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HomeMy WebLinkAboutRes2011-019 Sponsored by: Oates Postponed until April 25, 2011 how CITY OF SEWARD, ALASKA RESOLUTION 2011 -019 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE PURCHASE OF A BACKHOE FOR AN AMOUNT NOT TO EXCEED $90,000 WHEREAS, funds in the amount of $200,000 have been allocated this year from the Motor Pool Fund for the replacement purchase of a bulldozer; and WHEREAS, the electric department has identified a more critical need in the 580SK Case backhoe which reflects a more prudent use of limited funds to replace equipment too expensive to repair; and WHEREAS, the backhoe is a more cost effective replacement of equipment for use by the electric department on a day -to -day basis; and WHEREAS, the backhoe is used by the electric crew regularly throughout the summer for construction of new services and repair of existing underground services; and WHEREAS, the initial estimate for repairs to the current backhoe to adequately prepare it for construction this summer (April 2011) is $85,237.34; and WHEREAS, the backhoe is the only piece of equipment the electric department has to dig into the ground for service jobs and emergency situations; and WHEREAS, under city code Title 6.10.310.A which states, "a department head may recommend an alternative procurement procedure to the city manager if such procedure will best serve the needs of the city and accomplish the objectives of this title." NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The electric department is authorized to purchase a backhoe for less than $90,000. Section 2. The electric department will attempt to acquire a used comparable piece of equipment. Section 3. The funds will be allocated from the Motor Pool Purchase account number 102- 1020 -5930. CITY OF SEWARD, ALASKA RESOLUTION 2011 -019 smil Section 4. This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 25 day of April, 2011. THE CITY O WARD, ALASKA Willard E. Dunham, Mayor AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Dunham iial NOES: None ABSENT: Smith ABSTAIN: None ATTEST: Johanna Kinney City Clerk (City Seal) Agenda Statement Meeting Date: March 29, 2011 r 4 O SF Through: Phillip Oates, City Manager t ; 14 From: John Foutz, Electric Utility Manager 11:74-s0 P Agenda Item: Purchase a backhoe for the electric department through the Motor Pool Fund. BACKGROUND & JUSTIFICATION: The Electric Department's 580SK Case backhoe (vehicle number 512) is an essential piece of equipment. The backhoe was purchased by the city in 1991 and is the primary piece of equipment during the construction season for digging purposes. Following the 2010 construction season the electric department pursued repairing the backhoe; the initial quote for repairs was $85,237.34 with $73,837.34 allocated to parts. Vehicle 512 has been rebuilt once before and replacement or extensive overhaul has become necessary. We are also investigating the possibility of purchasing a used equivalent piece of equipment, using the current backhoe as a trade -in or selling the backhoe to help alleviate some of the financial burden of this purchase. Three quotes will be requested for both new and used equipment. By comparison and slated to be replaced this year is bulldozer (vehicle number 515). It is currently parked at Lawing Substation and is used primarily for snow removal, between twenty and fifty hours annually. The Electric Department would like to swap this bulldozer for replacement with the requested backhoe and replace the bulldozer in 2012. By comparison, the requested backhoe will be used at least 1000 hours.s; justifying bumping up replacement or overhaul on the Electric department's schedule. INTENT: Authorize the purchase of a new or used backhoe to replace the 580SK Case backhoe in the electric department. FISCAL NOTE: Up to $200,000 has been allocated to account 102 - 1020 -5930 Motor Pool Purchase. This amount is budgeted for this year to replace vehicle number 515. Approved by Finance Department: v ATTORNEY REVIEW: Yes No X c(JJ RECOMMENDATION: Pass resolution 2011-0 iq , to purchase a new or used backhoe to replace vehicle number 512 for an amount not to exceed $200,000.