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HomeMy WebLinkAboutRes2012-028 Sponsored by: Hunt Postponed from: May 14, 2012 CITY OF SEWARD, ALASKA RESOLUTION 2012 -028 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING A GRANT FROM ALASKA ENERGY AUTHORITY TO UPGRADE AND UPDATE GENERATION FACILITIES AT FORT RAYMOND GENERATION PLANT FOR $3,960,000 AND APPROPRIATING FUNDS WHEREAS, the City of Seward relies on the backup generation facility in times of emergency; and WHEREAS, an update and reliable backup generation facility is in the best interest of the community; and WHEREAS, Council intends the warehouse proposed in the project be designed as storage, dry room, and limited to union offices; and WHEREAS, pursuant to the HB 108 for outright grant of funds, Alaska Energy Authority #7910011 provides funds to update and upgrade the generation facilities at Fort ,,. Raymond to permit a more reliable generation plant; and WHEREAS, the grant was awarded by the State on July 1, 2011; and WHEREAS, these funds are allocated by the State to complete the Fort Raymond Generation Substation Upgrade; and WHEREAS, the funds to accomplish the work is expected to total $4,164,010 of which $3,960,000 is an outright grant through AEA and $204,010 represents work to be accomplished within the operational budget of the Electric Department. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Seward City Council hereby authorizes the City Manager to accept AEA Grant #7910011 to upgrade and update generation facilities at Fort Raymond Generation Plant, and accepts grant funds in the amount of $3,960,000 to Standby Generator Plant Grant Revenue Account No. 505 -5052- 4680 -0200. Section 2. This resolution shall take effect immediately upon its adoption. CITY OF SEWARD, ALASKA RESOLUTION 2012 -028 wog PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 11 day of June, 2012. THE CITY OF SEWARD, ALASKA / David Seaward, Mayor AYES: Valdatta, Bardarson, Shafer, Casagranda, Terry, Seaward NOES: None ABSENT: Keil ABSTAIN: None ATTEST: le A-11, ohanna Kinney, CMC City Clerk (City Seal) .� 44 . 0 ..1 F SE •i o O rVg = r SEAL I , 4j� p OF 1 s" * * s" • J Agenda Statement e of spit. Meeting Date: May 14, 2012 t a 9$ u To: City Council 4 P Through: Jim Hunt, City Manager From: John Foutz, Utility Manager Agenda Item: Accept Alaska Energy Authority grant #7910011 BACKGROUND & JUSTIFICATION: Grant Agreement #7910011 from the State of Alaska through Alaska Energy Authority (AEA) provides funds to update and upgrade the generation facilities at Fort Raymond to permit a more reliable generation plant. Two contracts will be presented to the council, separate from the grant acceptance, allocating the grant funds to the winning bidders for integrating the controls and for the building. The grant was awarded by the State on July 1, 2011, in the amount of $4,000,000.00. AEA has taken 1% ($40,000) as administrative fees. The funds to accomplish the work are expected to total $4,164, 010, of which $3,960,000 is an outright grant from AEA and $204,010 represents work to be accomplished within the operations budget of the Electric Department. INTENT: Council authorize the City Manager to accept AEA Grant #7910011 to upgrade and update the facilities at Fort Raymond Generation Plant. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan : Sections 1.3, 3.7.3.1 and 3.7.3.2 X 1 - 2. Strategic Plan (document source here): X 3. Other (list): I i X - - -J FISCAL NOTE: The grant amount from the State of Alaska is $4,000,000 and Alaska Energy Authority is taking 1% or $40,000 as administration fees. The initial projected cost estimated by Jack Anderson with Dryden & LaRue (A subsidiary of EPS) is $4,197,010 and is divided into design and construction of the generation facility at $1,749,250, engineering and construction of warehouse /administrative facility for $1,400,000, engineering at $314,925, and Contingency at $692,835. The amount over $4,000,000 is expected to be match by the City of Seward. Since the $4,000,000 is granted by the State, then the funds do not impact the city's electric department operating expense. The $197,010, if used, will come from the electric department's reserves. Approved by Finance Department: , u/ ATTORNEY REVIEW: Yes No X Ie Nr RECOMMENDATION: Council approve Resolution 2012 - D authorizing the City Manager to accept grant funds by the state through Alaska Energy Authority for the intended use of upgrading and updating the Fort Raymond Generation Facility.