HomeMy WebLinkAboutRES2023-026 Renting Two Generators from NC Power Systems -- CITY OF SEWARD, ALASKA Sponsored by: Bower
RESOLUTION 2023-026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO PAY RENTAL
FEES TO NC POWER SYSTEMS IN A NOT-TO-EXCEED AMOUNT OF
$227,130.04 FOR TWO LARGE GENERATORS TO MAINTAIN
ELECTRIC SERVICE FOR NASH ROAD CUSTOMERS DURING
TRANSMISSION INFRASTRUCTURE CONSTRUCTION
WHEREAS, the Electric Department reached out to multiple vendors in the state without
success before locating these two large generators (1,000kW and 1,500kW) with the size and
capacity to handle the electric load of the area; and
WHEREAS, these generators will be rented for up to four months at $56,782.51 monthly
to ensure their availability should any delays in construction occur due to weather or other reasons;
and
WHEREAS, the generators will be tied directly into the electric system along Nash Road
so that power service is maintained during infrastructure construction activities; and
WHEREAS, the generators will also ensure only a brief service interruption when the
- primary electric system along Nash Road is taken offline and switched over to the generators.
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 pay rental fees for two large
generators (1,000kW and 1,500kW) to maintain electric service in the Nash Road area during
transmission infrastructure construction.
Section 2. Funding in a not-to-exceed amount of$227,130.04 is hereby appropriated from
the System Infrastructure Project budget via the approved Electric Revenue Bond from Electric
Nash Road Infrastructure Project Fund the expense account of Equipment Rent 15351-0000-7304.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 271h
day of February, 2023.
THE CITY OF SEWARD, ALASKA
IQ C,a
Sue McClure, Mayor
CITY OF SEWARD, ALASKA
RESOLUTION 2023-026
AYES: DeMoss, Wells, Finch, Barnwell, Calhoon, Osenga, McClure
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Brenda J. Ballo , MMC
City Clerk
(City Seal) ,,+ `q11""" � `
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City Council Agenda Statement
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Meeting Date: February 27, 2023 t!
To: City Council
Through: Janette Bower
From: Rob Montgomery, General Manager Electric
Subject: Resolution 2023-026: Authorizing the City Manager To Pay Rental Fees To
NC Power Systems In A Not-To-Exceed Amount Of $227,130.04 For Two
Large Generators To Maintain Electric Service For Nash Road Customers
During Transmission Infrastructure Construction.
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. The first phase of this work is taking place on Nash Road in 2023. During some
parts of this construction work, the electric system must be taken offline. These two large
generators (1,000kW and 1,500kW),which will be tied directly into the electric system in that area,
will allow service to be maintained during the construction work. There will be a brief outage when
the power is switched over to the generators.
Generators of this size and capacity are not easily located. The Electric Department reached out to
multiple vendors before locating the generators meeting the necessary specifications.To ensure the
availability of the generators during this key phase of the construction, the Electric Department
secured the generators for up to four months at a monthly rental rate of $56,782.51.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 3.7.1.4"Continue to upgrade and expand utilities to meet existing needs and
encourage future development."
Strategic Plan:
Other:
Certification of Funds
Total amount of funds listed in this legislation: $
This legislation (✓):
Creates revenue in the amount of: $
✓ Creates expenditure in amount of: $ 227,130.04
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (✓):
✓ Budgeted Line item(s): 15351-0000-7304
Not budgeted
Not applicable
133
Fund Balance Information
Affected Fund (✓):
General SMIC Iq
Electric Wastewater
Boat Harbor Parking Wat F1 Healthcare
Motor Pool Other
Note: amounts are unaudited
Fund Balance/Net position - unrestricted/unassigned $ 7,426,000
Restricted/Unavailable Cash Balance: $ 7,488,105
Available Unrestricted Cash Balance: $ 8,021,034
Total Cash Balance: $ 15,509,139
Note: Unrestricted Net Position represents the total non-capital assets of the fund less anyliabilities
while unrestricted cash represents the liquid spendable,portion of these assets on a short-term
basis
Finance Director Signature:
Attorney Review
RxYes Attorney Signature:
Not applicable Comments:
Administration Recommendation
x Approve
Resolution
Other:
134