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Home My WebLink AboutRES2026-051 Sturgeon Electric - BoringSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2026-051 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH STURGEON ELECTRIC FOR BORING SUPPORT SERVICES FOR SUMMER 2026 CONSTRUCTION PROJECTS IN AN AMOUNT NOT TO EXCEED $210,540 AND APPROPRIATING FUNDS WHEREAS, the City of Seward Electric Department has multiple planned construction and system improvement projects scheduled for the 2026 summer construction season requiring underground conduit installation; and WHEREAS, directional boring is necessary to safely and efficiently install underground electric infrastructure in areas where open trenching is not feasible due to roadway, environmental, or infrastructure constraints; and WHEREAS, Sturgeon Electric has provided a cost proposal for boring services at a daily rate of $9,925, with a total estimated cost of $210,540 for up to 21 days of work; and WHEREAS, Sturgeon Electric was selected for this work for Resolution 2025-066, because they are currently the only electric line contractor available to the City of Seward with the specialized boring equipment required to perform this work; and WHEREAS, some of the work performed under this agreement will support customer -driven projects, and in those cases, the City will recover associated costs through customer estimates and payments; and WHEREAS, authorizing this work ensures the Electric Department can complete critical infrastructure projects efficiently during the limited construction season while maintaining flexibility to respond to customer service needs. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA: Section 1. The City Council hereby authorizes the City Manager to enter into an agreement with Sturgeon Electric for boring support services for up to 21 days, in an amount not to exceed $210,540. Section 2. Funding in the amount of $210,540 is hereby transferred and appropriated for the Electric Enterprise Fund Unassigned 15000-0000-3400 to 15000-3007-7009 contracted services account to support this work. Section 3. This resolution shall take effect immediately upon adoption. CITY OF SEWARD, ALASKA RESOLUTION 2026-051 Page 2 of 2 APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 11TH DAY OF MAY 2026. Sue McClure, Mayor AYES: Warner, Barnwell, Crites, Draper, Calhoon, McClure NOES: None ABSENT: Osenga ABSTAIN: None ATTEST: Kris Peck City Clerk City Council Agenda Statement Meeting Date: May 11, 2026 To: City Council Through: Kat Sorensen, City Manager From: Taylor Crocker, Electric Department Subject: Resolution 2026-051: Authorizing the City Manager to Enter into an Agreement with Sturgeon Electric for Boring Support Services for Summer 2026 Construction Projects in an Amount Not to Exceed $210,540 and Appropriating Funds Background and justification: The City of Seward Electric Department is preparing for the 2026 summer construction season, which includes a combination of planned system improvements, reliability upgrades, and new customer service installations. Many of these projects require the installation of underground conduit in areas where traditional trenching methods are not feasible due to roadway crossings, existing infrastructure, environmental considerations, or limited right-of-way access. Directional boring provides a safe, efficient, and minimally invasive method for installing underground electric infrastructure while reducing impacts to roadways, drainage systems, and surrounding property. Given Seward's terrain, developed corridors, and environmental sensitivities, boring is a critical construction method that allows the Electric Department to complete projects while maintaining compliance with permitting requirements and minimizing restoration costs. Sturgeon Electric has provided a proposal for boring services at a daily rate of $9,925, with an estimated total cost of $210,540 for up to 21 days of work. This pricing is consistent with specialized equipment and operator requirements in Alaska and reflects current market conditions. Sturgeon Electric is currently the only contractor available to the City with the necessary electric utility experience and dedicated boring equipment capable of supporting these projects within the required timeframe. This authorization provides operational flexibility for the Electric Department to utilize boring services across multiple projects throughout the construction season. This includes both utility - driven infrastructure work and customer -driven service extensions. For customer -driven projects, the cost of boring will be incorporated into project estimates and recovered through customer payments, ensuring that the financial impact to the Electric Fund is minimized. Approving this resolution ensures that the Electric Department can execute planned capital improvements, respond to customer requests in a timely manner, and take full advantage of the limited construction season. Without this authorization, project timelines would be delayed, costs could increase due to remobilization or missed construction windows, and the Department's ability to provide reliable and efficient service would be negatively impacted. Staff recommends approval of this resolution to support continued investment in system reliability, customer service, and efficient project delivery. 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: This legislation (✓): Creates revenue in the amount of: Creates expenditure in the amount of: Creates a savings in the amount of: x Has no fiscal impact Funds are (✓): Budgeted Line item(s): 15000 3007 7009 0000 00000 X $ 210,540 Not budgeted Not applicable Affected Fund (V): General Boat Harbor Motor Pool SMIC Parking Other Estimated Net Position as of 04/30/26 x Electric Water Yes Attorney Signature: Not applicable Comments: Wastewater Healthcare Note: amounts are unaudited $ (82,263) Finance Director Signature: Administration Recommendation X J Adopt Resolution 1 Other: