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Home My WebLink AboutRES2025-066 Sturgeon Electric Directional Boring Servicesf Sponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2025-066 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT THE PROPOSAL WITH STURGEON ELECTRIC FOR DIRECTIONAL BORING SERVICES TO SUPPORT CITY ELECTRIC DEPARTMENT WORK ORDERS AND PROJECTS IN THE AMOUNT OF $111,475 WITH A 30% CONTINGENCY, NOT TO EXCEED $144,917.50 WHEREAS, the City of Seward Electric Department has identified multiple system improvement projects that require directional boring services, including cable replacements and converting overhead to underground power lines; and WHEREAS, several of these projects require bores in locations that are inaccessible by excavator, such as highway and railroad crossings; and WHEREAS, the Electric Department was able to secure a boring crew from Sturgeon Electric at a daily rate of $9,325.00 per day and anticipates utilizing the crew for approximately two weeks, resulting in an estimated base cost of $111,475.00; and WHEREAS, an additional 30% contingency, or $33,442.50, is being requested to allow flexibility in completing customer -driven job orders requiring boring services, if time allows; and WHEREAS, the total projected cost for these boring services is $144,917.50. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Council hereby authorizes the City Manager to contract with Sturgeon Electric for directional boring services in an amount not to exceed $144,917.50. Section 2. Funding in the amount of $144,917.50 is hereby appropriated from the Electric Enterprise Fund Work Orders department contracted services account (15000-3007-7009) to support this work. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 14th day of July 2025. THE CITY OF SEWARD, ALASKA .t.u)tk`YtcCPti. r., Sue McClure, Mayor CITY OF SEWARD, ALASKA RESOLUTION 2025-066 AYES: Warner, Barnwell, Wells, Crites, Finch, Osenga, McClure NOES: None ABSENT: None ABSTAIN: None Kris Peck City Clerk (City Seal) [1 City Council Agenda Statement Meeting Date: July 14, 2025 To: City Council Through: Kat Sorensen, City Manager From: Taylor Crocker, Electric Operations Supervisor Subject: Resolution 2025-066: Authorizing the City Manager to Accept the Proposal with Sturgeon Electric for Directional Boring Services to Support City Electric Department Work Orders and Projects in the Amount of $111,475 with a 30% Contingency, Not to Exceed $144,917.50 Background and justification: The City of Seward Electric Department has several critical system improvement projects scheduled for completion before winter, including the conversion of overhead lines to underground, and the replacement of aging underground cable. Many of these projects are in areas where traditional excavation is not feasible, such as highway and railroad crossings. Directional boring is the only viable method in these locations. The Electric Department has secured availability from Sturgeon Electric, a qualified contractor, to provide boring services at a daily rate of $9,325.00. The crew will be available for approximately two weeks, with a projected base cost of $111,475.00. To allow for additional customer -driven job orders that may arise during this period, an additional 30% contingency is requested, bringing the total not -to -exceed amount to $144,917.50. This resolution authorizes the City Manager to contract with Sturgeon Electric for boring services, ensuring that essential infrastructure projects are completed efficiently and safely prior to winter weather conditions. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 144,917.50 This legislation (✓): X Creates revenue in the amount of: Creates expenditure in amount of: Creates a savings in the amount of: Has no fiscal impact Funds are (✓): X $ 144,917.50 $ Budgeted Line item(s): 15000 3007 7009 — Work Orders: Contracted Services Not budgeted Not applicable Fund Balance Information Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other X Electric Water $ Wastewater Healthcare Note: amounts are unaudited Acting Finance Director Signature:/1"--"------- X Yes Attorney Signature: Not applicable Comments: Administration Recommendation X Adopt Resolution Other: STURGEON ELECTRIC 1301 E. 64th Ave. Anchorage, Ak. 99518 Seward Electric 238 5th Ave Seward, AK 99664 Estimated Price for Boring ATTN: Taylor Crocker Seward Electric SHALL COMPENSATE THE CONTRACTOR AT THE LABOR AND EQUIPMENT RATES SPECIFIED BELOW RATES VALID UNTIL 3.31.2026 Lodging will be billed at cost plus 10% RATE I EXTENDED UNIT PRICE Material Price and Haul to site locations 1 $ 8,900.00 $ 8,900.00 Daily Boring Rate $9,325/Day 11 $ 9,325.00 $ 102,575.00 Boring Rate is based on a 12 hr day for 2 operators all equipment and tooling TOTAL Estimated Labor, Equipment, and Material $ 111,475.00 MATERIAL / OTHER COSTS COST 10% Lodging $ - $0.00 $ - $ - $0.00 $ - TOTAL MATERIAL OR OTHER COSTS $ - $0.00 $ - TOTAL COST $ - $0.00 $ 111,475.00 Josh Henrick Josh Milla GENERAL FOREMAN Project Manager Jhenrick a(�,myrgroup.com jmilla@myrgroup.com CELL: 907.617.3186 CELL: 907.371.0510 FAX: 522.2068 STURGEON ELECTRIC 1301 E. 64th Ave. Anchorage, Ak. 99518 Seward Electric 238 5th Ave Seward, AK 99664 3 man crew rate ATTN: Taylor Crocker Seward Electric SHALL COMPENSATE THE CONTRACTOR AT THE LABOR AND EQUIPMENT RATES SPECIFIED BELOW RATES VALID UNTIL March 31, 2026 LODGING WILL BE BILLED AT COST + 10%, UNLESS PROVIDED Qty RATE 1 PER HOUR HOURS EXTENDED UNIT PRICE Foreman ST 1 $ 172.50 40.00 $ 6,900.00 Foreman DT 1 $ 269.50 10.00 $ 2,695.00 Journeyman ST 1 $ 161.00 40.00 $ 6,440.00 Journeyman DT 1 $ 248.75 10.00 $ 2,487.50 Apprentice ST 1 $ 144.25 40.00 $ 5,770.00 Apprentice DT 1 $ 217.50 10.00 $ 2,175.00 $ - MANHAUL 1 $ 34.00 50.00 $ 1,700.00 BUCKET TRUCK 1 $ 57.00 50.00 $ 2,850.00 MINI EXCAVATOR WITH TRAILER $ 42.00 $ - DIGGER/AUGER TRUCK 1 $ 59.00 50.00 $ 2,950.00 PULLER / TENSIONER $ 45.00 $ - FLATBED TRUCK $ 29.00 $ - TOTAL LABOR & EQUIPMENT $ 33,967.50 MATERIAL / OTHER COSTS COST 10% HOURS Lodging $ - $0.00 $ - $ - $0.00 $ - TOTAL MATERIAL OR OTHER COSTS $ - $0.00 $ - TOTAL COST $ $0.00 $ 33,967.50 Josh Henrick Josh Milla GENERAL FOREMAN Project Manager Jhenrick@myrgroup.com jmilla@myrgroup.com CELL: 907.617.3186 CELL: 907.371.0510 FAX: 522.2068