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HomeMy WebLinkAboutResolution No. 2021-36KENAI CITY OF KENAI RESOLUTION NO. 2021 - 36 Sponsored by: Administration A RESOLUTION OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE PURCHASE OF A NEW GRADER FOR THE STREETS DEPARTMENT THROUGH UTILIZATION OF THE STATE OF ALASKA PROCUREMENT CONTRACT AND ISSUANCE OF A PURCHASE ORDER. WHEREAS, the State of Alaska competitively bids a variety of equipment every year and KMC 1.15.070 — Innovative Procurements and Other Exceptions, allow the City to purchase equipment through the State of Alaska; and, WHEREAS, the State of Alaska Contract Award CA2255-21 to NC Machinery for a Caterpillar Motor Grader meets the needs of the City of Kenai's Street Department for the replacement of aging existing equipment; and, WHEREAS, the Public Works Department intends to surplus two existing motor graders to contribute to the purchase of one new CAT 160 Motor Grader, and the equipment replacement fund has sufficient funds to support this purchase; and, WHEREAS, purchasing the equipment in this way saves time, staff resources, and results in a competitive purchase price; and, WHEREAS, this equipment will allow for the Streets Department to continue to provide reliable service to our citizens for both clearing of roadways in the winter months as well grading of gravel roadways during the summer; and WHEREAS, the purchase of this equipment through the State Contract is in the best interest of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the Kenai City Council authorizes utilization of the State of Alaska procurement contract for the purchasing of a new CAT 160 motor grader with accessories for the Streets Department with funds provided by the equipment replacement fund. Section 2. That the Kenai City Council authorizes the City Manager to issue a Purchase Order to NC Machinery in the amount up to $340,000. Section 3. That this Resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of June, 2021. Resolution No. 2021-36 Page 2 of 2 ATTEST: Jj�j Heinz, MMC, City Clerk Approved by Finance: / ' 4�-- L. YEN ;, U - m,�q T KENAI City of Kenai 1210 PiJalgo Ave, Kenai, AK 99611-77941907.283.7535 1 www.kenaixity MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin, Public Works Director DATE: May 28, 2021 SUBJECT: Resolution 2021-36 The purpose of this memo is to request Council's Support of Resolution 2021-36 for the replacement purchase of a new roadway grader for the Streets Department utilizing the State of Alaska Fleet Purchasing Procurement Contract. This purchase will replace two 20+ year old pieces of equipment which will be surplus auctioned upon receipt of the new equipment. The surplus funds will be returned to the equipment replacement plan fund. Council should be aware the base model with state bid options and freight is approximately $290K. Staff is reviewing additional available options from the manufacturer that are specific to a municipal application. These additional options shall not exceed $50K for a total anticipated not to exceed grader purchase of $340K. These options shall be presented to the City Manager for approval in the form of a sole source. Installation of these items after purchase of the base equipment would create additional costs and void warranties associated with the equipment. Items consist of snow gate and wing, moldboard extension as examples. Purchase of this equipment will allow the Streets Department to continue to provide the level of service our citizens have come to expect. Council may recall the department has been reduced from a staff of six down to five, which is one of the reasons why two graders are being replaced with one. It is also the reason why it is imperative the one new unit is capable of meeting the demands and needs of the department. The purchase of this equipment is in the best interest of the City. Council's support is respectfully requested. The City of Kenai I www.kenai.city