barnwell, Warner, Finch, Osenga NOES: None ABSENT: McClure ABSTAIN: None ATTEST: Kris Peck City Clerk (City Seal) ♦.*'.''�SE�Wq , F •. : • z —- �•= r = SE - • • tti a • #''•.;'q 'E OF P 1 1 City Council Agenda Statement Meeting Date: March 10, 2025 To: City Council Through: Kat Sorensen, City Manager From: Taylor Crocker, Electric Operations Supervisor Subject: Resolution 2025-024: Authorizing the City Manager to Purchase Construction Material for the Electric Department for the Nash Road Phase II Project Background and justification: The Nash Road Infrastructure Upgrade Project is a critical component of the City of Seward's long-term electric system improvement plan. This project will upgrade the final section of 69kV transmission to 115kV transmission, allowing for the eventual conversion of the entire City -owned transmission system to 115kV. This upgrade is necessary to support future system growth, improve reliability, and ensure compliance with anticipated energy demands A key driver of this project is the Shore Power Substation, which will require a 115kV transmission feed by the summer of 2027. Without this upgrade, the City will be unable to meet the power requirements of this critical infrastructure. Ensuring that transmission capacity is upgraded in time is essential for maintaining reliable service and accommodating future expansion. Due to long lead times on essential materials, the City must proactively procure the necessary infrastructure components well in advance. Specifically, poles, insulators, and a conductor have been identified as long lead time items required for this project. To secure these materials, the City solicited bids from the only two suppliers in Alaska that provide these materials. After reviewing the bids, it was determined that General Pacific offered the most cost-effective pricing for poles conductors, and insulators. The total cost for these materials is $378,864.83, with an additional 10% shipping cost of $37,886.00, bringing the total expenditure to $416,750.83. By securing these materials now, the City will mitigate the risk of project delays due to supply chain constraints and ensure that construction can proceed as scheduled. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Total amount of funds listed in this legislation: $ 416,750.83 This legislation: Creates revenue in the amount of: Creates expenditure in amount of: Creates a savings in the amount of: Has no fiscal impact X Funds are: X $ $ 416,750.83 $ Budgeted Line item(s): 15001-0000-8103 Not budgeted Not applicable Affected Fund: General Boat Harbor Motor Pool X Available Fund Balance SMIC Parking Other X Yes Electric Water MRRF Attorney Signature: Not applicable Comments: $ Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: Attorney Review Sa, 944t444' Administration Recommendation X Adopt Resolution Other: