TRANSMITTAL MEMORANDUM

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1 KPU G~m ral Mllnllg r.>34 f-ront Strec[ Ketchi.k;ut, AK 999CO I Phonj' (90 7) ;U S-)(,03 Fax (907) TRANSMITTAL MEMORANDUM TO: FROM : DATE: RE: The Honorable Mayor and City Council Karl R. Amylon, General Manager March 10, 2016 Authorizing Budget Transfer - Declaration of Public Emergency, Telecommunications Division Central Office Halon Fire Suppression System Replacement, Yukon Fire Protection The motion detailed below was prepared at the request of Telecommunications Division Manager Ed Cushing, who asked that it be placed before the City Council for consideration at its meeting of March 17, If adopted, the motion provides for declaring the replacement of the Telecommunications Division's Central Office halon fire suppression system as a public emergency and authorizing the procurement of a replacement system from Yukon Fire Protection of Anchorage, Alaska without competitive bidding and/or quotes. The rationale for the declaration of the public emergency and purchase of the replacement system is detailed in Mr. Cushing's transmittal memorandum and requires no elaboration on the part of my office. I concur with the Telecommunications Division Manager's recommendation. Under KMC (a)(7) competitive procedures are not required for; (7) Supplies, materials, equipment or contractual services which are required on an emergency basis; provided, however, that to the extent practical under the conditions of the emergency, the council shall declare an emergency; In order to fund the purchase of the replacement system, Mr. Cushing is recommending a budget transfer from the division's 2016 Normal Growth and Repair Central Office Switching capital account. Staff is seeking City Council concurrence with the declaration of public emergency and purchase of the replacement halon fire suppression system from Yukon Fire Protection. The Telecommunications Division Manager will be attending the City Council meeting of March 17, 2016, in order to address any questions and/or concerns that Councilmembers may have.

2 A motion has been prepared for City Council consideration. RECOMMENDATION Pursuant to Section (a)(7) of the Ketchikan Municipal Code, it is recommended that the City Council adopt the motion declaring the replacement of the Telecommunications Division's Central Office halon fire suppression system as a public emergency; authorizing the procurement of a new replacement halon fire suppression system from Yukon Fire Protection of Anchorage, Alaska at a cost not to exceed $49,000 without competitive bidding and/or quotes; authorizing a budget transfer of $49,000 from the Telecommunications Division's 2016 Normal Growth and Repair - Central Office Switching capital account to the Halon Fire Suppression System Replacement capital account; approving funding from the Telecommunications Division's Halon Fire Suppression System Replacement capital account; and directing the General Manager to execute the contract documents on behalf of the City Council. Recommended Motion: Pursuant to Section (a)(7) of the Ketchikan Municipal Code, I move the City Council declare the replacement of the Telecommunications Division's Central Office halon fire suppression system as a public emergency; authorize the procurement of a new replacement halon fire suppression system from Yukon Fire Protection of Anchorage, Alaska at a cost not to exceed $49,000 without competitive bidding and/or quotes; authorize a budget transfer from the Telecommunications Division's 2016 Normal Growth and Repair- Central Office Switching capital account to the Halon Fire Suppression System Replacement capital account; approve funding from the Telecommunications Division's Halon Fire Suppression System Replacement capital account; and direct the General Manager to execute the contract documents on behalf of the City Council. AGENDA - 03/17/16- KPUNB4

3 KPU Telecommunications 2970 Tongass Avenue K etchikan, AK Phone (907) Fax (907) Memorandum To: From: Karl R. Amylon, KPU General Manager Ed Cushing, KPU Telecommunications Division Manager Date: March 8 1 h, 2016 RE: Halon Discharge and Request for Declaration of a Public Emergency The purpose of this memorandum is to confirm that: 1. On 03/08/2016, a KPU technician accidentally caused KPU Telecommunication's Halon Fire Suppression system to activate, causing the Halon system to discharge. 2. The Halon system is designed to suppress a fire via removing all the oxygen from KPU's central telecommunications I primary switching and data room - lacking oxygen a fire is 'snuffed' thereby preventing potential loss of KPU's entire Internet, Television, Voice, 4G/L TE, and Data systems - loss of which would otherwise be catastrophic (note that sprinkler and or other extinguisher systems are not utilized in electronic environments, as a liquid-based discharge would destroy our electronic equipment). 3. Given the controlled nature of Halon gas - there is no replacement Halon available in Ketchikan. Replacement must be shipped from Seattle. In the meantime, we will be without a suppression system for approximately 7-10 days. 4. Although our main CO facility is equipped with a robust fire-alarm system - until such time as our Halon system is back on-line - it would be imprudent to leave our main CO facility unattended - in event of a fire, seconds will literally matter. 5. Accordingly, I've asked the Telecom management team to schedule technicians to work overtime to be physically present on-site at all times throughout the period during which we lack a fully-charged Halon suppression system. Although the cost of overtime wages will be extreme (since there is not sufficient time to schedule the OT via a shift-change) it is a cost of business we should bear- an ounce of prevention Due to our current lack of Halon fire suppression - as well as the cost of overtime 'fire watch' wages - we need to restore fire-suppression capability to the central office as soon as possible. Accordingly this memorandum formally requests that the KPU General Manager declare a public emergency so that the Telecommunications Division can purchase the required Halon equipment immediately - without competitive bidding our quotes. In reviewing options for re-establishing Halon-type fire suppression in the

4 central office, it is clear that updating the system to a FM-200 agent is the best alternative as it is no longer feasible to recharge the existing (30 year old) system. The replacement system will be purchased from Yukon Fire Protection, of Anchorage, Alaska. The replacement system will cost approximately $49,000 - funding will be provided from within the 2016 KPU Annual Budget under KPU Normal Growth and Repair- Central Office Switching Capital Project. Cc: David Martin, Dan Lindgren, Victor Esposito, Bob Newell

5 Ketchikan Purchasing - When competitive bidding or quotations are not required. Page 1 of G5V Purchaaing- When c:ompelltiwe bidding or quotations are not required. (a) The folfowing may be purchased or contracted for without competitive bidding or soliciting quotations: (1) Supplies, materials, equipment, contractual services, the cost of which does not exceed $10,000 in a single transaction; (2) Supplies, materials, equipment or contractual services which can be furnished only by a single dealer, which have a uniform price wherever purchased or which are telecommunications supplies, materials, or equipment purchased by KPU for retail sale or lease; (3) Supplies, materials, equipment or contractual services purchased from another unit of government at a price or rate determined by governmental authority; (4) Supplies, materials, equipment or contractual services purchased from a public utility at a price or rate determined by governmental authority; (5) Contractual services of a professional nature, such as engineering, architectural, legal, medical or consulting services; (6) Supplies, materials, equipment or contractual services which should be purchased from a specific source in order to prevent incompatibility with previously purchased supplies, materials, equipment or contractual services. For purpose of this subsection, the term "incompatibility" is defined as: (A) The inability to interconnect, combine, interchange, or join; or (B) That which causes substantial duplication in maintenance, expertise or training or in the stocking of parts, materials, supplies or replacements. Any purchase which is to be excluded from competitive bidding by the authority of this subsection which exceeds $10,000 must first be approved by the council; C7) Supplies, materials, equipment or contractual services which are required on an emergency basis; provided, however, that to the extern practical under the conditions of the emergency, the cooncil shad declare an emergency; (8) Placement or purchase of insurance; (9) When it is advantageous to the city to enter into a contract with a person, firm or corporation for the same supplies or services under substantially the same terms as such person, firm or corporation is providing another municipal or state government, or the United States, where such supplies or services are being provided the other government unit on the basis of formal bids, price quotations or other competitive proposal procedure or pursuant to a contract with or through such other government unit so that the benefit of the price quotation or other competitive proposal accrues to the city; The Ketchikan Municipal Code is current through Ordinance 1804, passed January 21, 2016.

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