HomeMy WebLinkAboutRES2024-019 John Deere Road GraderSponsored by: Sorensen
I CITY OF SEWARD, ALASKA
RESOLUTION 2024-019
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE A NEW
2024 JOHN DEERE 772G ROAD GRADER FOR A TOTAL AMOUNT OF
$499,498.00 PLUS 10% CONTINGENCY UTILIZING THE LOWEST BID
PRICING FROM AIRPORT EQUIPMENT RENTAL AND SOURCEWELL
CONTRACT # AND APPROPRIATING FUNDS.
WHEREAS, The Public Works Department’s 2001 Volvo 740A Motor Grader - Unit# 113,
is 22 years old and past the anticipated useful life. The age of the unit, continuing costly repairs,
declining parts availability, and drive gear issues make the purchase of new grader necessary to
service Seward’s road maintenance needs into the future.
WHEREAS, the purchase of the John Deere grader is consistent with the City of Seward’s
policy of the Standardization of Equipment; and
WHEREAS, 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 is purchasing these vehicles utilizing Sourcewell contract #; andI
WHEREAS, Sourcewell has issued requests for proposals for various equipment; to secure
the lowest bid contract.
WHEREAS, the lowest bidder for the road grader is Airport Equipment Rental in the
amount of $486,338 using the Sourcewell member pricing.
WHEREAS, the funding of the purchase will come from budgeted reserves in the Motor
Pool Eund following the capital equipment plans for 2021-2025.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Manager is authorized to purchase the 2024 John Deere 772G road
grader from Airport Equipment Rental for a total price of $499,498.00 with a 10% contingency.
Section 2. Eunding the amount of $499,498.00 is hereby appropriated from Motor Pool
Eund Reserve Account number 03000-0000-3400 to the capital equipment account no. 03000-1310-
8103.
Section 3. The Seward City Council hereby finds that it is in the public interest to purchase
this equipment through airport Equipment Rental utilizing the competitive procurement REP
contracts by Sourcewell.I
CITY OF SEWARD, ALASKA
RESOLUTION 2024-019
Page 2 of 2 I
Section 4. This resolution shall take effect immediately upon its adoption.
thPASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 11
day of March 2024.
THE CITY OF SEWARD, ALASKA
CJLu»^
Sue McClure, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Osenga, Calhoon, Wells, Barnwell, Finch, McClure
None
Crites
None
ATTEST:
IKris Peck
City Clerk
(City Seal)
V
•I SEAL }•
\ n
I
City Council Agenda Statement
Meeting Date: March 11, 2024
To: City Council
Through: Kat Sorensen, City Manager
From: Doug Schoessler, Public Works Director
Subject: Resolution 2024-019; Authorizing The City Manager To Purchase A
New 2024 John Deere 772G Road Grader From Airport Equipment
Rental For A Total Of $499,498.00 Plus 10% Contingency Utilizing The
Sourcewell Contract And Appropriating Funds
Background and justification:
The Public Works Department’s 2001 Volvo 740A Motor Grader - Unit #113, is 22 years old
and past the anticipated useful life. The age of the unit, continuing costly repairs, declining parts
availability, and drive gear issues make the purchase of new grader necessary to service
Seward’s road maintenance needs into the future.
The 2023-2024 budget year included with the Public Works Capital Equipment Budget per
scheduled fleet replacement/management plan to purchase a new Road Grader in order to
provide reliable road maintenance year-round. The price from Airport Equipment Rental
utilizing the discount pricing from Sourcewell is $499,498 (the suggested manufacturers list
price for the John Deere 740A Grader is $713,986). We currently have a 2018 John Deere 672GP
Grader, and this standardization of equipment saves money and improves winter maintenance
efficiencies.
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
be purchasing this equipment utilizing the Sourcewell contract price with Airport Equipment
Rental for the best value for the City of Seward.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: Chapter 2.2.3 Community Appearance
Strategic Plan: Page 18 Maintain Streets
Other:
Certification of Funds
Total amount of funds listed in this legislation: $ 499,498. Plus 10% Contingency
This legislation ():
Creates revenue in the amount of: $
Creates expenditure in amount of: $ 499,498 Plus 10% Contingency
Creates a savings in the amount of: $
Has no fiscal impact
Funds are ():
Budgeted Line item(s):
Not budgeted
Not applicable
Fund Balance Information
Affected Fund ():03000-1310-8103
General SMIC Electric Wastewater
Boat Harbor Parking Water Healthcare
Motor Pool Other
Note: amounts are unaudited
Available Fund Balance/ Net Position $ $1,137,563.77
Finance Director Signature:
Attorney Review
Yes Attorney Signature:
Not applicable Comments:
Administration Recommendation
Adopt Resolution
Other: