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HomeMy WebLinkAboutRes2009-132 Sponsored by: Oates *NMI. CITY OF SEWARD, ALASKA RESOLUTION 2009 -132 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO SELECT AND PURCHASE OUTRIGHT, VEHICLES AND EQUIPMENT IN AN AGGREGATE AMOUNT NOT TO EXCEED $286,000 IN 2010 AND $130,000 IN 2011, AND TO PURCHASE HEAVY EQUIPMENT WITH ACCESSORIES, SUBJECT TO OBTAINING FINANCING, IN AN AMOUNT NOT TO EXCEED $380,000 IN 2010, FROM THE MOTOR POOL INTERNAL SERVICE FUND WHEREAS, the City of Seward has completed preparation of its first Biennial Budget, effective for calendar years 2010 and 2011; and WHEREAS, as a part of the Biennial Budget process, John Bird conducted a review of the City's motor pool fleet and developed a replacement plan utilizing criteria such as vehicle condition, mileage, and /or hours, and offered recommendations as to the timing for replacement of existing vehicles and equipment within the City's fleet; and WHEREAS, during the budget process, staff further pared the fleet listing and identified vehicles and equipment which could be eliminated from the fleet, as well as identified items which could be delayed into the future, in order to shore up reserves to mitigate current economic uncertainties; and WHEREAS, the original Motor Pool Replacement Plan identified 123 fleet items totaling $11,815,600, and that list was pared down by 21 items to a new total of $9,016,600; and WHEREAS, the list of vehicles and equipment slated for replacement in 2010 and 2011 includes: two police vehicles; one harbor flatbed; three parks and recreation trucks; a tractor, cube van, sander, flatbed, and dump truck for public works; and a wastewater sewer jet; with the cost of replacement for each vehicle or piece of equipment not to exceed those listed on the attached Motor Pool 2010/2011 Capital Replacement Requirements Listing, totaling $286,000 in 2010 (includes 2009 and 2010 suggested replacements), plus $380,000 subject to obtaining financing fora D6 CAT Dozer, and $130,000 in 2011; and WHEREAS, upon City Council approval, administration will begin to select and purchase these replacement vehicles and equipment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: CITY OF SEWARD, ALASKA RESOLUTION 2009 -132 Section 1. The Seward City Council hereby approves the 2010 /2011 Motor Pool Capital Replacement Plan. Section 2. The Seward City Council hereby authorizes the city manager to select and purchase outright, replacement vehicles and /or equipment to replace those items listed on the attached Motor Pool Fund 2010/2011 Capital Replacement Requirements list, in amounts not to exceed the amounts listed for each individual vehicle and /or piece of equipment, with 2009 and 2010 outright purchases totaling not -to- exceed $286,000, to be purchased in 2010, and 2011 purchases totaling not -to- exceed $130,000. Section 3. The Seward City Council hereby authorizes the city manager to select and purchase outright, an International 7400 Dump Truck for an amount not -to- exceed $110,000, with said amount included within Section 1 ($286,000) above. Section 4. The Seward City Council hereby authorizes the city manager to select and lease /purchase a D6 CAT Dozer subject to financing and funding, not to exceed $380,000 in 2010. Section 5. This resolution is effective immediately upon adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 23rd day of --- November, 2009. THE CITY • F SEWARD, ALASKA �$ .�/ Willard E. Dunham, Mayor AYES: Valdatta, Bardarson, Smith, Shafer, Dunham NOES: Keil, Amberg ABSENT: None ABSTAIN: None ATTEST: Jean Lewis City Clerk (City Seal) N � •( 1 a ". lx 0 r�l Council Agenda Statement Meeting Date: November 23, 2009 Through: Phillip Oates, City Manager From: Kristin Erchinger, Finance Director V itt Agenda Item: Purchase of 2010 and 2011 Motor Pool Fleet Replacement Vehicles and Equipment BACKGROUND & JUSTIFICATION: In preparation for the City of Seward's first biennial budget, the city manager commissioned a study of the City's motor pool fleet aimed at: 1) determining whether the City's contributions to the motor pool fund were sufficient to meet the goal of forward- funding replacement of the City's fleet vehicles and equipment; 2) identifying all equipment and vehicles in the fleet; 3) assessing the condition (mileage, hours, age) of each item in the fleet; and 4) developing a systematic replacement plan to simplify the process of requesting annual replacement of equipment and vehicles. The result of this study was the development of the Motor Pool Capital Replacement Plan. This Plan lists all of the equipment and vehicles in the City's fleet, and prioritizes those items into the specific year in which replacement should occur. In determining the timing for replacement. John Bird utilized criteria including the current condition of the item, the total miles or hours on the equipment, and the age of the equipment. The unedited result of his work is attached hereto as Exhibit C, and recommends 2010 budget replacements totaling $1,672,000 (includes items he recommended for replacement during 2009 or 2010), and 2011 budget replacements totaling $1,667,000. During the budget process, staff pared down the items on Exhibit C (from 123 total items) by identifying items to be completely removed from the motor pool fleet (21 items totaling $2,799,000), items which could be purchased used rather than new, (resulted in savings of $69,000), and items which replacement could be postponed to a later year ($740,000). The explanation for each item is attached hereto as Exhibit B. The final recommendation to the city council is reflected in Exhibit A. This schedule shows purchases in 2010 (includes 2009 and 2010 items) totaling $286,000, the lease /purchase of a CAT tractor totaling $380,000 in 2010, and purchases in 2011 totaling $130,000. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: ATTORNEY REVIEW: INTENT: The intent of this resolution is to obtain Council approval of the 2010/2011 Motor Pool Capital Replacement Plan, and authorization to purchase the replacement vehicles and equipment for cach of the items listed on Exhibit A. Upon authorization, departments will begin the process of purchasing replacement vehicles and equipment. FISCAL NOTE: Total appropriations for 2010 will be $286,000, which includes items under $50,000 and the purchase of an International 7400 dump truck for an amount not -to- exceed $110,000. A lease /purchase for an amount not -to- exceed S380,000 for a D6 CAT tractor is authorized for 2010. Total appropriations for 2011 are $130,000. Approved by Finance Department: J` 4a� ��2C�,lr•$G RECOMMENDATION: Seward City Council approve Resolution 2009 4 approving the 2010/2011 Motor Pool Capital Replacement Plan, authorizing the city manager to select and purchase outright, vehicles and equipment in an aggregate amount not to exceed S286,000 in 2010; to select and purchase outright, vehicles and equipment in an aggregate amount not to exceed $130,000 in 2011; and to purchase heavy equipment with accessories, subject to obtaining financing, in an aggregate amount not to exceed S380,000 from the motor pool internal service fund.