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HomeMy WebLinkAboutRes2011-114 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2011 -114 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE A SPECIFIC FULL SIZE TRUCK OUTRIGHT IN THE AMOUNT OF $42,360 RATHER THAN PURCHASE IN THE 2012 MOTOR POOL BUDGET FOR $80,000 WHEREAS, the Seward City Council approved a 2012 motor pool budget which includes the purchase of an electric tool truck estimated to cost $80,000; and WHEREAS, the truck slated for replacement was based on a failed design, has a failing transmission, and was only produced for one year, and since that model was discontinued, parts are no longer available except by special order; and WHEREAS, the electric department has found a truck on year end close -out that would meet the needs of the department at a total cost of $46,160 before trade -in, and the dealership will offer a trade -in discount of $3,800 -- which is more than would be expected to receive in a City surplus sale -- resulting in a total purchase price of $42,360; and WHEREAS, Seward City Code §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." 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 vehicle 2011 Chevy Silverado, 3500HD extended cab, VIN # 1 GB5KZCG4BZ303217 in the total amount after rebate, of $42,360. Section 2. Funding in the amount of $42,360 is hereby allocated from the Motor Pool reserves account 102 - 0000 -3050 to the motor pool equipment account number 102 -1020 -5930, effective for the 2011 budget, and the amount included in the 2012 Motor Pool Budget for this vehicle ($80,000) is hereby unappropriated from the 2012 budget. Section 3. This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12` day of December, 2011. L CITY OF SEWARD, ALASKA RESOLUTION 2011-114 THE CITY OF SEWARD, ALASKA //- David Seawa , Mayor AYES: Valdatta, Bardarson, Shafer, Terry, Seaward NOES: Keil, Casagranda ABSENT: None ABSTAIN: None ATTEST: • Johanna Kinney, Kinney, CMC City Clerk (City Seal) 0 01311•81//... "Of S F141 -- **0 - .4t_6t e 1. 4) # 0 cf 4 44 Z -/:. IN . •.% # 4t 4 0 h 0 4. 'NJ Council Agenda Statement Meeting Date: December 12, 2011 To: James Hunt, City Manager From: John Foutz, Electric Utility Agenda Item: Purchase of New Truck to Replace Foreman's Truck BACKGROUND & JUSTIFICATION: In the 2012 motor pool fund, the amount of $80,000 is allocated to purchase a new truck to replace a 2003 Dodge 3500 (vehicle # 504). The electric department started searching for options because this vehicle needs replacing as soon as possible. The old vehicle is no longer manufactured and obtaining repair and replacement parts costs the electric department several additional hours to locate and six to eight weeks to receive. Also, the automatic transmission is believed to be nearly inoperable, which will be expensive to fix and cause the electric department to be down a vehicle for an estimated three to four months for repairs. This vehicle is essentially needed by the electric department to transport the electric crew, tools and materials throughout the electric system. The electric department found an end -of -year sale for a specific vehicle that fits the needs of the electric crew and is priced at an amount of almost half of the estimated replacement cost. The option of using the old vehicle as a trade -in has also been explored. The trade -in value of $3,800 is more than the estimated $2,000 for placing it in the surplus sale. 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. FISCAL NOTE: The Motor Pool 2012 Budget includes replacement of vehicle number 504 (2003 Dodge 3500) at an estimated cost of $80,000. By purchasing outright at a cost of $42,360, the total savings will be approximately $37,640 over what is projected in the 2012 motor pool fund. This resolution will re- appropriate the founds out of 2012 Budget into 2011 Budget. Approved by Finance Department: RECOMMENDATION: Council approve Resolution 2011- OA, authorizing the City Manager to purchase outright, the truck with VIN# 1GB5KZCG4BZ303217 from Chevrolet of South Anchorage.