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HomeMy WebLinkAboutRes2006-027 I I I Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-27 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING EMERGENCY PURCHASES IN THE AMOUNT OF $1.1 MILLION RESULTING FROM A SIGNIFICANT AVALANCHE EVENT ON FEBRUARY 11, 2006, AND APPROPRIATING FUNDS WHEREAS, Seward and the surrounding vicinity experienced extreme winter weather conditions including heavy snows, ice, and wind; on February 9, 2006, disabling power lines supplying electricity to Seward and as a result, the City established generator power; and WHEREAS, a significant avalanche event occurred at Mile 21.5 of the Seward Highway on February 11, 2006, destroying approximately 2000 feet of transmission and distribution line, including five power pole structures; and WHEREAS, since February 9, 2006, the City has been running an average of four generators (five generators during the day, four at night), with each generator burning an average of 100 to 150 gallons of diesel per hour at a cost of approximately $2.21 per gallon; and WHEREAS, the unanticipated costs of this event are estimated to be at least $1.1 million, as follows: $700,000 cost of generating power minus the average energy costs prior to the emergency event; $300,000 cost of emergency repairs; and $100,000 emergency operating costs for supplies and generator parts; and WHEREAS, the City Manager and Mayor jointly issued a disaster declaration on February 24, 2006, seeking Borough, State, and Federal financial assistance to assist the City in funding the costs of responding to this disaster; and WHEREAS, Seward City Code ~6.10.120(2) and 6.10.120(3) exempt the City from the requirements of competitive procurement procedures where an emergency makes it unreasonable to delay the purchasing process in order to seek competitive bids. However, in seeking quotes from electric contractors qualified to handle repairs of this magnitude, the City did receive two separate price quotes and accepted the quote of the lowest bidder; and WHEREAS, the administration desires to inform the City Council of the status of these emergency purchases and costs to-date, and will provide a full listing of disaster-related expenditures upon receipt of bills, and hereby recommends an appropriation to cover the additional unbudgeted costs associated with this disaster. CITY OF SEWARD, ALASKA RESOLUTION 2006-27 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is hereby authorized to pay the costs incurred related to the Declaration of Local Emergency Disaster, declared February 24,2006. Section 2. Funds in the amount of $1.1 million are hereby appropriated from the Electric Enterprise Fund Retained Earnings account no. 501-0000-3050 to various Electric Enterprise Fund accounts (including contracted services, generator fuel, personnel, operating supplies) no. 501-5400-5XXX. Section 3. This resolution shall be effective immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of March, 2006. I THE CITY OF SEWARD, ALASKA I ~~. !:#- Vanta Shafer, Mayor AYES: NOES: ABSENT: ABSTAIN: Valdatta, Dunham, Lorenz, Schafer, Thomas, Bardarson, Shafer None None None ATTEST: ";\..' '" ~ ~ g II 'l',._, <,M.~.<(i.- 0 \~ S t7 t,.",~~" ",.) ..~~.. ,.,~ ofi...~flIloOll'~.' [,"':Y,I.''",., :(',. ,';' r~ "'0' 't;?O(".(':~ . . .."~., ..:.~ '-' ,I t:) V;j'~"'7 \....", ..... f:l ....i".& _____ .~(j .~, \~~I~ ~"J : ~ ~ ~ '~ . C'1~-"'~ '''A'T . ."i : ~ (;) i u ..:......." 'A~.u i 0 :1 ,\ .. --...- It!'~ . ~ e.. 0&0 :~ ,) ""V... ~",< . .,\ ".,'..... '~..v,~,~ '\t').~" Q' (\,?, -1 ;.-:~... Jo,I",,,,.,;,.,,: 1~ :...~....,._ .,-1 ~ ,"~~ ;k:.t~... 1I""flI:OO' "."~_)"'" ,f . '. .; ~ ~. ~:,! _ d~,: ' I Council Agenda Statement Meeting Date: March 13, 2006 To: Clark Corbridge, City Manager From: Kristin Erchinger, Finance Director Agenda Item: Authorizing emergency purchases related to the Avalanche Disaster and appropriating funds BACKGROUND & JUSTIFICATION: Seward and the surrounding vicinity experienced extreme winter weather conditions including heavy snows, ice, and wind; on February 9, 2006, disabling power lines supplying electricity to Seward and as a result, the City established generator power. This winter storm resulted in a significant avalanche event at Mile 21.5 of the Seward Highway on February 11, 2006, destroying approximately 2000 feet of transmission and distribution line, including five power pole structures. Since February 9, 2006, the City has been running an average of four generators (five generators during the day, four at night), with each generator burning an average of 100 to 150 gallons of diesel per hour at a cost of approximately $2.21 per gallon. The unanticipated costs of this event are estimated to be at least $1.1 million, as follows: $700,000 cost of generating power minus the average energy costs prior to the emergency event; $300,000 cost of emergency repairs; and $100,000 emergency operating costs for supplies and generator parts. The City Manager and Mayor jointly issued a disaster declaration on February 24, 2006, seeking Borough, State, and Federal financial assistance to assist the City in funding the costs of responding to this disaster, but it remains to be seen whether the City will receive financial assistance. The administration was unable to receive prior approval from Council for emergency purchases in excess of $10,000 due to the urgent nature of the disaster response, and necessary repairs. Seward City Code §6.10.120(2) and 6.10.120(3) exempt the City from the requirements of competitive procurement procedures where an emergency makes it unreasonable to delay the purchasing process in order to seek competitive bids. However, in seeking quotes from electric contractors qualified to handle repairs of this magnitude, the City did receive two separate price quotes and accepted the quote of the lowest bidder. The administration will provide a full listing of disaster-related expenditures upon receipt of bills, and recommends an appropriation to cover the additional unbudgeted costs associated with this disaster. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Resolution 2006- Approving Avalanche Disaster-Related Emergency Purchases PageTwo FISCAL NOTE: At this time the Electric Enterprise Fund is absorbing the costs of this avalanche event, until such time as it is determined whether a portion of disaster costs will be reimbursed by State or Federal agencies. A decision on whether or not to pass a portion of these costs along to customers will be delayed until after a determination has been made relative to potential disaster funding assistance. Approved by Finance Department: RECOMMENDATION: Council approve Resolution 2006-___ authorizing the City Manager to pay costs incurred related to the Declaration of Local Emergency Disaster, declared February 24, 2006, and appropriating funding in the amount of $1.1 million.