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HomeMy WebLinkAboutRes2017-046 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2017-046 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,AUTHORIZING THE CITY MANAGER TO PURCHASE A L70 LOADER FROM CONSTRUCTION MACHINERY INDUSTRIAL, UTILIZING THE NJPA GOVERNMENT PURCHASING CONTRACT IN AN AMOUNT NOT-TO-EXCEED $160,600.00, PLACING ADMINISTRATIVE FEES FROM THE SMIC DEVELOPMENT GRANT INTO THE SMIC FUND FOR SMIC INFRASTRUCTURE IMPROVEMENTS, AND APPROPRIATING FUNDS WHEREAS,during one of the snow events in early 2017,the City's 966C loader located at SMIC had a catastrophic failure, as well as needing extensive steering repair; and WHEREAS,in 2002 and 2004 the City Council approved Resolutions 2002-033 and 2004- 53 for funds to repair the 966C loader; and WHEREAS,again in 2014 the City shipped the loader to Anchorage and spent an additional $22,164.20 for repairs; and WHEREAS,the City received a quote from NC Machinery in the amount of$66,157.31 to repair the steering and to replace/rebuild the engine on the current loader; and WHEREAS, the 966C loader is over 37 years old and to continue to spend city funds to repair this machine is not in the best interest of the City of Seward; and WHEREAS, Seward City Code 6.10.120 allows for the exemption from competitive bids where the public interest would be best served by the purchase of new equipment utilizing a special government rate; and WHEREAS, the City received a quote from Construction Machinery Industrial (CMI) utilizing the National Joint Powers Alliance(NJPA)government rate in the amount of$160,600.00 for a L70 Volvo loader with a snow bucket and forks,which would also be compatible with the street department's other Volvo attachments and parts currently on the shelf; and WHEREAS, The SMIC development project has a 10% administrative fee which will be placed into SMIC Fund to pay for SMIC infrastructure; and WHEREAS,the SMIC fund 12000-0000-5899-0000-00000 will be used to purchase the new L70 loader from CMI. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CITY OF SEWARD, ALASKA RESOLUTION 2017-046 SEWARD, ALASKA, that: Section 1. The Seward City Council authorizes the placement of the SMIC development grant administrative fees into SMIC account 12000-0000-5899 rather than the General Fund,to be used to fund SMIC infrastructure. Section 2. The Seward City Council hereby authorizes the City Manager to purchase a L70 loader with snow bucket and forks from CMI. utilizing the NJPA government purchasing contract. Section 3. The amount of$160,600.00 is hereby appropriated from administrative fees account no. 12000-0000-5899 to capital equipment account no. 12000-0000-8103. Section 4. In accordance with Seward City Code 6.10.120,the Seward City Council hereby finds that it is in the public interest to allow the procurement of this equipment utilizing a competitive bid from the National Joint Powers Alliance, based on the recitals above which are incorporated herein. Section 5. The old 1980 Caterpillar loader with dirt,snow bucket and forks will be included in a future city surplus sale. Section 6. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of August, 2017. THE CITY OF SEWARD, ALASKA .I II 9' ean Bardarson, Mayor AYES: Casagranda, Keil, Squires, McClure, Altermatt, Slater, Bardarson NOES: None ABSENT: None ABSTAIN: None A ZEST: ' ''! , i 1,.1- •. •' INuIS, °J ana kinney, of Ci Clerk Gc .••' .....GOoqj•',•.,V . City Seal) ' SEAL : . A 7 ry .t -**,"c OF S . ,•�E'ss�e.a e. Agenda Statement '.tOf sett. k 0.11 Meeting Date: August 14,2017 q4P • Through: James Hunt, City Manage iv From: Norm Regis, Harbormaster Agenda Item: Authorizing the City Manager to purchase a L70 Loader from CMI,utilizing the NJPA government purchasing contract in an amount not to exceed $160,600 and placing administrative fees from the SMIC development grant into the SMIC Fund BACKGROUND & JUSTIFICATION: The 966C serial number 78G4583 is a 1980 Caterpillar front end loader used by the Harbor and Water& Sewer Departments that needs approximately$66,157.31 in repair work, which does not include shipping to and from Anchorage.The engine had a catastrophic engine failure in early 2017 and the steering is in dire need of repair; the loader at this time has over 20,000 hours on it. This loader is over 37 years old. Council approved Resolution 2002-033 in the amount of$62,670 to fix the 966C and a 1982 grader. Council approved Resolution 2004-53 in the amount of$12,500 to again repair the loader. In 2014 the harbor shipped the loader to Anchorage for cylinder and transmission repairs in the amount of $22,164.20. It is not feasible to continue to spend funds to repair this aging piece of equipment. The harbor has kept up with routine maintenance on this loader with oil changes, greasing and replacing parts as necessary. Last winter it was difficult for the Harbor Department to borrow equipment from the street department,or hire any local contractors because of the large amount of snow that accumulated this year. Hamilton Construction loaned the harbor a loader for two days so the harbor could keep the SMIC boat storage yard open while searching for a loader to lease. After the engine failure,the harbor contacted several companies to lease a loader. At the time,Craig Taylor was the only company who had a loader for lease at a rate of$6,800.00 a month. The harbor leased this loader for two months to get through the remainder of the snow season. This was a significant hit on the SMIC budget. The 966C loader and the 1982 grader are pieces of equipment the harbor, water and sewer have located at SMIC to keep the service roads and the SMIC yard clear. At the price of repairing this loader, it would more beneficial to purchase a new loader that could utilize the City shop's Volvo parts and attachments on hand. The harbor requested a quote from CMI, for a L70 loader utilizing the National Joint Powers Alliance government purchasing contract with forks and snow bucket. The City of Seward has utilized this alternative in the past to purchase new equipment at a discounted government rate. CMI has also supplied a second quote for a used L70 loader with forks,with no warranty or snow bucket for $149,500 FOB Anchorage. A snow bucket is an additional $14,310.00; shipping to Seward would be around$700.00 for a total of$164,510,so the NJPA new equipment purchase is a better value. With the addition of the new travelift,the SMIC yard has been full of activity throughout the year; the harbor needs to keep this yard operational year round.The Seward harbor would like to replace the 1980 CAT loader with a new loader to continue SMIC operations. Seward City Code 6.10.120 allows for purchases of this nature to be exempt from competitive bidding where the public interest would be best served by the purchase of new equipment utilizing a government rate, in this case the National Joint Powers Alliance government purchasing contract. The SMIC Enterprise Fund does not currently generate sufficient revenue to purchase a loader;the funds will come from the 10%administrative fee grant overhead related to the SMIC development project and placed into the SMIC Fund. The old 1980 Cat loader with forks,rock and snow bucket will be sold at the next City Surplus sale. INTENT: Placing a 10%administrative fee from the SMIC development grant into the SMIC Fund,for SMIC infrastructure. To purchase a L70 Volvo loader from CMI,LLC utilizing the NJPA government purchasing contract in an amount not to exceed $160,600.00 with funds from the SMIC development grant administrative fees. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan : Continued development of SMIC(p. 6) X Strategic Plan: Expand development in the Seward Marine Industrial 2. Center (p. 8); The City of Seward is fiscally responsible and utilizes X creative and responsible funding alternatives (p. 20); 3. Other (list): FISCAL NOTE: The 10% administration fee that is charged to the SMIC development grant will generate up to $536,363 and will be placed in SMIC Fund to pay for SMIC infrastructure.The$160,600.00 needed to purchase a new L70 loader will come from this fee. Approved by Finance Department: vt14„� ATTORNEY REVIEW: Yes No X RECOMMENDATION: Seward City Council adopts Resolution 2017-000,authorizing a purchase of a L70 Volvo loader not to exceed$160,600.00 and placing the 10%administration fee from the SMIC development project into the SMIC Fund to fund infrastructure.