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Home My WebLink AboutRes2015-005 Sponsored by: Hunt CITY OF SEWARD;ALASKA RESOLUTION 2015-005 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONSTRUCTION AGREEMENT WITH ENGINEERED SERVICES GROUP, INC. (ESG) OF ANCHORAGE, ALASKA TO MOVE TWO (2) ELECTRO-MOTIVE DIESEL (EMD) GENERATORS FROM ARCTIC PACK ENCLOSURES INTO THE NEW GENERATOR BUILDING AND CONSTRUCT ALL SUPPORTING SYSTEMS TO PERMIT THEM TO OPERATE FOR AN AMOUNT NOT TO EXCEED $3,100,000 AND APPROPRIATING FUNDS WHEREAS, on June 11, 2012, the Seward City Council approved Resolution 2012-028 accepting a grant from Alaska Energy Authority to upgrade and update generation facilities at Fort Raymond Generation Plant for$3,960,000 and appropriated funds; and • WHEREAS, April 1st 2014,the Alaska Energy Authority(AEA) increased funding to the grant to raise it to $6,000,000; and WHEREAS,April 28th 2014,the City Council approved Resolution 2014-043 purchasing electrical engineering services from Electric Power Services,Inc. (EPS),a subsidiary of Engineered Services Group, Inc. (ESG); and WHEREAS,ESG has a long history with the City of Seward Electric Department and is the company which did the 2010 phase of the ongoing generator plant upgrade project; and WHEREAS,Marsh Creek,Inc.is the only other company in Alaska qualified to perform this work but has declined to propose; and WHEREAS,ESG is the only company in Alaska both qualified and willing to perform this work; and WHEREAS,ESG has proposed to do this work,on a time and material basis,for a cost not to exceed $3,100,000.00; and WHEREAS, it is in the city's best interest to use alternative procurement procedures and sole source this contract; and WHEREAS, the city manager has approved the alternative procurement procedure as outlined and allowed in SCC 6.10.310. (A) and(B). CITY OF SEWARD,ALASKA RESOLUTION 2015-005 NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Council, in accordance with SCC 6.10.310. (A) and (B), and for reasons enumerated above, finds that it is in the best interest of the City of Seward to sole source this work to Engineered Services Group, Inc. Section 2. The City Manager is authorized to enter into a construction agreement with Engineered Services Group Inc, of Anchorage, Alaska to move two Electro-Motive Diesel (EMD) generators into the generation building and to construct all necessary supporting systems to permit them to operate. Section 3. Funding for this contract in an amount not to exceed $3,100,000 is hereby appropriated from the Alaska Energy Authority(AEA)Grant Account no. 15322-0000-7009,and 15323- 0000-7009. Section 4. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this 12th day of January, 2015. THE CITY OF SEWARD,ALASKA j/, 4 , can Bardarson,Mayor AYES: Keil, Terry, Squires, Bardarson NOES: None ABSENT: Casagranda, Darling, Butts ABSTAIN: None ATTEST: eossee®ene®,e ohanna Kinney, CMC ®o ®� 0", 4164, ity Clerk �°bspoFee° e ° d (City Si)ea • e SEA o a ..�,.o o Q '• , o eatikaaaa®eat° Council Agenda Statement '.tof s Meeting Date: January .1� gY 12 2015 17, �o . •i\ Through: Jim Hunt, City Manager 'P From: John Foutz, Electric Department Manager Agenda Item: Contract with Engineered Services Group Inc of Anchorage,Alaska to relocate two (2) Electro-Motive Diesel (EMD) generators from Arctic Pack Enclosures to the new generator building and construct the necessary support systems BACKGROUND &JUSTIFICATION: June 11th°2012,City Council approved Resolution 2012-028 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.On April 1,2014,the Alaska Energy Authority(AEA).increased funding to the grant to raise it to $6,000,000. City Council also approved Resolution 2014-043 on April 28th, 2014 purchasing electrical engineering services from Electric Power Services,Inc(EPS),a subsidiary of ESG.ESG has a long history with the City of Seward Electric Department.ESG completed the 2010 phase of the ongoing generator plant upgrade project and are the only company in Alaska which is both competent to do this work and willing to perform it.The only other company qualified for this work is Marsh Creek, Inc. Marsh Creek declined to propose. Concurrent with SSC 6.10.310 section A and B the City Manager find that it is in the City's interest to sole source this work to ESG. "A.Notwithstanding the requirements of,'6.10.210 et seq., a department or division head may recommend an alternative procurement procedure to the city manager if such procedure will best serve the needs of the city and accomplish the objectives of this title. The city manager shall review the recommendation and must approve it, in writing, before any procedures other than those required by.§6.10.210 may be utilized. B. The city manager shall notify the city council of his decision to use any procedure other than competitive sealed bids and the reasons for his decision at the next regularly scheduled city council meeting. The report shall also include a description of the selection process and criteria that will be used to analyze and recommend award, if criteria other than price are to be used" The Generator project has extensive technical,both electrical and mechanical,elements that require specialized training. Engineered Services Group, consisting of Electric Power Systems, Electric Power Construction,Dryden and LaRue and others,has the expertise to accomplish this work.This company also has the experience,with this facility in particular,because of their involvement with the previous generator project in 2010. INTENT: To Authorizing the City Manager to enter into a construction agreement with Engineered Services Group Inc of Anchorage, Alaska to relocate two (2) Electro-Motive Diesel (EMD) generators from Arctic Pack Enclosures to the new generator building and to construct the necessary support systems to permit them to operate for an amount not to exceed$3,100,000 and appropriating funds. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan(1.3, 3.7.3.1, 3.7.3.2): Continue to upgrade and 1. expand utilities to meet existing needs and encourage future X development. 2 Strategic Plan : The mission of the City of Seward government it is to X provide quality leadership and economic wellbeing of its citizens 3. Other(list): X FISCAL NOTE: Funding for this project, in its entirety was provided to the Electric Fund by AEA Grant#7910011. Approved by Finance Department: dett4ZD ttei44,p ATTORNEY REVIEW: Yes X No RECOMMENDATION: �lZe,S°1. °� ')-(0 1�j 00 Authorize the City Manager to enter into a construction agreement with Engineered Services Group Inc of Anchorage,Alaska to relocate two(2)Electro-Motive Diesel(EMD)generators from Arctic Pack Enclosures to the new generator building and to construct the necessary support systems to permit them to operate for an amount not to exceed$3,100,000 and appropriate funds.