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HomeMy WebLinkAboutRES2023-129 Lawing Substation 3-Way Sponsored OF SEWARD,ALASKA by: Sorensen RESOLUTION 2023-129 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,AUTHORIZING THE CITY MANAGER TO PURCHASE FROM SOUTHERN STATES, LLC, A THREE-PHASE HORIZONTAL CIRCUIT SWITCH IN THE NOT-TO-EXCEED AMOUNT OF$155,550,INCLUDING SHIPPING,FOR INSTALLATION IN SEWARD'S LAWING SUBSTATION NEAR MOOSE PASS. WHEREAS, Southern States, LLC, was selected as the preferred vendor for the three- phase horizontal switch following outreach to multiple vendors; and WHEREAS, Southern States was selected because it meets all operational specifications, meets lead time expectations for delivery, and maintains offices/facilities within the state of Alaska, which is critical to future maintenance, troubleshooting and overall support; and WHEREAS,a three-phase horizontal switch is an essential part of the substation in that it is used to open or bypass an electrical circuit so that a piece of equipment or the downstream circuit can be isolated for maintenance and safety purposes; and WHEREAS, the purchase and installation of the new switch is part of the larger infrastructure project currently underway to improve reliability of the City's high-voltage transmission system. 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 from Southern States,LLC, a three-phase horizontal circuit switch for installation in Seward's Lawing Substation. Section 2. Funding in the not-to-exceed amount of$155,550 is hereby appropriated from the electric department's reserves account no. 15340-0000-8103. Section 3.This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 27th day of November 2023. THE CITY OF SEWARD,ALASKA Sue McClure, Mayor CITY OF SEWARD,ALASKA RESOLUTION 2023-129 Page 2 of 2 AYES: Barnwell, Wells, Osenga, Calhoon, Crites, McClure NOES: None ABSENT: Finch ABSTAIN: None ATTEST: //Li Kris Peck City Clerk (City Seal) As. Of SE{1 4,4/......e?"6"*.<114,* � • : • s SEAL • • - •-- s • gTFOF P\-P s`s 'jrnni•s• City Council Agenda Statement . Meeting Date: November 27, 2023 To: City Council Through: Kat Sorensen, City Manager From: Rob Montgomery, General Manager Electric Subject: Resolution 2023-129: Authorizing The City Manager To Purchase From Southern States, LLC, A Three-Phase Horizontal Circuit Switch In The Not-To-Exceed Amount Of$155,550, Including Shipping, For Installation In Seward's Lawing Substation Near Moose Pass. Background and justification: Work to rebuild key sections of Seward's transmission system to replace aging equipment and upgrade the system's voltage capacity got underway in 2023 and will continue in 2024.This work is part of the overall transmission infrastructure project to improve system reliability well into the future. Part of this work includes refurbishing Seward's three high-voltage substations: Fort Raymond, Lawing and Spring Creek. Most of the work at Fort Raymond was completed in 2023, leaving Lawing and Spring Creek to be completed in 2024.Work at Lawing will begin first. A key piece of equipment to replace in the Lawing substation is a three-phase horizontal circuit switch that is used to open or bypass an electrical circuit so that maintenance work or troubleshooting can be safely performed. Multiple vendors were contacted for the project and bids were received from three companies. Southern States was selected based upon its ability to meet all operational specifications, the 40- week lead time for delivery, and the fact that Southern States maintains offices/facilities within the state. Bid amounts were: $131,640, $146,850, and $155,550. While the bid from Southern States was higher, the company was chosen because its three-way switch meets all operational specifications, offers a 40-week lead time on delivery, and maintains offices/facilities in Alaska, which is critical to ongoing support for maintenance and troubleshooting. The company with the lowest bid does not maintain offices/facilities in the state which, as stated,is critical to future support. The company with the second lowest bid could only offer a 100-week delivery time, which does not meet the construction schedule. 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: Reduce Energy Costs—Expand customer base within the Seward Electric utility area Other: 105 Certification of Funds Total amount of funds listed in this legislation: $ 155,550.00 This legislation(✓): ✓ Creates revenue in the amount of: $ 155,550.00 Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): ✓ Not budgeted Part of Transmission Infrastructure Project Not applicable Fund Balance Information Affected Fund(✓):15340-0000-8103 General SMIC Iq Electric Wastewater Boat Harbor Parking Water Healthcare Motor Pool Other Note: amounts are unaudited Available Fund Balance $ Finance Director Signature: Attorney Review FYes Attorney Signature: v] Not applicable Comments: Administration Recommendation e✓ Adopt Resolution Other: 106