HomeMy WebLinkAboutAM 2022-008 Purchase New LoaderCity Council Agenda Statement
Action Memorandum 2022-008
Meeting Date: September 12, 2022
To: City Council
Through: Janette Bower, City Manager
From: Doug Schoessler, Public Works Director
Agenda Item: Action Memorandum 2022-008: Authorize the City Manager to Purchase a
New Volvo L90H Wheel Loader from Construction Machinery Industrial, LLC
(CMI) to Replace a 2000 Volvo L70D Loader in the Amount of $219,440 Plus
10% Contingency for a Total Amount not to Exceed $241,384 Utilizing RFP
Contract #032119-VCE
Background and justification:
The Public Works Department's 2000 Volvo L70D Loader is past the anticipated useful life and
continues to have multiple yearly break downs and mechanical issues. To continue providing quality
service to the Seward community, the Public Works Department needs to replace the 22-year-old
loader with a new loader. The age of the unit, yearly costly repairs, and mechanical issues make the
purchase of new loader necessary to service Seward's road maintenance needs.
The purchase of the loader is consistent with the City of Seward's policy of the Standardization of
Equipment. The City of Seward is a member of Sourcewell (National Joint Power Alliance) for
government purchasing. Seward City Code 6.10.120(B) allows competitive procurement purchases
which utilize competitive bids obtained by other governmental units, and the Public Works
Department will purchase this vehicle through Construction Machinery Industrial LLC (CMI) utilizing
Sourcewell's joint purchasing contract 3032119-VCE.
The 2022 budget year includes $255,000 in the Public Works Capital Equipment Budget to replace
the old loader with a new loader. The total purchase price is now $219,440. The Department
currently has Volvo loaders, and this standardization of equipment saves money and improves
maintenance efficiencies.
Requested motion: Authorize the City Manager to Purchase a New Volvo L90H Wheel Loader from
Construction Machinery Industrial, LLC (CMI) to Replace a 2000 Volvo L70D Loader in the Amount of
$219,440 Plus 10% Contingency for a Total Amount Not to Exceed $241,384 Utilizing RFP Contract
#032119-VCE
Note: the action memorandum format was used because the purchase is budgeted.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 3.4 Transportation -providing safe and efficient transportation
Strategic Plan: 5.4.2 Transportation infrastructure
Other:
Certification of Funds
Total amount of funds listed in this legislation: $ 219,440 + 10% contingency=$241,384
This legislation (✓):
Creates revenue in the amount of:
x Creates expenditure in amount of:
Creates a savings in the amount of:
Has no fiscal impact
Funds are (✓):
X Budgeted Line item(s):
Not budgeted
Not applicable
$ 24
2022 Operating Budget -Motor Pool
Unassigned Fund Balance and Available Unrestricted Cash Balance Information
Fund (✓):
General SMIC
Boat Harbor Parking
X Motor Pool Other
Electric Wastewater
Water F1 Healthcare
Unassigned Fund Balance*: $ 5,405,940.93 *unaudited numbers
Available Unrestricted Cash Balance*: $ 7,998,191.37
Finance Signature:
Attorney Review
RxYes Attorney Signature:
Not applicable Comments:
Administration Recommendation
xeAdopt AM
Other:
DISPOSITION
Approved by City Council on September 12, 2022.