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HomeMy WebLinkAboutOrdinance No. 3455-2025KENAI CITY OF KENAI ORDINANCE NO. 3465-2025 Sponsored by: Administration AN ORDINANCE AUTHORIZING THE PURCHASE OF A USED VENTRAC TRACTOR AND ATTACHMENTS FROM KNC GOLF, INC., THAT DEVIATES FROM PROCUREMENT PROCEDURES AUTHORIZED BY KENAI MUNICIPAL CODE CHAPTER 7.15 PURCHASES AND SALES. WHEREAS, the Parks and Recreation Department planned to purchase two tractors and attachments in fiscal years 2025 and 2026 using standard procurement procedures in KMC Chapter 7.15-Purchases and Sales; and, WHEREAS, an unexpected opportunity with change in the Kenai Golf Course management has resulted in opportunity to purchase one tractor and attachments from KNC Golf, Inc., at a value to the City that cannot otherwise be obtained through standard procurement methods provided in KMC Chapter 7.15; and, WHEREAS, cost savings, value, efficiency, and enhanced functionality by purchasing the tractor and attachments directly from KNC Golf, Inc, justify not following the competitive procurement processes in City Code in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the procurement provisions required in KMC Chapter 7.15 are hereby waived in the best interest of the City for cost savings, value, efficiency and enhanced functionality for the purpose of purchasing a Ventrac tractor and attachments from KNC Golf, Inc. for $45,000. Section 2. That the City Manager is authorized to execute any documents necessary to complete the purchase described in Section 1 above. Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5T" DAY OF MARCH, 2025. ATTEST Brian Gabriel Sr., Mayor New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. -2025 M %,m1-1 Ar Mic ele Sari M C, City Clerk Approved by Finance:i Introduced: February 19, 2025 Enacted: March 5, 2025 Effective: April 4, 2025 New Text Underlined; [DELETED TEXT BRACKETED] 00' K F N I City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1 907.283.7535 1 www.kenai.city MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Tyler Best, Parks and Recreation Director DATE: February 12, 2025 SUBJECT: Ordinance 3466-2025 - Authorizing the Purchase of a Used Ventrac Tractor and Attachments from KNC Golf, Inc., that Deviates from Procurement Procedures Authorized by Kenai Municipal Code Chapter 7.16 Purchases and Sales. In the FY25 budget, there is a capital project for the Parks and Recreation Department (Department) to purchase a tractor and several attachments. Additionally, the approved capital improvement plan for FY26 includes a request to fund the purchase of a second tractor and attachments. These two tractors are intended to replace aging mowers and provide greater versatility and efficiency for the Department. Recently, the new management of the Kenai Golf Course presented the City with a unique opportunity. KNC Golf, Inc., owns a tractor similar to the one the Department was planning to purchase, along with a large number of attachments. KNC Golf, Inc., has determined the tractor does not meet its needs and is offering it for sale along with all the attachments. Some of the attachments align with the Department's original purchase plan, while others were not initially planned to be purchased but would significantly enhance the Department's capabilities. The additional attachments would replace other aging small equipment used by the Department. KNC Golf, Inc., is offering the tractor and its attachments to the City at an exceptional value that far exceeds the City's spending power in the new equipment market. The tractor has very low hours, and some attachments have never been used. While it is understood the used tractor does not have a warranty, the City Shop is familiar with the equipment and can provide needed maintenance and repair services within reason. The value of the potential purchase and alignment with existing plans for the purchase of similar equipment is significant enough for Administration to take the rare step of recommending Council approve this purchase outside of standard purchasing procedures provided for in the City's purchasing code. This opportunity provides substantial benefits in four key areas: 1. Value: The value new of the tractor and attachments offered is $103,640 which is offered to the City for $45,000. 2. Future Cost Efficiency: The new attachments the City would be acquiring in addition to what it originally intended to acquire will replace other aging equipment that the Department needs replaced in the next five years. 3. Enhanced Functionality: The purchase increases the number of available attachments, improving operational capabilities and versatility within the Department. 4. Immediate Budget Impact: Purchasing the equipment will save money compared to the original purchase plan for FY25 and FY26 and provide an increased number of attachments. Recommendation: Based on these benefits, the Administration recommends enactment of a non -code ordinance authorizing the purchase of the Ventrac Tractor from KNC Golf, Inc. by direct negotiation. The purchase will address immediate operational needs while delivering long-term financial and functional benefits for the City. Below are tables representing the values of all the tractors and equipment. Table 1.A represents the current purchase plan for new equipment of the Parks Department from the FY26 and FY26 Capital Improvement Plans. 1.A Total FY26 Budget and Equipment FY26 Budget FY26 Request FY26 Request Ventrac Tractor $33,700 $33,700 $ 67,400 Contour Mower 10,000 - 10,000 Attachment Broom 5,075 - 5,075 Ball Park Groomer 5,975 5,975 Wide Area mower 8,400 - 8,400 Power Bucket - 3,190 3,190 48" Snow Blower - 6,810 6,810 Tiller - 4,310 4,310 Rough Cut Mower - 5,625 5,625 Dual wheel kit 1,795 1,795 3,590 Trailer - 8,000 8.000 Total $64,946 $63,430 $128,376 Page 2 of 3 The City of Kenai I wwwkenai.cit Table 1. B represents a revised purchase plan which includes purchase of the unit and attachments from KNC Golf, Inc. 1.13 Equipment FY26 Budget Ventrac Tractor & Attachments $45,000 Attachment Broom 5,075 Ball Park Groomer 5,975 Wide Area mower 8,400 Dual Wheel Kit 1,795 48" Snow Blower - Tiller - Rough Cut Mower - Trailer - Total $66,246 Total FY25 Budget and FY26 Request FY26 Request $33,700 $78,700 - 5,075 - 5,975 - 8,400 1,795 3590 6,810 6,810 4,310 4,310 5,625 5,625 8,000 8.000 $60,240 $126,485 Table 1.0 Represents the value of the attachments the City will receive when purchasing the KNC Golf, Inc. unit 1.0 Equipment Cost New Ventrac Tractor $33,700 Reel Mower 18,500 Blower 7,015 Aerator 7,940 Roller and Seeder Kit 3,685 Sod cutter 605 72 in Finish Mower 5,275 Vac loader 9,340 Trencher 7,580 Contour Mower 10,000 Total $103,640 Conclusion The proposed acquisition of equipment from the KNC Golf, Inc. will result in a total cost reduction, doubles the number of attachments, and will improve the operational functionality of the Parks Department. Your support for enactment of Ordinance 3455-2025 is respectfully requested. Page 3 of 3 The City of Kenai I www.kenaixit