HomeMy WebLinkAboutRes2013-018 Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2013 -018
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
PURCHASE AGREEMENT WITH R & M STEEL CO. OF CALDWELL, ID
FOR THE PURCHASE AND SHIPMENT OF A STEEL BUILDING KIT FOR
A TOTAL AMOUNT NOT TO EXCEED $196,232 TO WAIVE THE
NORMAL BID PROCUREMENT PROCEDURES, AND APPROPRIATING
FUNDS
WHEREAS, Council approved Resolution 2007 -085 which authorized the City Manager to
pursue funding for two electric generators and associated components and design/build proposals for
Fort Raymond generator building and a warehouse with office space; and
WHEREAS, the Council approved Resolution 2012 -028 accepting a grant from Alaska
Energy Authority to upgrade and update generation facilities at Fort Raymond Generation Plant for
$3,960,000 and appropriating funds; and
WHEREAS, a line item in that grant specifies that $1,400,000 of the grant is to be used to
build an office /warehouse; and
WHEREAS, the Electric Department has solicited quotes from five suppliers of Steel
Building Kits, finding four of them responsive; and
WHEREAS, the four responsive suppliers were R &M Steel Company, ($159,029), Premier
Building Systems ($284,200), ASRC Builders ($257,270) and Arctic Fox Steel Buildings
($344,100); and
WHEREAS, there exists a critical time element in the purchase of the Steel Building Kit,
since the stamped engineered drawings required for further aspects of the project are not available
until after the purchase of the Steel Building Kit; and
WHEREAS, there exists a critical time element in that steel is a highly volatile commodity
and the quote for this building is limited to 30 days; and
WHEREAS, there exists a critical time element in that if the building is not under roof
before the snow flies next fall, significant deterioration of the building materials can be expected
over the coming winter; and
WHEREAS, city code Title 6.10.310.A states, "a department head may recommend an
alternative procurement procedure to the city manager if such procedure will best serve the needs of
CITY OF SEWARD, ALASKA
RESOLUTION 2013 -018 J
the city and accomplish the objectives of this title." It is permissible to waive the sealed bid process,
if it is found to be in the public interest; and
WHEREAS, the Electric Department having found that R & M Steel Company of Caldwell
Idaho to have the least cost quotation, R &M was asked to quote on the final configuration of the
warehouse (arrived at following detailed discussions with the Fire Department and the Building
Department); that quote being $150,414; and
WHEREAS, Northland Services, usual and customary shipper for R &M Steel Company,
has quoted $27,979 to ship the Building Kit from Seattle, WA to the jobsite in Seward; and
WHEREAS, prudent project management practices suggest that a contingency fund, set
aside to cover unexpected expenses, be equal to at least 10% of the total or, in this case, $17,393.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Council finds it is in the best interest of the public to purchase the Steel
Building Kit, waiving the sealed bid process per SCC Title 6.10.310.A for the following reasons: J
1) To permit timely acquisition of foundation and structural drawings and calculations.
2) To prevent the expiration and likely increase of the quoted price for the steel building kit.
3) To ensure that the building is available for erection before the end of construction season.
Section 2. The City Manager is authorized to enter into an agreement with R & M Steel
Company of Caldwell, ID for the purchase and shipment of a Steel Building Kit for a total amount
not to exceed $150,414 from account 505 -5052 -5930.
Section 3. The City Manager is authorized to enter into an agreement with Northland
Services for the shipment of said Steel Building Kit for a total amount not to exceed $27,979 from
account 505 -5052 -5930. The shipping will be Freight On Board Seward, Alaska and delivered to the
job site.
Section 4. The City Manager is authorized to draw additional funds as needed to cover
contingencies, in the amount not to exceed $17,839 from account 505 -5052 -5930.
Section 5. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 11 day of
March, 2013.
CITY OF SEWARD, ALASKA
RESOLUTION 2013 -018
ir.
THE CITY OF SEWARD, ALASKA
f t /
David Seaward, Mayor
AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry, Seaward
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
As erA
Johanna Kim, MC
ity Clerk
(City Seal)
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Agenda Statement
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Meeting Date: March 11, 2013 ;$
Through: City Manager, Jim Hunt ```'
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From: Electric Department Manager, John Foutz
Agenda Item: To authorize the City Manager to enter into an agreement with R & M Steel
Company of Caldwell, ID for the purchase (FOB Seward, AK), of a steel building kit for a total
amount not to exceed $196,232 from account 505 -5052 -5930.
BACKGROUND & JUSTIFICATION:
After the August 13, 2007 work session, the City Council gave direction to the administration to
begin working to replace two generators, and to construct a building to house the generators and
a warehouse with office space at the Fort Raymond site.
On August 27, 2007, Council approved Resolution 2007 -085 which authorized the City Manager
to pursue funding for two electric generators and associated components and design/build
proposals for Fort Raymond generator building and a warehouse with office space. This project
has been divided into two phases, with the generation building being Phase I and the warehouse
as Phase II. Phase I is ongoing at this time. The current resolution relates to Phase II.
Resolution 2012 -028 accepted a $3,960,000 grant from Alaska Energy Authority for the purpose
of completing Phase I and beginning Phase II. A line item of that grant dictates that $1,400,000
of that grant will be spent on the Warehouse.
The Electric Department, acting on instructions from Council, has designed a warehouse which
provides protection for our materials and sensitive equipment, as well as providing for the IBEW
Contract mandated drying room and for crew space for safety meetings and general "turn- out ".
Also available within this space is an area which will allow us to work on the Large Bucket
Truck inside. The Large Bucket Truck cannot be adequately serviced at the City Shop due to size
limitations on that space. There is no office space for administration or non -union supervision
included in this design.
As part of the Steel Building Kit package, we will receive stamped engineered drawings of the
structural design and of the foundation. We also receive stamped engineering calculations,
justifying the structural design. Both of these items are required before we can solicit sealed bids
for Civil Contractors to prepare the site and construct the foundation. These drawings are also
required in order to apply for a building permit. As a result, the building must be purchased
before any further work can be done.
City Code Title 6.10.310.A states, "a department head may recommend an alternative
procurement procedure to the city manager if such procedure will best serve the needs of the city
and accomplish the objectives of this title." We believe that this is just such a situation.
Based on this preliminary design, the Electric Department has contacted five reputable suppliers
of Steel Building Kits and has solicited budgetary quotes from them. The best price was returned
by R & M Steel Company of Caldwell ID. We asked them to re -quote the building with a few
final modifications and their price is $150,414, FOB Seattle. Shipping from Seattle is estimated
at $27,979. Allowing a 10% contingency, we are asking Council to authorize commitment of
funds from AEA Grant #7910011 in the amount not to exceed $196,232.
INTENT: To authorize the City Manager to enter into an agreement with R & M Steel
Company of Caldwell, ID for the purchase of a steel building kit for a total amount not to exceed
$196,232 from account 505 -5052 -5930, funded in total from AEA Grant #7910011, already
accepted.
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan (1.3, 3.7.3.1, 3.7.3.2): X
2. Strategic Plan (document source here): X
3. Other (list): X
FISCAL NOTE: Total amount not to exceed $196,232 from account 505 -5052 -5930, funded in
total from AEA Grant #7910011, already accepted.
Approved by Finance Department:
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Approve resolution 2013 -�� authorizing the City Manager to enter into an agreement with R & M
Steel Company of Caldwell, ID for the purchase and shipping (FOB Seward, AK), of a steel building
kit for a total amount not to exceed $196,232 from account 505 -5052 -5930.