HomeMy WebLinkAboutRES2026-072 Electric Power Systems - Fort RaymondSponsored by: Sorensen
CITY OF SEWARD, ALASKA
RESOLUTION 2026-072
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,
AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH
ELECTRIC POWER SYSTEMS, INC. FOR PRELIMINARY ENGINEERING AND
DESIGN SERVICES FOR GENERATING UNITS 3 AND 6 AT THE FORT RAYMOND
POWER PLANT FOR AN AMOUNT NOT TO EXCEED $47,750 AND APPROPRIATING
FUNDS
WHEREAS, the Fort Raymond Power Plant is an important generation resource during periods
of regional energy supply constraints and provides the City of Seward with approximately 12
megawatts of generation capability available for export to the Alaska Railbelt electrical grid; and
WHEREAS, anticipated Cook Inlet natural gas supply constraints have increased regional interest
in using available diesel generation resources to conserve natural gas reserves and support the
reliability of the Railbelt electrical system; and
WHEREAS, while the Fort Raymond generating units remain in good operating condition,
sustained operation of Units 3 and 6 would benefit from upgrades to the existing DC backup,
starting, charging, and control systems to improve reliability during prolonged generation runs;
and
WHEREAS, Electric Power Systems, Inc. (EPS) has submitted a proposal for $45,476 to perform
a site investigation and preliminary engineering for proposed upgrades to Units 3 and 6; and
WHEREAS, accepting this proposal with a 5% contingency for an amount not to exceed $47,750,
will allow the City to evaluate and prepare the Fort Raymond Power Plant for sustained generation
and potential power sales to the Railbelt.
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
Electric Power Systems, Inc. for preliminary engineering and design services associated with the
DC systems for Generating Units 3 and 6 and the Unit 3 control cabinet at the Fort Raymond
Power Plant.
Section 2. Funding in the amount not to exceed $47,750, consisting of the EPS proposal amount
of $45,476 plus a five percent contingency of $2,274 for a total of $47,750, is hereby appropriated
and transferred from the Electric Fund Unassigned account 15000-0000-3400 to the Electric
Department Capital Work Order Outlay Infrastructure Expense Account 15000-3007-8101.
CITY OF SEWARD, ALASKA
RESOLUTION 2026-072
Page 2 of 2
Section 3. The City Manager is authorized to execute all documents necessary to complete the
work contemplated by the EPS proposal and to administer the authorized contingency as necessary
to address unforeseen engineering requirements within the approved project scope.
Section 4. This resolution shall take effect immediately upon adoption.
APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 24'h
DAY OF AUGUST 2026.
Sue McClure, Mayor
AYES: Osenga, Calhoon, Barnwell, Crites, Warner, Draper, McClure
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Kris Peck
City Clerk
City Council Agenda Statement
Meeting Date: August 24, 2026
To: City Council
Through: Kat Sorensen, City Manager
From: Taylor Crocker, Electric Operations Manager
Subject: Resolution 2026-072: Authorizing the City Manager to Enter into an
Agreement with Electric Power Systems, Inc. for Preliminary Engineering
and Design Services for Generating Units 3 and 6 at the Fort Raymond
Power Plant for an Amount Not to Exceed $47,750 and Appropriating Funds
Background and justification:
Cook Inlet natural gas supply constraints have become an increasing concern for utilities
throughout the Alaska Railbelt. As utilities evaluate measures to conserve available natural gas
reserves and maintain reliable electric service, there is growing interest in utilizing alternative
generation resources that can reduce reliance on natural gas -fired generation when necessary.
The City of Seward is uniquely positioned to assist with this regional need through the Fort
Raymond Power Plant. The plant's diesel generating units provide the City with the capability to
export approximately 12 megawatts of generation to the Railbelt grid. This resource could provide
additional generation capacity during periods when conserving Cook Inlet natural gas supplies is
particularly important.
The Fort Raymond generating units are currently in good operating condition; however, the plant
was not designed around the expectation of frequent, prolonged generation for regional power
sales. In preparation for the possibility of sustained operation, the Electric Department has
identified improvements to the DC backup, starting, charging, and control systems associated with
Generating Units 3 and 6.
Electric Power Systems, Inc. (EPS) has proposed preliminary engineering and design services to
evaluate these improvements. Because accurate drawings of portions of the existing system are
limited and space for replacement equipment is constrained, EPS will conduct an on -site
investigation to document existing conditions and obtain the measurements necessary to properly
design the improvements. The work will include preliminary DC design drawings for Units 3 and
6 and construction drawings for a replacement Unit 3 control cabinet. This engineering will allow
the City to obtain an accurate estimate of the construction costs before proceeding with the
physical upgrades.
EPS has proposed completing this work for an amount not to exceed $45,476. Administration
City Council Agenda Statement
recommends authorizing an additional 5% contingency of $2,274, for a total of $47,750.
Completing this engineering now positions the City to respond to potential requests for generation
support from other Railbelt utilities and provides a clear path toward improving the long-term
reliability of the Fort Raymond Power Plant. If the City proceeds with the improvements and
operates the plant for regional power sales, revenues from those sales can help offset a portion of
the costs associated with upgrading and maintaining the generating units.
Fiscal Impact:
Funding Source:
X
X
Fiscal Impact
Yes — Amount: $47,750 Budgeted:
No
General Fund:
Enterprise Fund:
Grant:
Other:
Finance Director Signature:
X
Yes
No
N/A
15000-3007-8101
s
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan:
Strategic Plan:
Other:
X
Yes
Attorney Signature:
Not applicable Comments:
Administration Recommendation
X
Approve
Other: