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HomeMy WebLinkAboutRes2021-101 CITY OF SEWARD,ALASKA Sponsored by: Bower RESOLUTION 2021-101 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE SEVEN ELECTRIC TRANSFORMERS IN AN AMOUNT NOT TO EXCEED $4,800,000, WHICH INCLUDES A 15% CONTINGENCY, TO HELP ENSURE SERVICE RELIABILITY FOR SEWARD RESIDENTS AND BUSINESSES WHILE ALSO ALLOWING THE CITY TO MEET FUTURE LOAD GROWTH,AND APPROPRIATING FUNDS WHEREAS, there are six existing transformers needing to be replaced because they are beyond their service life and their condition is poor and deteriorating; and WHEREAS,an additional transformer is needed in a yet-to-be constructed substation near the boat harbor to ensure enough system capacity to serve a new cruise ship dock; and WHEREAS, some of the transformers may take up to 72 weeks for delivery; it's critical to place the order as quickly as possible so they arrive in early 2023 and work can begin shortly after their delivery; and WHEREAS, the new transformers are part of an overall $19.4 million project to rebuild the"backbone" of Seward's electric transmission system to help ensure service reliability for the next 35 to 40 years. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Manager is hereby authorized to purchase seven new electric transformers to improve service reliability and meet future load growth. Section 2. Funding in the amount of$4,800,000 is hereby appropriated from Electric Fund Reserves account no. 15000-0000-3400 to Electric Critical Infrastructure Project Fund account no. 15340-0000-8101. Section 3.This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of September, 2021. CITY OF SEWARD, ALASKA RESOLUTION 2021-101 HEIIT IFS ^4..t • . ..v• . AAILAAAIIK Ch • ty Terry, M• or AYES: Baclaan, Osenga, DeMoss, McClure, Casagranda, S• NOES: None ABSENT: None ABSTAIN: None ATTEST: rends J. Ba110 , MC City Clerk ,,,,,,,,,,„ (City Seal. OF SE **, • n ' I SEAL € • h • a w OF1► i '0 .,,,, .I,,. City Council Agenda Statement ' F M Meeting Date: September 13, 2021 - To: City Council Through: Janette Bower, City Manager From: Rob Montgomery, Electric Utility Manager Agenda Item: Resolution 2021-101: Authorizing the City Manager to Purchase Seven Electric Transformers in an Amount not to Exceed$4,800,000, which includes a 15% contingency, to Help Ensure Service Reliability for Seward Residents and Businesses While also Allowing the City to Meet Future Load Growth, and Appropriating Funds Background and justification: Many of the transformers currently operating on Seward's electric transmission system are 40 years old or older and are beyond their service life. As part of an effort to update and rebuild its electric transmission system to improve service reliability and meet future system demand, the Electric Department must replace six existing transformers and install one new transformer near the harbor: 0 Fort Raymond Substation - Two 10-MVAtransformers ($1.4M) 0 Lawing Substation - One 2.5 MVA transformer($565K) 0 Harbor Substation - One 12-MVA transformer; new substation to be constructed to serve new cruise ship dock and future growth ($700K) 0 Primrose and Snow River- Two 1.25 MVA transformers ($1.13M) 0 One 1.25 MVA transformer to serve as a back-up for Primrose and Snow River($565K) 0 15% contingency ($440K) With the supply chain for delivery expected to take 60-72 weeks for the larger transformers, it's important that an order be placed as soon as possible so installation work can begin in spring/summer of 2023. The existing transformers are in a deteriorating condition and could fail at any time. The new transformers are part of an overall $19.4-million project to rebuild the "backbone" of Seward's electric transmission system. The transformers, along with the transmission system work needed in targeted areas,are critical to service reliability in and around the city for the next 35 to 40 years. Consistency checklist: Comprehensive Plan: N/A Fiscal note: Funding from: Electric Fund Unassigned Fund Balance 15000-0000-3400 Finance Department approval: LA4 Attorney Review: Yes ❑ No ❑ Not applicable �X Recommendation City Council approve Resolution 2021-101.