HomeMy WebLinkAboutRes2008-028Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2008-028
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO
ENTER INTO A PURCHASE AGREEMENT WITH POTELCOM
SUPPLY FOR TWO 500 KVA TRANSFORMERS, FOR A TOTAL
AMOUNT NOT-TO-EXCEED $48,760.00
WHEREAS, the Electric Department needs two large transformers for projects at the
Harbor; and
WHEREAS, the cost of each transformer exceeds $10,000.00 and SCC 6.10 requires a
competitive process and Council approval; and
WHEREAS, the City Manager approved the process ofprocurement other than through the
use of competitive sealed bids, and such written approval occurred prior to soliciting quotes from the
city's regular vendors; and
WHEREAS, the City Manager notified the council of his decision to use a procedure other
than competitive sealed bids; and
WHEREAS, the cost of the transformers will be recovered through work order charges to
customers; and
WHEREAS, the Electric Department requested quotes from regular suppliers and
received three quotes which met the requested size specifications those quotes were evaluated based
on initial cost, overall cost of operation and delivery times.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA THAT:
Section 1. The City Manager is authorized to enter into an agreement with Potelcom supply
to purchase two 500 KVA transformers for a price not-to-exceed $48,760.00 from Account 501-
5300-5440.
Section 2. This resolution shall take affect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 14th
day of Apri12008.
CITY OF SEWARD, ALASKA
RESOLUTION 2008-028
THE CITY OF SEWARD, ALASKA
Clark Corbridge, Mayor
AYES: Dunham, Valdatta, Bardarson, Smith, Kellar, Corbridge
NOES: None
ABSENT: Amberg
ABSTAIN: None
ATTEST:
Johanna Dollerhide
~~ Acting City Clerk, CMC
(City Seal)
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Council Agenda Statement
Meeting Date: April 14, 2008
To: Phillip Oates, City Manager
From: Tim Barnum, Manager Electric Utility
Agenda Item: Purchase two 500 KVA transformers from
Potelcom supply for an amount not-to-exceed $48,760.00.
BACKGROUND & JUSTIFICATION:
The Electric Utility needs to order two 500 KVA transformers for projects at the Harbor. The cost of
transformers will be recovered on Work Orders.
The Electric Department requested quotes from our regular suppliers on February 6, 2008. The
responses are attached. Potelcom supply is the recommended vendor, based on the requirements in
the proposal and delivery time. The proposal requested information on transformer losses as well as
initial cost and estimated delivery. Although Potelcom supply does not have the lowest initial cost, it
does have lower "load losses" and relatively low "no load losses" which over the life of the
transformer will more than compensate for the higher initial cost and the delivery times will allow
use to meet the time requirements for the projects.
The per-transformer cost is $21,200.00 for a combined cost of $42,400.00 and the addition of an
additional contingency 15% was added to cover unanticipated cost increases in materials of shipping
surcharges for anot-to-exceed cost of $48,760.00.
CONSISTENCY CHECKLIST:
Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive
Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
FISCAL NOTE:
Charge the cost to purchase two 500 KVA Transformers from Potelcom supply, in the amount of
$42,400 to "Electric Fund", Account 501-5300-5440 which will then be chazged to the customer on
Work Orders.
Approved by Finance Department: ~`~
RECOMMENDATION:
Sewazd City Council approve Resolution 2008-028, authorizing the City- Manager to purchase tti~s~o
500 KVA Transformers from Potelcom supply, FOB Seward, for a price not to exceed $48,760.00.
Funding is available in account no. 501-5300-5440.
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