HomeMy WebLinkAboutRes2021-076 CITY OF SEWARD,ALASKA
RESOLUTION 2021-076 Sponsored by: Bower
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO REPAIR THE
CITY'S 2001 G740 VOLVO ROAD GRADER, VEHICLE #113, WITH
CONSTRUCTION MACHINERY INDUSTRIAL (CMI) IN THE AMOUNT
OF $62,190.41, PLUS A 10% CONTINGENCY, FOR A TOTAL AMOUNT
NOT TO EXCEED $68,409.45, AND APPROPRIATING FUNDS
WHEREAS,the City's 2001 G740 Volvo Road Grader is an essential piece of equipment
used by the Public Works Department; and
WHEREAS, to continue providing the most cost-effective and highest level of service
possible to the community, it is in the City's best interest to repair the road grader rather than
purchase a new one; and
WHEREAS, the road grader developed transmission problems that were not previously
anticipated or budgeted; and
WHEREAS, the Public Works Shop does not have the specialized equipment necessary
to complete all the repairs; and
WHEREAS, Seward City Code 6.10.120(b) allows the City to utilize a specific product
or professional services which can only be furnished by a single dealer; and
WHEREAS, Construction Machinery Industrial (CMI), the only Volvo dealer in state,
provided an estimate of$62,190.41 to repair the City's 2001 G740 Volvo Road Grader; and
WHEREAS, there is an additional 10% contingency included, which brings the total
amount to$68,409.45; and
WHEREAS,the amount of$10,000 will be returned to the City as long as the transmission
core is sufficient for rebuild.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The City Manager is hereby authorized to repair the City's 2001 G740 Volvo
Road Grader, Vehicle#113, in the estimated amount of$62,190.41,plus a 10%contingency.
Section 2. The Seward City Council finds it is in the public's best interest to sole source the
repairs with Construction Machinery Industrial (CMI) as the only Volvo dealership in state who can
perform the work.
CITY OF SEWARD, ALASKA
RESOLUTION 2021-076
Section 3. Funding in the amount not to exceed $68,409.45 is hereby appropriated from
the Motor Pool reserves account No. 03000-0000-3400, to Motor Pool Repair and Maintenance
Account N. 03000-1 3 1 0-72 1 6.
Section 4.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 July, 2021.
T CIT OF W
risty Terr ayo
AYES: McClure, Casagranda, DeMoss, Seese, Baclaan, Terry
NOES: None
ABSENT: Osenga
ABSTAIN: None
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ATTEST:
rends J. Ball , MMC
City Clerk
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City Council Agenda Statement
Meeting Date: July I2, 2021
To: City Council
Through: Janette Bower, City Manager
From: Doug Schoessler, Public Works Director
Agenda Item: Sole Source request for 2001 G740 Volvo Road Grader Repair
BACKGROUND & JUSTIFICATION:
It has been determined that the 2001 G740 Volvo Road Grader currently used by the Public Works
Department needs major repairs.These transmission problems were not expected or budgeted for in
the 2021 Budget. The Public Works Shop does not have the equipment to complete all of these
repairs and recommends that it be repaired sole source by the only Volvo dealer in-state,
Construction Machinery Industrial, LLC (CMI) in Anchorage. It will be necessary to remove and
replace the transmission as well as other needed repairs that can be done while it is apart. The
estimated cost of repairs was quoted by CMI at$62,190.41. (See Attached). There is a core charge
for the old transmission of$10,000 included. We will receive that credit back as long as the core is
good for rebuild.
Due to the specific nature of the parts and repairs, and per Seward City Code 6.40.120(5)allowing
for the purchase of specialized products and professional service which can only be furnished by a
single dealer, or which have a uniform published price, staff feels it is in the City's best interest to
sole source the to CMI in Anchorage as they are the closest authorized Volvo maintenance shop.
INTENT:
The intent is to repair the 2001 G740 Volvo Road Grader to a dependable condition. The work will
be performed by certified Volvo mechanic's at CMI located in Anchorage,Alaska. This will extend
the life of this 2001 Road Grader by 4-5 years in leu of replacement, new grader value near
$450,000.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan: 1.3.3 Public Facilities and Services
1' 2.2.4 fundingfor repair of infrastructure. X
2. Strategic Plan: Pg. 4 Transportation Facilities X
3. Other: X
FISCAL NOTE:
The City has received an estimate of$62,190.41 for repair of the Volvo road grader from CMI.
Funding for the repair in the amount not to exceed$71,518.98(estimate plus 15%contingency)is to
be appropriated from Motor Pool reserves account No. 03000-0000-3400,to the Motor Pool Repair
and Maintenance Account No. 03000-1310-7216. The need for these repairs was unforeseen and
therefore funding was not included in the budget. Q
Approved by Finance Department:
ATTORNEY REVIEW: Yes No Not Applicable X
RECOMMENDATION:
City Council approve Resolution 2021-076, authorizing the expenditure of $62,190.41for the
repairs of the 2001 G740 Volvo Road Grader by, CMI.