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HomeMy WebLinkAboutRES2026-050 Dozer RepairSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2026-050 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT THE QUOTE FROM NC MACHINERY FOR THE REPAIR OF THE CATERPILLAR D6 DOZER FOLLOWING OCEAN IMMERSION IN THE AMOUNT OF $205,021.29 AND APPROPRIATING FUNDS WHEREAS, in the summer of 2025, while working on the flood waters, the city's Caterpillar D6 dozer dropped in the ocean/salt water during operations. It was mostly submerged and had to be pulled back out with other large equipment; and WHEREAS, the dozer was successfully recovered and underwent initial inspections by qualified mechanics; and WHEREAS, the City has successfully secured a settlement of $326,000 from our insurance regarding the total loss of the dozer. That payment was received in 2026 and properly credited to the Motor Pool Fund for the upcoming repair of replacement; and WHEREAS the estimated cost to replace & repair (including engine transmission replacement, hydraulic system flushing, replacing electrical wiring, and contamination removal) is $205,021.29, which is significantly lower than the cost of a new or comparable used replacement machine; and WHEREAS, NC Machinery is the sole authorized Caterpillar dealer and certified service provider for Caterpillar heavy equipment in the State of Alaska, possessing the exclusive expertise necessary for specialized repairs to the dozer. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA: Section 1. The City Council hereby authorizes the City Manager to execute an agreement with NC Machinery in an amount not to exceed $205,021.29 and appropriating funds. Section 2. The City Council hereby appropriates the amount of $205,021.29 from the Motor Pool Fund 03000-01310-8103 for the purpose of such major repairs to the Dozer. Section 3. This resolution shall take effect immediately upon its adoption. APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, THIS 11TH DAY OF MAY 2026. Sue McClure, Mayor CITY OF SEWARD, ALASKA RESOLUTION 2026-050 Page 2 of 2 AYES: Warner, Barnwell, Crites, Draper, Calhoon, McClure NOES: None ABSENT: Osenga ABSTAIN: None ATTEST: s�v Kris Peck City Clerk City Council Agenda Statement Meeting Date: May 11, 2026 To: City Council Through: Kat Sorensen, City Manager From: Doug Schoessler, Public Works Director Subject: Resolution 2026-050: Authorizing the City Manager to Accept the Quote from NC Machinery for the Repair of the Caterpillar D6 Dozer Following Ocean Immersion in the Amount of $205,021.29 and Appropriating Funds Background and justification: Last fall the City's Public Works Crew had an incident at the Lowell Creek outfall area while working the flood waters. The City's Caterpillar D-6 dozer was mostly submerged in saltwater. This resulted in an insurance claim for which a settlement of $326,000 was received. These funds are being held in the Motor Pool account for the repair or replacement of the D-6 Dozer. Repairs to the dozer require certified, OEM -authorized personnel, and NC Machinery is the exclusive vendor in Alaska capable of providing such specialized services. The Public Works Director and Shop Foreman determined that NC Machinery's proposal of $205,021.29 for repairing the salvaged unit is more cost-effective than replacing it. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Total amount of funds listed in this legislation: This legislation (✓): Creates revenue in the amount of: Creates expenditure in the amount of: Creates a savings in the amount of: Has no fiscal impact Funds are (✓): Budgeted Line item(s): x X Not budgeted Not applicable $ 205,021.29 $ 205,021.29 Affected Fund (V): General Boat Harbor Motor Pool X Net Position as of 4/30/26 Yes SMIC Parking Other Electric Water MOTOR POOL Attorney Signature: Not applicable Comments: Wastewater Healthcare Note: amounts are unaudited $ 1,413,978 Finance Director Signature: Administration Recommendation X Adopt Resolution Other: