HomeMy WebLinkAboutRes2008-066Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2008-066
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO
ENTER INTO A PURCHASE AGREEMENT WITH VALLEY
POWER SYSTEMS FOR THE PURCHASE OF RADIATORS AND
EXHAUST SILENCERS, FOR A TOTAL AMOUNT NOT-TO-
EXCEED $515,788.00, AND APPROPRIATING FUNDS
WHEREAS, the generator replacement project will require the purchase of four (4)
radiators and exhaust silencers, which were quoted along with the rebuilt generator units; and
WHEREAS, preventive maintenance at the Fort Raymond generation facility required the
replacement of one (1) exhaust silencer that is currently installed on the roof and needs to be
relocated; and
WHEREAS, the cost of the radiators ($80,662.00/ch), exhaust silencers ($21,800.00/ch)
and flexible piping connectors ($1,450.00/ch) continues to increase on an almost daily basis along
with shipping cost ($30,000.00) and a contingency of 10% ($46,890.00) for any increases in
material or shipping cost; and
WHEREAS, the purchase of these items now will save money now versus purchasing them
at a later date and assures that the items will be on site so as to not cause a delay in the project; and
WHEREAS, the City Council hereby finds that the public interest is best served by
purchasing these radiators and from the vendor supplying the used generators for the generator
replacement project, to ensure compatibility for proper cooling and noise reduction of the
generators.
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 Valley Power
Systems for the purchase of radiators, exhaust silencers and flexible piping connectors for a price
not-to-exceed $515,788.00 from Account 501-5400-5930.
Section 2. Funding in the amount of $515,788.00 is appropriated from the Electric MRRF
Fund account no. 502-0000-3075-0501 to the equipment account no. SO1-5400-5930.
Section 3. The City Council finds that it is in the best interest of the public to purchase the
radiators and exhaust silencers quoted and recommended by the supplier of the generator units.
Section 4. 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 July 2008.
THE CITY OF SEWARD, ALASKA
Clark Corbridge, Mayor
AYES: Dunham, Valdatta, Bardarson, Amberg, Smith, Corbridge
NOES: None
ABSENT: Kellar
ABSTAIN: None
ATTEST:
Je Lewis
C Clerk, C1VIC
(City, Seal) '''~~~~~`'~ gEyVq ~,~.
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SEAS
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Council Agenda Statement
Meeting Date: July 14, 2008
Through: Phillip Oates, City Manageri~~~
From: Tim Barnum, Electric Utility Manager
Agenda Item: Purchase radiators and exhaust silencers for
Fort Raymond from Valley Power Systems for
$507,813.00
BACKGROUND & JUSTIFICATION:
As part of the generator replacement project, we will need to purchase two (2) radiators
and two (2) exhaust silencers for the new generator units and we will also need to replace
the existing support systems when units #4 & #5 are relocated.
The costs of materials continue to increase on a daily basis and we know that these items
will be needed, regardless of the degree of completion of the project. The degree of
completion is being impacted by increases in material cost. The sooner some of the large
ticket items are purchased, the more cost savings we realize in the project. Purchase of
the items that we know are required for completion of the project also prevents delays
due to long lead times for delivery. We should also receive a better shipping rate for
multiple items in one shipment verses multiple shipments of one or two items.
We are asking to purchase one (1 }additional exhaust silencer as part of our preventative
maintenance program at Fort Raymond to be replacing the exhaust silencer on unit #3.
Currently, the exhaust silencer is located on the roof of the building. This has always
been a problem from the aspects of building design and the ability to seal the opening.
The building is not designed to support the weight of the silencer and due to the
temperature of the exhaust during operations, we are not able to seal the opening and rain
and snow melt leak on to the turbo-charger. We are concerned that it will Lead to
premature failure of the turbo-charger, making the unit inoperable.
Radiators cost $80,662.00/each, Exhaust silencers cost $21,800.00/each, flexible piping
connectors cost $1,450.00/each set, shipping charges $30,000.00 plus a contingency of
10% for increases in material cost and fuel surcharges for a total cost of $507,813.00.
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.
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FISCAL NOTE:
Funding in the amount of $507,813 is appropriated from the Electric MRRF Fund
account no. 502-0000-3075-0501 to equipment account no. 501-5400-5930.
Approved by Finance Department: L,
RECOMMENDATION:
City Council approve Resolution 2008-b~ authorizing to purchase four (4) radiators and
five (5) exhaust silencers from Valley Power Systems for $507,813.00.
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