HomeMy WebLinkAboutRes2019-074 Sponsored by: Meszaros
CITY OF SEWARD, ALASKA
RESOLUTION 2019-074
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO APPROVE
PURCHASE ORDERS WITH ANIXTER DISTRIBUTION FOR$76,156,AND
WESCO DISTRIBUTION FOR$51,954,FOR A TOTAL COST OF$128,110,
PLUS A 10%CONTINGENCY,TOTALING$140,921 FOR THE PURCHASE
OF TRANSFORMERS,AND APPROPRIATING FUNDS
WHEREAS, the Electric Department is restocking transformers for new jobs that are
projected in the 2019 and 2020 construction seasons, and for emergencies; and
WHEREAS, the Electric Department solicited three quotes; and
WHEREAS, the majority of the expense for these transformers will be recovered through
new service installations; and
WHEREAS,lead times to purchase transformers can take up to 50 weeks and this order is
quoted for 12 to 24 weeks; and
WHEREAS,some of these transformers are needed for this construction season in order to
complete jobs on time.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The City Manager is authorized to approve a purchase order for ANIXTER
Distribution to purchase transformers in an amount not to exceed$76,156,plus a 10%contingency,
totaling$83,771.60.
Section 2. The City Manager is authorized to approve a purchase order for WESCO
Distribution to purchase transformers in an amount not to exceed$51,954,plus a 10%contingency,
totaling$57,149.40.
Section 3. Funding for both purchase orders is hereby appropriated from the Electric
Department reserves account no. 15000-0000-3400 to the Electric Department capital equipment
account no. 15000-3005-8103.
Section 4. This resolution shall take effect immediately upon its adoption.
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CITY OF SEWARD,ALASKA
RESOLUTION 2019-074
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12th
day of August, 2019.
THE CITY OF SEWARD,ALASKA
ires,
AYES: McClure, Horn, Osenga, Squires
NOES: Lane, Seese
ABSENT: Towsley
ABSTAIN: None
ATTEST:
renda J. Bal u, MMC J
City Clerk
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Agenda Statement
Meeting Date: August 12,2019
To: Seward City Council
From: John Foutz, Utility Manager
Through: Scott Meszaros, City Manager
Agenda Item: Authorizing the approval of two purchase orders for transformer purchases
BACKGROUND & JUSTIFICATION:
Lead times on the purchase of transformers could take anywhere up to 50 weeks depending on the
manufacturer; this is due to the manufacturing, availability and shipping. Due to the fluctuation in
lead times,the utility needs to restock enough transformers for future construction and emergency
purposes as well as regular construction for the 2019 and 2020 seasons. A number of these
transformers are needed in order to complete the 2019 work orders before the construction season
has ended.
The electric department properly solicited three price quotes for this order. For each transformer,
staff selected the lowest priced item,when possible,from the three vendors and compiled their order
accordingly.In four instances,the lowest priced transformer was not selected due to safety,quality,
size and standardization concerns as outlined below:
1. Thin transformer walls are typically bent or damaged during the installation process
2. Thin transformer walls typically don't stand up well to coastal air
3. The width and height of the transformers do not conform to the vaults already in stock
4. The electric department's goal is to have uniform and standardized infrastructure
5. The thin transformers have interior components that are known to fail quickly
The resulting selections equaled a total purchase price of$76,156 from Anixter Distribution and
$51,954 from Wesco Distribution.A ten-percent contingency is recommended for any unforeseeable
costs associated with these purchases.
INTENT: To Authorize the City Manager to approve two purchase orders for an assortment of
transformers.
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. Expand customer base within the Seward Electric Utility
area as a means to reduce enerr-v costs and improve services.
2 Strategic Plan: The mission of the City of Seward government it is to X
provide quality leadership and economic wellbeing of its citizens.
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3. Other gist): X
FISCAL NOTE: There are sufficient finds within the electric department reserves account for this
transformer purchase. A majority of the expense associated with this purchase will be recovered
through future service installations.
Approved by Finance Department:
ATTORNEY REVIEW: Yes No
RECOMMENDATION: Seward City council approve Resolution 2019-074 authorizing the City
'Manager to approve two purchase orders for electric transformers.
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