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
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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
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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
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can Bardarson, Mayor
AYES: Keil, Casagranda, Terry, Squires, Darling, Bardarson
NOES: None
ABSENT: Butts
ABSTAIN: None
ATTEST:
ohann. Kin -y, CMC
ity Clerk
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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
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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.