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HomeMy WebLinkAboutRes1991-158 . . . Sponsored by: Schaefermever CITY OF SEWARD, ALASKA RESOLUTION NO. 91-158 OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY SEWARD, ALASKA, AUTHORIZING THE AWARD OF A CONTRACT TO PACIFIC RIM TO MAKE EMERGENCY REPAIRS TO EMD GENERATOR UNIT NO. 4 WHEREAS, the city of Seward Electric Utility has a standby generation plant consisting of three 2500 KW EMD diesel units and two 1942 vintage 1500 KW Alco Units that can just carry the normal electrical power demand of the city when operating at maximum capacity; and WHEREAS, since December 15th, the city has experienced severe weather conditions including heavy wet snow and freezing rain which has broken power lines, caused trees to fall into lines and otherwise disrupted service from Chugach Electric Association; and WHEREAS, the engine on EMD Generator Unit No. 4 failed on December 17th, and it is estimated that the engine will require major repairs requiring two weeks and costing in excess of $100,000, plus an additional $40,000 to $60,000 for a replacement turbo charger; and WHEREAS, failure of another unit will cause blackout and rotation of electrical service to various residents as well as the industrial areas of the city, threatening the health, safety and economic well being of residents and businesses alike; and WHEREAS, Pacific Rim Diesel is the only authorized EMD service company readily available in Alaska to repair the unit; and WHEREAS, the cost estimate for repair has been reviewed by another EMD service company in the Lower 48 and by the city's insurance carrier and has been found to be reasonable; and WHEREAS, Morrison Knudson claims that the warranty for this generator unit is no longer in effect; and WHEREAS, the city's insurance carrier has authorized the city to proceed with repairs; and WHEREAS, the maximum cost to the city for repair will be payment of the $60,000 deductible under the city's boiler and machinery policy issued by Chubb Insurance Group; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: -1- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 91-158 Section 1. Due to the emergency conditions set forth above, it is in the public interest to waive formal bid procedures for the award of a contract to repair EMD Generator Unit No.4. Section 2. The City Manager is authorized to award a contract to Pacific Rim Diesel for repair of EMD Generator Unit No. 4 for an estimated amount of $100,908.60, plus a project contingency totalling $80,000 to cover purchase of the turbo charger and other expenses necessary to return the generator unit to service. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 27th day of December, 1991. ~E CITY OF SEWARD, ALASKA (-/ /"i' /' l.- i c~"ltZLt.Lt.t/ ('- )ftfr--.., . f- Donald W. Cr~pps, Mayor AYES: Bencardino, Crane, Cripps, Dunham, Krasnansky, Swartz, White None None None NOES: ABSENT: ABSTAIN: ATTEST: APPROVED AS TO FORM: Perkins Coie, Attorneys for the city of Seward, Alaska ~AJL Fred B. Arvidson City Attorney (City Seal) -2-