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Home My WebLink AboutRes2020-037 Sponsored by: Meszaros CITY OF SEWARD,ALASKA RESOLUTION 2020-037 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE A VOLVO ECR58D EXCAVATOR FOR THE ELECTRIC UTILITY DEPARTMENT FROM CONSTRUCTION MACHINERY INDUSTRIAL USING THE STATE OF ALASKA'S PROCUREMENT PROCESS FOR COMPETITIVE BIDDING IN THE AMOUNT OF $73,735, AND APPROPRIATING FUNDS WHEREAS, the electric utility crew regularly uses this piece of equipment to do construction work and is relied upon heavily by Electric Department crews to perform construction work in a timely and efficient manner; and WHEREAS, if this piece of machinery is unavailable due to repairs, then the costs for customer jobs would increase due to lower efficiencies, or construction will be postponed until proper equipment is available; and WHEREAS, the costs for maintaining the current equipment are becoming higher than the cost for purchasing a new piece of equipment; and WHEREAS, the Electric Department utilized the State of Alaska's competitive procurement requirements through Sourcewell to select the preferred vendor, Construction Machinery Industrial (CMI)for this type of equipment; and WHEREAS,using this method of procurement is saving the City approximately$41,606 off the purchase price; and WHEREAS, the Electric Department annually contributes funds to the motor pool fund for the eventual replacement of equipment. 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 purchase a Volvo ECR58D Excavator from Construction Machinery Industrial in the amount of$73,735. Section 2. Funding in the amount of$73,735 is hereby appropriated from the Motor Pool Fund reserves account 03000-0000-3400 to capital equipment account no. 03000-3000-8103. Section 3. This purchase follows section SCC 6.01.010.1: "Maximize the purchasing value of public funds in the procurement of goods and services for the City" and SCC § CITY OF SEWARD,ALASKA RESOLUTION 2020-037 6.10.120(b) of Seward City Code for purchasing: "The City may utilize competitive bids obtained by other governmental units". Section 4.This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 26th day of May, 2020. THE T 0 SEWARD, ALASKA 'sty Ter ,May AYES: Osenga, Seese, Baclaan, Crites, McClure,Terry NOES: None ��--- ABSENT: Butts ABSTAIN: None ATTEST: Brenda J. Ballou City Clerk (City Se.11,03 'n; •,„ '4' 0.. 1.j % o ' • ; SEAL I • _ . 3 ,., OF ASP,:•`• Agenda Statement Meeting Date: May 26, 2020 • To: City Council Through: City Manager, Scott Meszarosnt From: John Foutz, Electric Department Director Agenda Item: Authorize the City Manager to purchase a Volvo ECR58D Excavator from Construction Machinery Industrial (CMI) using the State of Alaska's procurement process for competitive bidding in the amount of$73,735 and appropriating funds. BACKGROUND & JUSTIFICATION: The Volvo ECR58D Excavator, or commonly referred to as a mini excavator, is the primary equipment used by the electric department construction crews to perform digging and trenching for new services, repair and replacement of underground services and clearing of smaller trees and shrubs. The Electric Department had to use some alternatives during the last construction season to complete projects in a timely, cost efficient manner. If this equipment is unavailable for an extended period of time due to repairs, then the electric department may not be able to complete as many job orders during the construction season. The repairs and maintenance on the current piece of equipment are starting to outweigh the replacement costs. By using the state's procurement procedure and Construction Machinery Industrial (CMI), the chosen vendor by the state for this type of equipment, the City will save around $41,606 off the purchase price. The Seward City Code allows the City to use other governmental procurement procedures. As a response to the COVID-19 state recommendations and mandates, the Electric Department will utilize both machines this construction season as a preventable measure to reduce potential virus exposure to employees. INTENT: To authorize the city manager to purchase a mini excavator to perform construction services through the Electric Department CONSISTENCY CHECKLIST: Yes No NIA 1. Comprehensive Plan Comprehensive Plan X 2 Strategic Plan:The mission of the City of Seward government is to X provide quality leadership and economic wellbeing of its citizens 3. 1 Other (list): X 67 FISCAL NOTE: Funding for this purchase will come from the Motor Pool Fund reserves. The Electric Enterprise Fund annually contributes to the Motor Pool Fund to fund future replacement of vehicles and equipment. Approved by Finance Department: ATTORNEY REVIEW: Yes No RECOMMENDATION: For council to approve Resolution 2020-037 so that the city manager is authorized to purchase ... ............... ........ mini excavator from CMI as outlined in the attached quote in the amount of $73,735.00 and appropriating funds. 68 PPPPPW Quote Valid for 90 days Sourcewe.11Contract: 032119- Date: VCE Buying _City of Seward Contractor: ;Construction Machinery Industrial,LLC Agency: Contact ;James Unrein/Patrick Gillis Prepared _Kirk Currey Person: = By: Phone: 907.224.4072 Phone: 907.563.3822 Email: pgillis@cityofseward.net Email r: =k.currey@cmiak.com Sourcewell Product Code IF General Description oleo ECR58E Compact Excavator of Product: A.Catalog/Price Sheet Items being purchased-Itemize Below-Attach Additional Sheet If Necessary Quan Description Unit Pr Total 1 ;Volvo ECR58E Compact Excavator $73,645= $73,645 See next page for machine specs Subtotal A: $73,645 B.Sourced and/or UnSourced Contracted Items Quan Description Unit Pr Total 1 No other options or additions requested at this time. $0 1 _ _ $0 1 _ _ $0 1 _ _ $0 1 _ _ $0 1 _ _ $0 1 _ $0 Subtotal B:11 $0 C.Trade-Ins/Special Discounts/Other Allowances/Freight/Installation/Miscellaneous Charges Freight $740 PDI $500 Additional LED Lights and Safety Net Window Cover $3,350 Additional Dealer Discount for Hours/2019 Model -$4,500 $0 Subtotal C: $90 Delivery Date:= 10-14 days A Total Purchase Price (A2 C): $73,735 69 Volvo ECR58D Excavator PROPOSAL -T� Page 1 of 2 Proposal#: 16314 Canshvction Machinery Industrial,LLC • Date: 5/11/2020 5400 Homer Drive Issued by: Kirk Currey Anchorage,Alaska 99518 Cell#: (907)244-7154 Ph: (907)563-3822 Fax:(907)563-1381 email k.currey a cmiak.com To: City of Seward Attention: James Unrein 1300 4th Avenue Off 9: 907.224.4352 Seward,AK 99664 Cell#: (907)575-2434 email: junrein&cityofseward.net We at Construction Machinery are pleased to quote the following equipment for your review: Iternh Qty Description I Price Ea. Extended Price 001 1 One(1)ea. 2019 Volvo ECR58D Crawler Excavator 002 Unit# VE0301 Serial# VCE00C581`00210677 003 Make Volvo Model ECR58D 004 Year 2019 Hours 436 005 1 Outright Cash Purchase Price FOB City of Seward Yard................. $ 73,735.00 $ 73,735.00 006 Options included shown on Page 2 007 1 Agreed Additional Options from Page 2.ADD................................. $ - $ - 008 Total Due $ 73,735.00 009 Standard features: 010 Volvo D2.6H Tier 4F 47 HP Diesel 4 cyl.2.62 liter Diesel Oil Operating capacity Bucket digging force 8,950#/Arm Force 5,060# 012 Operating Weight 13,126#plus coupler and thumb-app 14,000# 013 3 Variable-displacement axial piston pumps 2 x19 gpm and 1 x 15 gpm 014 Boom Swing Left-60'Right 70' 015 016 017 018 019 020 Purchase Terms:City of Seward PO.And/Or agreement with Chee Kong Toh. 021 Prices are valid for 30 days 022 Any applicable taxes not included. 023 Availability:In ANC yard.Currently scheduled to go on rent 5/18,subject to prior sale&prior dispatch. 024 Warranty: Added- 1 year 1500 EPG-ESPP Premier Warranty Full Machine. 025 Product Support and Warranty:All service and stock parts are FOB nearest CMI Branch. 026 And do not include Travel,Room and Board. WARRANTIES:Buyer acknowledges that it has examined the merchandise as fully as it desires and that the merchandise is of the size,design,type,and manufacture selected by Buyer.IF THE MERCHANDISE SOLD IS NEW,THE PARTIES AGREE THAT IMPLIED WARRANTIES OF SUCH MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AS WELL AS ALL OTHER WARRANTIES,EXPRESS OR IMPLIED,ARE EXCLUDED FROM THIS TRANSACTION AND SHALL NOT APPLY TO THE MERCHANDISE SOLD.However,for new macbwdise,Seller shall make available to Buyer,to the extent provided by the manufacturer of the merchandise,solely on behalf of the manufacturer,any warranty provided by the manufacturer,which shall be Buyer's sole and exclusive remedy.For used merchandise,Buyer is purchasing the merchandise AS and WITH ALL FAULTS,unless Seller has explicitly written in this document that there is an express warranty for a limited period oftime for the replacement ofparts that Seller,in it's sole judgment, determines to be defective.If seller has explicitly written such an express warranty in this document,the replacement of parts found to be defective during the warranty period shall be Buyer's sole and exclusive remedy. EXCEPT FOR SUCH AN EXPRESS WARRANTY THAT SELLER HAS EXPLICITLY WRITTEN IN THIS DOCUMENT,THERE IS NO WARRANTY OF ANY KIND FOR USED MERCHANDISE,EXPRESS OR IMPLIED AND IN PARTICULAR,THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE ARE EXCLUDED FROM THIS TRANSACTION AND SHALL NOT APPLY TO THE MERCHANDISE SOLD.AS TO EITHER NEW OR USED MERCHANDISE SELLER SHALL IN NO EVENT BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES,WHETHER FOR PERSONAL INJURY,DEATH,DAMAGE OR DESTRUACTION OF PROPERTY,LOST EARNINGS,LOST PROFITS,ECONOMIC LOSSES,OR OTHER INCIDENTAL OR CONSEQUENTIAL LOSSES. Construction Machinery Industrial,LLC Accepted by: By: Kirk Currey Title: Title: Equipment Sales/Rentals Date City of Seward 70 Volvo ECR58D Excavator PROPOSAL Proposal#: 16314 Page 2 of 2 We at Construction Machinery are pleased to quote the following equipment for your review: Itemh Qty Description I Price each Extended Price 027 All Standard features as inspected/listed plus the following included options.: 028 Volvo Options included, All Standard Features plus the following options 029 Volvo D2.6H Tier 4F 47 HP Diesel 4 cyl.2.62 liter Diesel 030 16 In.Crawler Rubber Pad("combo'pad) w/Angle Blade 031 Fabric Suspension Seat w/heat 032 HD Boom with Arm Cylinder and Plumbing 033 6 4" Arm with Bucket Cylinder and Linkage 034 Manuals-Complete Set of Manuals 035 036 Volvo Hydraulic Packaze 037 HKX Plumbing Kit w/Auxiliary High Flow Hydraulic Lines 038 Single or Double Direction 039 RH proportional single slider control 040 041 Attachments 042 Volvo Hydraulic Pin Grabber Quick Coupler 043 Volvo Hydraulic Thumb-(Quick Coupler Length) 044 Volvo 59"x.289 yd3 Clean-up Bucket w/BOCE BH5616 045 Volvo 30"x.245 yd3 HD GP Dig Bucket w/Teeth 046 Volvo 18"x.128 yd3 HD GP Dig Bucket w/Teeth 047 Dry Pin Kit(2)for all Buckets 048 049 Dealer Added and included in the Sourcewell(CPS) 050 Work light basic LED 051 Flashing beacon LED 052 Extra work light,Cab rear,L 053 Extra work light,boom,LH,LED 054 Safety net,front window 055 056 Options:Not included.Add to the Purchase Price 057 0 Volvo 24"x.186 yd3 HD GP Dig Bucket $1,590.00 $ - 058 0 Volvo 5 1"x.249 yd3 smooth-edge tilt ditching bucket $1,845.00 $ - 058 0 Power Tilt Bucket 36" Dig Bucket with teeth POR 059 0 Power Tilt Bucket 42" STE Bucket with teeth POR 060 0 Helac Power tilt PO Top w/pins/Manual Pin Grabber Bottom POR 061 0 Tilt Rotator POR 062 Extended Warranty: 063 0 3 year 2000 Hour EPG-ESPP Premier warranty $2,716.00 $ - 064 0 5 year 4000 hour AM Trust Premier warranty $4,670.00 $ - 066 Total of options selected $ - Construction Machinery Industrial,LLC Accepted by: By: Kirk Currey Title: Title: Equipment Sales/Rentals Date City of Seward 71