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HomeMy WebLinkAboutRes2014-077 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2014-077 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, USING THE STATE'S COMPETITIVE PROCUREMENT PROVISIONS AND AUTHORIZING PURCHASE OF A NEW DODGE JOURNEY SXT IN THE AMOUNT OF $23,939.00, AND APPROPRIATING FUNDS WHEREAS, the Ford Escape (vehicle #532) was crashed and totaled on June 19, 2014 and a replacement vehicle must be acquired; and WHEREAS, the Escape proved to be inadequate for the purpose it was purchased and a mid-size SUV would be more appropriate; and WHEREAS, the State of Alaska has a procurement contract resulting from a competitive bid process, for mid-size SUV's from four vendors in the state recommending the purchase of the Dodge Journey SXT from Anchorage Chrysler for$23,939; and WHEREAS, the city will be receiving a check from the other driver's insurance agency for the totaled value of the Escape for an amount yet to be finalized; and fl WHEREAS, the amount additional to the insurance reimbursement will come from the Electric Enterprise Fund reserves and is estimated to cost $2,935; and WHEREAS, purchasing this vehicle on the state's procurement saves the city approximately $7,731 versus purchasing the same vehicle from the same dealer according the their website; and WHEREAS, the state procurement price for the Dodge Journey is $1,854 over the price of the Ford Escape purchased in 2012. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council hereby waives the competitive procurement requirements of the City Code in accordance with Seward City Code 6.10.120(B) which authorizes the purchase of products or services utilizing competitive bids obtained by other governmental entities. Section 2. The City Manager is hereby authorized to purchase a new Dodge Journey SXT utilizing the contract with Anchorage Chrysler, resulting from the State of Alaska's competitive bids, in the amount of $23,939. Funding for this purchase will come from insurance reimbursement proceeds with the remainder to be appropriated from the Electric Enterprise Fund reserves, charged to capital equipment account no. 15000-3000-8103. CITY OF SEWARD, ALASKA RESOLUTION 2014-077 arr a Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22nd day of September, 2014. THE CITY OF SEWARD, ALASKA IPaiv 49()%daWevti can Bardarson, Mayor AYES: Keil, Casagranda, Terry, Squires, Darling, Bardarson NOES: None ABSENT: Butts ABSTAIN: None ATTEST: ohann. Kin -y, CMC ity Clerk ., � tY #nRg y6o (City Seal) •.g '' , " • .. n: \y •`;, u . i ® : .�__+, �'. _. : 931 i 0 •� 7M • OF"'tPiw 7KLO re �' Agenda Statement Meeting Date: September 22, 2014 To: Seward City Council Through: Jim Hunt, City Manager From: John Foutz, Electric Utility Manager Agenda Item: Purchase of a replacement vehicle for the damaged Ford Escape BACKGROUND & JUSTIFICATION th On June 19, 2014 an electric department employee was involved in an accident with another vehicle that ended up totaling the 2012 Ford Escape (vehicle #532). Most importantly no one was severely injured in the accident. The police report determined the other driver at fault and their insurance agency has stated in writing they will pay for the totaled vehicle. At the time of this submission AMLJIA was continuing to negotiate a final settlement with the other driver’s insurance agency for a final price on the Escape. The final amount will be within $19,000 and $21,000. The Escape saved the electric department money by using it to travel to meetings out of town instead of using one of the larger vehicles. However, during some situations, the vehicle was not large enough to fulfill the needed requirements. The vehicle must be large and powerful enough to go into places during flood events or potential customers not on a maintained road. Upgrading from a small- size, 4-cylinder SUV to a mid-size, V6 SUV is necessary. The State’s procurement matrix lists four vendors for a mid-size SUV, with the lowest price for the Dodge Journey SXT, model JCEE49 at $23,939.00 from Anchorage Chrysler. Performing a search on the same dealer’s website yielded the same vehicle at a price of $31,670.00. In 2012 the council passed by resolution (2012-021) the purchase of the Ford Escape for the amount of $22,085.00. Seward City Code Reference: 6.05.020(C). Minor purchase procedures. All purchases of passenger vehicles shall be subject to the provisions of § 6.10 and shall be considered major purchases. 6.10.120(B). Specialized products and professional services exempt . The city may utilize competitive bids obtained by other governmental units. INTENT: To authorize purchase of a new Dodge Journey SXT using the State’s procurement for an already negotiated price of $23,939.00 paid by the insurance settlement and the remainder coming from the operating budget of the electric department. CONSISTENCY CHECKLIST: Yes No N/A 1.Comprehensive Plan X Strategic Plan:The mission of the City of Seward government it is to 2.X provide quality leadership and economic wellbeing of its citizens Other (list): Consistent with the City’s vehicle replacement policy 3.X established in 2009 FISCAL NOTE: The purchase of a new Dodge Journey SXT is replacing a damaged vehicle and the majority of the purchase will be made by the insurance reimbursement proceeds estimated at between $19,000 and $21,000 by AMLJIA, with the remaining amount paid from Electric Enterprise Fund reserves in an amount not to exceed $5,000.. Approved by Finance Department: __________________________ ATTORNEY REVIEW: Yes________ No____X_____ RECOMMENDATION: Council approve Resolution 2014-077,using the state’s competitive procurement, the purchase of a new Dodge Journey SXT based on the recitals incorporated herein, and authorizing purchase of a new SUV for an amount not to exceed $23,939.00.