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Sponsored by: Hunt <br /> CITY OF SEWARD,ALASKA <br /> RESOLUTION 2016-005 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br /> ALASKA, AUTHORIZING THE PURCHASE OF A USED 2014 HITACHI <br /> ZC50U5 COMPACT EXCAVATOR FROM CONSTRUCTION MACHINERY <br /> INDUSTRIAL,LLC FOR AN AMOUNT NOT TO EXCEED$56,572.50,AND <br /> APPROPRIATING FUNDS <br /> WHEREAS, since 2008, the Public Works Department has annually leased a compact <br /> excavator to assist in daily duties from April through October,and the Harbor Enterprise Fund also <br /> leases an excavator routinely to accomplish their work during the same months; and <br /> WHEREAS,the City pays approximately$16,000 per year in lease fees for equipment for <br /> the Public Works Department's leased excavator; and <br /> WHEREAS,at the current lease rate,the City would pay an equivalent of the purchase price <br /> of a compact excavator every 4.5 years; and <br /> WHEREAS,the leased equipment will be available to all City departments to use,with each <br /> department paying the cost of the hours the machine is in use,as equipment rental fees to the Motor <br /> Pool Internal Service Fund; and <br /> WHEREAS, there are approximately 400 hours of use on the 2014 Hitachi Compact <br /> Excavator currently being leased,with an estimated 10+/-years of remaining useful life before any <br /> major overhauls will be necessary; and <br /> WHEREAS,having had possession of this piece of equipment since April 2015,the City's <br /> shop mechanics have inspected and operated the unit and find it to be fully functional and sound;and <br /> WHEREAS, Seward City Code 6.10.125 excludes from competitive procurement the <br /> purchase of used equipment, and when combined with the discount offered to the City for the <br /> purchase of used equipment currently being leased, the cost is estimated to be much lower than <br /> comparable used equipment. <br /> NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY <br /> OF SEWARD,ALASKA that: <br /> Section 1. The City Manager is hereby authorized to issue a Purchase Order to Construction <br /> Machinery Industrial, LLC for an amount not to exceed $56,572.50 for the purchase of the 2014 <br /> Hitachi ZC50U5 Compact Excavator. <br /> Section 2.Funding for the purchase of this equipment will utilize Motor Pool Fund reserves, <br />