HomeMy WebLinkAboutRes2004-007
Sponsored by: Shealy
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CITY OF SEWARD, ALASKA
RESOLUTION 2004-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA AUTHORIZING THE CITY MANAGER TO
PURCHASE VEHICLES FOR VARIOUS DEPARTMENTS FROM
KENAI CHRYSLER CENTER USING THE STATE OF ALASKA
DEPARTMENT OF TRANSPORTATION CONTRACT #1661087
FOR $99,755
WHEREAS, the FY 2004 Motor Pool Budget approved by Council Resolution
2003-132 included money for four replacement vehicles for various departments; and
WHEREAS, these vehicles are medium duty utility trucks for operations and
maintenance of the departments. As with other city vehicles, they also serve as
emergency response vehicles under the city and borough emergency response plans; and
WHEREAS, the vehicles to be replaced are a 1994 Chev pick-up with 74,000
miles, and a1993 3/4 ton 2WD PU with 78,000 miles and a 1992 Ford 1 ton PU with
92,000 miles; and
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WHEREAS, the replaced vehicles will be traded in at the dealer for the fair
market value as determined by the NADA Vehicle Guide, which will be deducted from
the overall price ofthe new vehicles; and
WHEREAS, these vehicles are vested in the Motor Pool Fund, that is, they have
paid enough money to fund their replacement and are continually funded in the annual
budgets for payments in to the Motor Pool Fund; and
WHEREAS, purchasing these replacement vehicles will not mcrease the
department budgets; and
WHEREAS, the replacement vehicles will be three 2004 Dodge 2500 and one
2003 Dodge 3500 work trucks under the State of Alaska Department of Transportation,
contract #1661087; and
WHEREAS, this vehicle order is piggy-backed onto the existing state contract
with this dealer; and
WHEREAS, the suggested retail price of this truck package is in excess of
$139,000 and after applying the negotiated state contract discount, the trucks are
available for $99,755, a savings of$39,24S; and
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WHEREAS, the replacement vehicle will provide additional capability for
towing equipment, boats and trailers and;
CITY OF SEWARD, ALASKA
RESOLUTION 2004-07
WHEREAS, the replacement vehicle will be four wheel drive versus two wheel
drive, an essential safety factor for winter time use and is equipped with modern restraint
and supplemental restraint systems for the safety of the occupants, a significant
improvement over the existing vehicles; and
WHEREAS, this is a one-for-one replacement and there will be no net increase in
vehicles for the departments, with the exception of adding one additional vehicle to the
Water and Sewer Fund.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, that:
Section 1. The City Manager is authorized to purchase four replacement vehicles
from Kenai Chrysler Center on the State of Alaska Department of Transportation contract
#1661087 for $99,755.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska
this 12th day of January 2004.
THE CITY OF SEWARD, ALASKA
c.) J?Ntd ~
C. David Brossow, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Shafer, Dunham, Valdatta, Branson, Brossow
Amberg, Clark
None
None
ATTEST:
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(City Seal)
COUNCIL AGENDA STATEMENT
Meeting Date: January 12, 2004
Through: Phil Shealy, City Manager
From: W.C. Casey, Director of Public Works
Agenda Item: Authorizing the City Manager to Purchase Replacement
Vehicles for Various Departments.
BACKGROUND & JUSTIFICATION:
The FY 2004 Motor Pool Budget approved by Council Resolution 2003-132
included money for four replacement vehicles for the Public Works, Water and Sewer, Harbor and
Electric Departments. These vehicles are medium duty utility trucks for operations and maintenance
activities in the various departments. As with other city vehicles, they also serve as emergency
response vehicles under the city and borough emergency response plans.
The vehicles to be replaced are:
Vehicle Miles Purchased Use
1992 1 ton Ford 92,000 New in 1992 Utility Truck
1994 Chev Pick-up 74,000 New in 1994 Director of P/W’s vehicle
1993 3/4 ton 2WD PU 78,000 New in 1992 Fuel Pump truck
Equipment transport (Pumps,
welder, compressors)
TraveLift support
The above vehicles are vested in the Motor Pool Fund. They have paid enough money to fund the
replacement. Additionally, these vehicles are continually funded in the annual budget for payments
into the Motor Pool Fund. As such, there is no impact on the annual budgets as a result of
replacing these vehicles.
One vehicle will be added to the fleet. Water and Sewer will gain a utility truck, which will be a
new purchase.
Replacement Vehicles - 2004 Dodge 2500, standard work truck specs for the State of Alaska
Department of Transportation, contract #1661087 for the Water/Sewer, Public Works and
Harbor trucks. The Electric line truck will be a 2003 Dodge 3500. This vehicle order is piggy-
backed onto the existing state contract with this dealer. The suggested retail price for the 2500
truck package is in excess of $34,000 and over $38,000 for the 3500 truck package. Applying
the negotiated state contract to these vehicles, with incentives, the 2500 truck is available for
$23,478 and the 3500 truck for $29,321. Using the state contract, these vehicles are several
thousand dollars less than new vehicles purchased in 1999.
The replacement vehicles will reduce overall maintenance costs of maintaining older vehicles as
well as provide additional capability for towing equipment, boats and trailers. The new vehicles
will be four wheel drives versus two wheel drive, an essential safety factor for winter time use.
They also come equipped with modern restraint and supplemental restraint systems for the safety
of the occupants, a significant improvement over the existing vehicles.
This is a one-for-one replacement, with the exception of the Water and Sewer Department. This
Department will gain one ¾ ton utility truck. There will be no net increase in vehicles for the
other departments. Additionally, the dealer has agreed to take the old vehicles in trade, using the
NADA vehicle guide to establish a fair market value and deducting this amount from the cost of
the new vehicles.
1. Comprehensive Plan _
2. Strategic Plan ___
3. Other: FY 2004 Budget, Motor Pool Fund X
FISCAL NOTE:
Purchase of these vehicles was approved in the FY2004 Motor Pool Fund Budget by City Council
Resolution 2003-132. These vehicles are currently paying in to the fund each year for replacement
and there is no impact on the operating budgets of the various departments. The value of the
replaced vehicles will be determined using the NADA vehicle book. The proceeds from the trade of
these vehicles will be deducted from the sale price of the new vehicles.
Approved by Finance Department
RECOMMENDATION:
Council approves Resolution 2004-07, authorizing the CityManager to purchase four vehicles from
Kenai Chrysler Center on the State of Alaska Department of Transportation contract for $99,755.