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CITY OF SEWARD,ALASKA
RESOLUTION 2014-090
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, RESCINDING RESOLUTION 2014-077 AND AUTHORIZING
THE PURCHASE OF A PREVIOUSLY OWNED 2012 DODGE
DURANGO AS A REPLACEMENT ELECTRIC DEPARTMENT
VEHICLE FOR AN AMOUNT NOT TO EXCEED $21,000 AND
APPROPRIATING FUNDS
WHEREAS, the Electric Department's Ford Escape (vehicle #532) was involved in an
collision on June 19, 2014 and subsequently deemed a total loss, 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 City Council passed Resolution 2014-077 on September 22, 2014,
authorizing the City Manager to purchase a new Dodge Journey using the state's procurement
procedure for an amount not to exceed $23,939 from Anchorage Chrysler; and
WHEREAS, Anchorage Chrysler no longer offers the 2014 Dodge Journey under the
6.. state procurement contract due to the end of the model year; 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 of approximately $21,000; and
WHEREAS, the Electric Department gathered quotes for comparable vehicles; and
WHEREAS, the Electric Department has located a previously owned mid-size SUV,
Dodge Durango, at a local vendor for $21,000; and
WHEREAS, Kelley Blue Book Website shows a fair market value for 2012 Dodge
Durango in good condition to be purchased from a dealership to be valued at $24,313.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The City Council hereby rescinds Resolution 2014-077 to purchase a 2014
Dodge Journey on the state's procurement list.
Section 2. The City Manager is hereby authorized to purchase a previously owned 2012
Dodge Durango from Hertz Seward for an amount not to exceed $21,000 and appropriating
funds.
CITY OF SEWARD, ALASKA
RESOLUTION 2014-090
Section 3. Funding is hereby appropriated from the Motor Pool Fund Insurance Recovery
account no. 03000-3001-4632 to the motor pool capital equipment account no. 15000-3001-
8103.
Section 4. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27th day of
October, 2014.
THE CITY OF SEWARD, ALASKA
AS/ /'
can Bardarson, Mayor
AYES: Keil, Casagranda, Terry, Butts, Darling, Bardarson
NOES: None
ABSENT: Squires
ABSTAIN: None
ATTEST:
- 4./44 %air ,
J•hanna Kin1, CMC
ity Clerk
(City Seal)
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Council Agenda Statement
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Meeting Date: October 27, 2014 Kio
Through: Jim Hunt, City Manager
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From: John Foutz, Electric Utility Manager
Agenda Item: Rescind resolution 2014-077 and purchase a pre-owned vehicle with the
insurance reimbursement
BACKGROUND &JUSTIFICATION
On June 19th,2014 an electric department employee was involved in a collision with another vehicle
that resulted in the 2012 Ford Escape(vehicle#532)being deemed a total loss. The other driver at
was found to be at fault and their insurance agency has stated in writing it will pay for the totaled
vehicle. AMLJIA negotiated a final settlement with the other driver's insurance agency for an
amount of$21,004.56.
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 with a V-8 engine. 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.
On September 22nd the council passed a resolution authorizing the city manager to purchase a new
vehicle using the state's procurement procedures for an amount not to exceed$23,939. 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. The dealership is no longer
offering this model due to the model year close-out and they are unwilling or unable to transfer
vehicles from other dealerships. The next mid-size SUV on the state's procurement matrix is
approximately$3,000 higher.
The electric department has located a pre-owned 2012 Dodge Durango with approximately 35,000
miles for an amount equal to the insurance settlement($21,000) from a local vendor.
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.
6.10.125. Purchase of used equipment exempt.
Restrictions and provisions of this title shall not apply where the city council determines that the
public interest would be best served by the purchase of used equipment and, by resolution,
authorizes the city manager to locate and purchase a particular type and quantity of used
equipment. / r
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INTENT: To rescind resolution 2014-077 authorizing the purchase of a 2014 Dodge Journey
through the state's procurement contract and purchasing a pre-owned mid-size SUV for an amount
not to exceed the insurance settlement of$21,004.56.
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan X
2 Strategic Plan:The mission of the City of Seward government it is to
provide quality leadership and economic wellbeing of its citizens X
3 Other(list): Consistent with the City's vehicle replacement policy
established in 2009 X
FISCAL NOTE: The purchase of the pre-owned vehicle will not exceed the amount received in the
insurance settlement and,therefore,will not impact the electric department. Any excess funds from
the insurance settlement will be misellaneous revenue in the electric department.
Approved by Finance Department: r‘
ATTORNEY REVIEW: Yes No X
RECOMMENDATION: (AO
Council approve Resolution 2014-_,rescinding resolution 2014-077 and approving the purchase of
a pre-owned mid-size SUV for an amount not to exceed $21,000.
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