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HomeMy WebLinkAboutRes2009-066Sponsored by: Oates CITY OF SEWARD, ALASKA ~... RESOLUTION 2009-066 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING PURCHASE OF A USED RATHER THAN NEW WATER TANKER TRUCK FROM CASCADIA INTERNATIONAL, PREVIOUSLY AUTHORIZED BY RESOLUTION 2008-134 WHEREAS, the Public Works Department received Council approval to lease/purchase a water tanker truck (NTE $165,154) on December 8, 2008, in accordance with Resolution 2008-134; and WHEREAS, the Public Works Department was able to obtain less expensive equipment than the specific equipment previously authorized, by purchasing a used, rather than new water tanker truck; and WHEREAS, the City will purchase a used International 7600 Truck with water tanker with less than 2,000 miles, for the price of $106,193; and WHEREAS, the City will pay for the water tanker truck in advance, to be reimbursed through capital financing proceeds at such a time as the City can aggregate the financing of both the water tanker truck and plow/sander truck into a single financing transaction; and WHEREAS, in accordance with Seward City Code 6.10.125, the City Council hereby finds that it is in the public interest to waive competitive procurement requirements and purchase used, rather than new, equipment. 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 a used water tanker truck from Cascadia International, in the amount of $106,193 plus a contingency not to exceed 10% ($10,619) for shipping, tires, or other extraneous costs. Section 2. The Seward City Council hereby finds it in the public interest to waive the competitive procurement requirements per Seward City Code 6.10.125 which exempts the procurement of used equipment from competitive procurement, for the purchase of a used water tanker truck. Section 3. The city manager is hereby authorized to purchase the water tanker truck and accessories outright, and to proceed with capital financing of the equipment in order to be reimbursed through capital lease proceeds. Section 4. This resolution shall take affect immediately upon its adoption. CITY OF SEWARD, ALASKA RESOLUTION 2009-066 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27~" day of July, 2009. THE CITY OF SEWARD, ALASKA -~..,_ Willard Dunham, Vice Mayor AYES: NOES: ABSENT: ABSTAIN ATTEST: Valdatta, Kellar, Smith, Dunham None Bardarson, Keil, Corbridge None Jean Lewis pity Clerk (City Seal) '~~ev~ni~~~i~~ ~~~~ ~~ ~~~.~+ ~~rs~~,o ~.~bf i +S ,,,.N..~ 7i ~ i ~,~, ~' ~'•q~ OF ~~ ~`•`' Council Agenda Statement Meeting Date: July 27, 2009 To: Phillip Oates, City Manager~~ From: Kristin Erchinger, Finance Director Agenda Item: Purchase of Used Water Tanker Truck BACKGROUND & JUSTIFICATION: The Seward City Council previously authorized the purchase of a new water tanker truck in Resolution 2008-134 passed on December 8, 2008. This resolution authorized purchase of a water tanker in an amount not to exceed $165,154. In the process of researching equipment purchases, Kevin Towsley identified and recommended the purchase of an International Water Tanker Truck with less than 2,000 miles, for the price of $106,193. Staff put a hold on this equipment, hoping to purchase this equipment together with aplow/sander truck which had been included in a State bid contract. However, delays associated with the plow/sander truck purchase have made it necessary to ask Council approval to purchase this equipment separate from the plow/sander. To avoid the duplicate costs of financing however, staff intends to purchase both pieces of equipment through a capital lease/purchase, as authorized by Resolution 2008-134. Therefore, the City will pay for the water tanker truck outright, and request reimbursement at completion of financing both pieces of equipment, to prevent the duplicated efforts required to pursue two separate financing transactions. INTENT: Seek Council approval to amend the previous authorization to purchase a new water tanker truck, by purchasing a used water tanker truck, and to pay for the equipment outright utilizing City cash, with the intent to be reimbursed through capital lease proceeds at the completion of financing. CONSISTENCY CHECKLIST: Where applicable, this resolution/ordinance is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: Funding for this purchase was previously appropriated in Resolution 2008-134. Approved by Finance Department: V RECOMMENDATION: City Council approve the purchase of a used water tanker truck from Cascadia International.