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HomeMy WebLinkAboutRes2005-093 Sponsored by: Corbridge ..... CITY OF SEWARD, ALASKA RESOLUTION 2005-93 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, DETERMINING THAT IT IS IN THE PUBLIC'S INTEREST TO WAIVE THE NORMAL BID PROCESS PER SEWARD CITY CODE 6.10.130, AUTHORIZING THE PURCHASE OF A 50-TON REPLACEMENT BOAT LIFT FROM MARINE TRA VELIFT, AND APPROPRIATING FUNDS WHEREAS, the City of Seward purchased its existing 50-ton travelift from Marine Travelift in 1978 at a price of$69,282 and the lift has been in operation for nearly 30 years and has reached the end of its useful life; and WHEREAS, the City administration has determined that the existing boat lift must be taken out of service as it poses a significant potential liability to the City iflifts continue to be performed utilizing this machine; and WHEREAS, lifting and launching boats is a valuable service provided by the Seward Boat Harbor to commercial and recreational vessels, and while this service does not generate a profit, the City administration supports this loss-leader in an effort to encourage the use of the Seward harbor; and ..... WHEREAS, the administration forwarded this issue to the Port and Commerce Advisory Board ("P ACAB") in February and March, 2005, and in its Resolution 2005-01, P ACAB defeated a measure aimed at recommending that the City administration issue a letter to the public to solicit expressions of interest from the private sector to privatize the operation ofthe 50-Ton lift, and in its Resolution 2005-02, P ACAB defeated a motion to purchase a replacement 50-Ton lift; and WHEREAS, the City is currently utilizing $2 million in grant funds to refurbish the T -Dock which will now have the capacity to safely haul vessels utilizing the new 50-Ton lift; and WHEREAS, the Harbor Enterprise Fund began making annual payments in 2005 to the Motor Pool Internal Service Fund in the amount of$30,000, to pay the cost of replacing the 50-Ton lift; and WHEREAS, the City administration finds that it is in public interest to waive the normal bid process per see 6.10.130 to pursue a sole source contract with Marine Travelift, Inc. to replace the existing equipment, based on: 1) the excellent maintenance history of the existing Travelift; 2) the limited availability of such equipment in Alaska; 3) the positive history between the City and the Marine Travelift company; 4) comparative research conducted by the harbor staff, demonstrating the ..... superiority of this equipment over other comparable equipment; and 5) and Marine Travelift's willingness to provide a trade-in allowance to the City for the existing lift. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: . ...J Section 1. The Seward City Council determines that it is in the public interest to waive the normal bidding process per Seward City Code 6.10.130 for the reasons described in the recitals above, which recitals are incorporated herein by this reference, and authorizes the city manager to purchase a 50-ton Mobile Boat Lift from Marine Travelift, for an amount not-to-exceed $230,000, including freight. Section 2. Funds in the amount of $230,000 are hereby appropriated from the Motor Pool Internal Service Fund's retained earnings account no. 102-0000-3050 to the equipment account no. 102-1020-5930, with said funds to be reimbursed by the Harbor Enterprise Fund at the annual rate of $30,000, plus interest at the federal funds rate in effect on the date of adoption of this resolution. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 26th day of September, 2005. AYES: NOES: ABSENT: ABSTAIN: ATTEST: THE CITY OF SEWARD, ALASKA r:~ Ah/~~ Vanta Shafer, Mayor ! ....l Branson, Dunham, Valdatta, Amberg, Lorenz, Shafer Clark None None A~OLc Vohanna Dollerhide Assistant City Clerk (City Seal) ,~"nIlU", _~..'\.'-{ OF Sl:l./", "....I'T~' '~',""" V~A'" ," () ,'.~'c.r.?oPJ~:'..""~ ~ , ...:-~'0 -~ It V ~ ~",:';" -+-- ~"\". -.- i Y. : : Q"f'\ ."'\L : : ~.~ ~ ' . 1"" " .. _ '.... ..__.~., . . v .. -- :: "''',.. ".... ','.1; """.': ~. .... V/f 1 .l) ....,?o~.. ..', ... I' ,It "'=-'!<...-.. ~ .......... ......... .~.".. <'~.. . . -- ~"."~ -':r.' OF Po.\.. .,.P 11.!!':ts.'~~"" I ..... Council Agenda Statement Meeting Date: September 26, 2005 Through: Clark Corbridge, City Manager From: Scott Ransom, Harbormaster Agenda Item: Marine Travelift Replacement BACKGROUND & JUSTIFICATION The City of Seward purchased its existing 50-ton travelift from Marine Travelift, Inc. in 1978 for $69,282. This machine has been in operation for nearly 30 years and has reached the end of its useful life. The harbor crew has worked hard to ensure the safe operation of this equipment, and has had excellent experience working with this machine and with personnel from Marine Travelift, Inc. The harbor has found it necessary to reduce the capacity of vessels lifted with this equipment, in order to ensure safety. The administration believes that continuing to use this Travelift may pose a safety threat to harbor personnel, and exposes the City to potential liability associated with lifting vessels. It is time to retire this equipment in order to protect the City and its employees. The ability to lift and launch boats is a valuable service provided by the Seward Small Boat Harbor to its commercial and recreational customers. Given the cost to replace a travelift, and the limited number of lifts provided each year (approx. 300), this service is considered to be a loss-leader. In other words, boat lifts do not generate a profit, but the service is valuable in that it attracts users to the Seward harbor who otherwise may choose to go elsewhere to lift their boats. Based on the 2005 budget process -- in which the administration informed the City Council of its intent to retire the travelift – the harbor staff forwarded a request to the Port and Commerce Advisory Board, seeking direction on whether to privatize the boat lift operations. PACAB defeated Resolution 2005-01 (2 in favor, 3 opposed) which recommended that the administration issue a letter to the public to solicit expressions of interest from the private sector to privatize operations of the 50-Ton lift. Based on the outcome of this vote, PACAB again addressed the issue in February, 2005, where they also defeated Resolution 2005-02 which sought to purchase a replacement 50-Ton lift. The actions of the Port and Commerce Advisory Board do not provide clear direction to the City. While it appears clear that PACAB does not wish to privatize operations of the lift, it appears that they are asking the administration to continue to operate equipment that has reached the end of its useful life. PACAB’s deliberations indicate support to continue providing boat lifts in the Seward harbor. For safety reasons, the City is unable to continue operating this equipment, and has to choose between replacing the equipment, or getting out of the business of operating a boat lift. The administration has had excellent experience working with representatives of Marine Travelift over the past 30 years. The equipment provided by Marine Travelift has a good maintenance history, and due to the limited availability of this type of equipment, and comparative research conducted by harbor staff, we find it in the public interest to waive the normal bidding requirements per Seward City Code 6.10.130, and purchase a replacement 50-ton Boat Lift from Marine Travelift, Inc. The City will Resolution 2005- Replacement of 50-Ton Boat Lift Page Two receive a trade-in on the existing lift equal to $15,000. The cost of the new travelift (excluding trade-in) is approximately $230,000, including freight. 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 Harbor Enterprise Fund began making annual payments to the Motor Pool Fund in 2005, in the amount of $30,000, and will continue making such payments to the Motor Pool Fund, including interest at the federal funds rate in effect on the date of adoption of the resolution, since there is not yet sufficient Harbor reserves in the Motor Pool Fund to pay for the 50-Ton Travelift. Approved by Finance Department: _________________________________ RECOMMENDATION City Council determine it is in the public’s interest to waive the normal bid process per SCC 6.10.130, authorize the purchase of a 50-ton replacement boat lift from Marine Travelift, and appropriate funds.