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Home My WebLink AboutRES2025-104 SEL Engineering Services & Northern Powerline Constructors - Spring Crekk Substation1 1 1 Sponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2025-104 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT THE PROPOSAL FROM SEL ENGINEERING SERVICES INC AND NORTHERN POWERLINE CONSTRUCTORS INC FOR THE SPRING CREEK SUBSTATION REBUILD PROJECT IN AN AMOUNT NOT TO EXCEED $5,381,452.38 WHEREAS, the City of Seward Electric Department issued a Request for Proposals (RFP) for the Spring Creek Substation Rebuild Project, intended to modernize aging infrastructure and support the transition of Seward's transmission system from 69 kV to 115 kV; and WHEREAS, the project scope includes replacing three reclosers, constructing oil containment pits for each transformer, replacing the control building, upgrading relay protection, installing a new grounding system, and integrating with the City's SCADA network; and WHEREAS, three proposals were received and evaluated based on qualifications, experience, cost, and project schedule; and WHEREAS, the design -build team of SEL Engineering Services, Inc. (SEL) and Northern Powerline Constructors, Inc. (NPC) provided the most comprehensive proposal, offering the best combination of project timeline, technical quality, and value at a total proposed price of $4,139,578.75; and WHEREAS, SEL and NPC conducted a pre -bid site visit to the Spring Creek Substation and identified opportunities to optimize the design and reduce overall construction costs through strategic equipment reuse and layout adjustments; and WHEREAS, this partnership offers a fully integrated engineering, procurement, and construction solution —combining SEL's national substation engineering expertise with NPC's Alaskan construction experience —to ensure high -quality delivery and local capability; and WHEREAS, the proposed project schedule allows substantial completion prior to December 31, 2026, maintaining the City's timeline for the 69 kV to 115 kV conversion and ensuring readiness for the 2027 .Shore Power Substation project; and WHEREAS, due to the engineering phase dictating final construction design and material specifications, a 30 percent contingency is recommended to accommodate potential adjustments, bringing the total project authorization to $5,381,452.38; and CITY OF SEWARD, ALASKA RESOLUTION 2025-104 WHEREAS, this capital project represents a critical investment in the reliability, safety, and capacity of the City's electrical infrastructure, directly supporting essential industrial and community loads, including the Spring Creek Correctional Center, JAG Industrial Ship Center, and the SMIC Industrial Area. 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 accept the proposal from SEL Engineering Services, Inc and Northern Powerline Constructors, Inc. for the Spring Creek Substation Rebuild Project in an amount not to exceed $5,381,452.38, which includes a 30 percent contingency. Section 2. Funding for this project in the amount of $5,381,452.38, with the 30% contingency, shall be derived from the Electric Enterprise Fund Capital Project 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 17th day of November 2025. THE CITY OF SEWARD, ALASKA atiStt YL ei Sue McClure, Mayor AYES: Barnwell, Crites, Osenga, Calhoon, Draper, McClure NOES: None ABSENT: Warner ABSTAIN: None ATTEST: Kris Peck City Clerk (City Seal) 1 1 1 City Council Agenda Statement Meeting Date: October 27, 2025 To: City Council Through: Kat Sorensen, City Manager From: Taylor Crocker, Electric Operations Supervisor Subject: Resolution 2025-1004: Authorizing the City Manager to Accept the Proposal from SEL Engineering Services Inc and Northern Powerline Constructors Inc for the Spring Creek Substation Rebuild Project in an Amount Not to Exceed $5,381,452.38 Background and justification: The Spring Creek Substation serves as a critical power hub for the Seward area, including the state correctional facility and key industrial customers. The existing infrastructure requires modernization to meet reliability and safety standards and to support the City's transmission upgrade from 69 kV to 115 kV. The design -build team of SEL Engineering Services, Inc. and Northern Powerline Constructors, Inc. provided the strongest proposal, demonstrating extensive substation design and construction experience across Alaska. Their pre -bid evaluation identified design optimizations to reduce overall costs and improve constructability. The partnership ensures seamless coordination between engineering and field execution, accelerating completion before 2027 to align with the upcoming Shore Power Substation Project. The total authorization of $5,381,452.38 includes a 30 percent contingency for design -driven adjustments during the engineering phase. This project is essential to maintain system reliability, expand future capacity, and meet Seward's long-term energy infrastructure goals. This project is critical to maintaining the construction schedule for the 115kV Shore Power Substation, slated for completion in 2027, and is a major milestone in modernizing Seward's electric infrastructure to support economic development, port electrification, and renewable integration. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: X Other: Certification of Funds Total amount of funds listed in this legislation: $ 5,381,452.38 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 (✓): Budgeted Line item(s): Not budgeted Not applicable $ 5,381,452.38 $ Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other X Electric Water $ Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: 561- 966Atitil X Yes Attorney Signature: Not applicable Comments: Administration Recommendation X Adopt Resolution Other: