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HomeMy WebLinkAboutResolution No. 2012-11the city of KENAI, ALASKA Suggested by: Administration CITY OF KENAI RESOLUTION NO. 2012 -11 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A BID TO NORRIS AND SONS CONTRACTORS FOR TWO (2) 10CY -12CY END DUMP TRUCKS FOR THE TOTAL AMOUNT OF $60,000. WHEREAS, the City solicited bids for two (2)10CY -12CY end dump trucks (less than 75,000 miles); and, WHEREAS, the following bids were received on January 30, 2012: BIDDER Truck One Truck Two Total Bid Construction Machinery Industrial LLC 109,029 135,695 244,724 Norris and Sons Contractors 30,000 30,000 60,000 Trailer Craft Inc. 75,000 75,000 , and, WHEREAS, the bid from Construction Machinery Industrial LLC and Trailer Craft, Inc did not meet the minimum bid requirements; and, WHEREAS, Norris and Son's bid meets the bid specifications; and, WHEREAS, the recommendation from the City Administration is to award the bid to Norris and Sons; and, WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, the contract for the bid 10CY -12CY (two) end dump truck is awarded to Norris and Sons for the total amount of $60,000. PASSED BY THE COUNCIL OF THE CITY OF K'E AI, ALA KA, this 15th day of February, 2012. ATTEST: Sa(pdr. M sigh, -ity C,e Appro.ed by Finance: PAT PORTER, MAYOR "Vt'ffaye with a Past, Ci y with a Future 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 ,,21 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 lip 1992 MEMO: 1/ TO: City Council 11/1\t, FROM: Rick Koch DATE: February 8, 2012 SUBJECT: Resolution 2012 -11, Purchase of Two (2) 10 -12 CY End Dumps The purpose of this correspondence is to recommend Council approval of the above referenced resolution. The City's equipment replacement schedule provides for the replacement of an end dump in 2015 and another in 2016 for an estimated cost of $168,832 each. The end dumps currently in the City's fleet are thirty -one and thirty -two years old. Over the past several years maintenance costs have increased substantially. The City uses its end dumps for snow removal and for other relatively light -duty. As a result it is financially beneficial to purchase used low- mileage /hours trucks. The Administration has been observing the market to see if we could take advantage of attractive pricing for these pieces of equipment. The City solicited bids for two (2) used end dumps having been used for less than 75,000 miles, and are model year 1999 or newer. Three bids were received with the lowest bid at $30,000 per end dump. The result is a savings of $277,664 over the estimated purchase price in the equipment replacement fund (the cost of new equipment was estimated). These end dumps have been inspected and tested by our shop and other Public Works personnel and are in sound condition. Attached please find a copy of the Replacement Equipment Fund financial projections using the original estimated purchase cost of $168,832 each, and a copy using the proposed purchase cost of $30,000 each. Please note the projected year- ending equities and the substantial positive effect of this purchase in FY 2023. The Administration will continue to seek opportunities to purchase high quality used equipment when appropriate. If you have any questions, please contact me at your convenience.