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HomeMy WebLinkAboutRES2023-015 Purchase Transformers Sponsored by: Bower CITY OF SEWARD,ALASKA RESOLUTION 2023-015 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE SIX 115KV VOLTAGE TRANSFORMERS FROM INSTRUMENT TRANSFORMER EQUIPMENT CORPORATION (ITEC) IN THE AMOUNT OF $67,122, PLUS A 10% CONTINGENCY FOR INSTALLATION IN THE FORT RAYMOND SUBSTATION, AND APPROPRIATING FUNDS WHEREAS, Instrument Transformer Equipment Corporation(ITEC) was selected as the preferred vendor for the transformers following outreach to three vendors; and WHEREAS, ITEC provided the lowest bid while also meeting all operational specifications; and WHEREAS,the new transformers are necessary to upgrade the voltage capability of the Fort Raymond Substation from 69kV to 115kV as part of the overall infrastructure rebuild planned for the City over the next 2-4 years; and WHEREAS, the six new 115kV voltage transformers will replace the four existing 69kV transformers located in the Fort Raymond Substation; and WHEREAS,the new voltage transformers can continue to operate at 69kV until customer demand or system load necessitates a move to the higher voltage capacity. 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 six 115kV transformers for the Fort Raymond Substation from Instrument Transformer Equipment Corporation to replace the existing 69kV transformers and increase the substation's voltage capacity. Section 2. Funding in the amount of $67,122 plus a 10% contingency is hereby appropriated from the System Infrastructure Project budget via the approved Revenue Bond Electric Fund 15000-0000-3710 transferred to 15340-0000-3700 Electric reserves account appropriated in to15340-0000-8103 Capital Equipment Account. 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 February, 2023. CITY OF SEWARD, ALASKA RESOLUTION 2023-015 THE CITY OF SEWARD, ALASKA C'�,uJrCii re Sue McClure, Mayor AYES: Osenga, Finch, DeMoss, Calhoon, Wells, McClure NOES: None ABSENT: Barnwell ABSTAIN: None ATTEST: renda J. Ba 1 , C City Clerk (Cityts OF Seiv••. e. • • E •J . • AL d ''••„•�OF ALP ,1ggs City Council Agenda Statement Meeting Date: February 13, 2023 To: City Council Through: Janette Bower, City Manager From: Rob Montgomery, General Manager - Electric Agenda Item: Resolution 2023-015: Authorizing the City Manager to Purchase Six 115kV Voltage Transformers from Instrument Transformer Equipment Corporation (ITEC) in the Amount of$67,122 plus a 10% contingency for Installation in the Fort Raymond Substation and Appropriating Funds Background and justification: In 2022, a $10 million revenue bond was approved to complete work over the next 2-4 years to replace aging transmission infrastructure in Seward and upgrade the system's voltage capacity from 69kV to 115kV. Part of this project includes substation upgrades across the system, including the replacement of the older 69kV voltage transformers located inside the Fort Raymond Substation. The work on the substation is expected to begin this summer or early fall, depending upon the supply chain. The Electric Department reached out to multiple vendors before receiving bids. ITEC was able to meet the requested specifications and also provided the lowest bid. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive 3.7.1.4 "Continue to upgrade and expand utilities to meet existing needs and Plan: encourage future development." Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ $67,122 plus a 10% contingency This legislation (✓): Creates revenue in the amount of: $ X Creates expenditure in amount of: $ $67,122 plus a 10% contingency Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): 15340-0000-8103 X Not budgeted Not applicable 131 Fund Balance Information Affected Fund (✓): General SMIC N Electric Wastewater Boat Harbor ParkingWater Healthcare Motor Pool Other Note: amounts are unaudited Fund Balance/Net position — restricted $ 9,486,364 Fund Balance/Net position — unrestricted/unassigned $ 7,426,000 Available Unrestricted Cash Balance: $ 16,086,334 Finance Signature: % j Attorney Review FYes Attorney Signature: Not applicable Comments: Administration Recommendation xeApprove Resolution Other: 132