Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A PURCHASE AGREEMENT WITH SOUTHEASTERN EQUIPMENT COMPANY, INC. FOR A GRADALL WHEELED EXCAVATOR FOR PUBLIC WORKS DEPARTMENT OPERATIONS; AND DECLARING AN EMERGENCY.
Brief Description: This resolution provides for the replacement of an existing Gradall wheel excavator for use in the Public Works Department. The existing unit was severally damaged in a traffic accident while being transported for repairs by a contractor and was subsequently deemed a total loss by the insurance company.
Body
Legislative History
None.
Purpose & Explanation
Stormwater employees within the Public Works department use a Gradall all-wheel drive wheeled excavator to dig and clean roadside ditches. This machine was purchased in 2014 for $263,256.00. The maintenance of these roadside ditches prevents stormwater backups and keeps water flowing in the stormwater system. On average, employees maintain about five miles of ditches annually. In July of 2020, the Gradall required a large repair. Southeastern equipment arranged for the transport of the machine. The transport company (Hook-n-Haul) picked up the unit on July 27. The driver drove through downtown Hudson and made severe contact with the railroad underpass on Rt. 91. Eventually, insurance adjusters totaled the Gradall. An insurance check in the amount of $233,167.67 was issued to the City for the adjusted, depreciated value of the unit. Unfortunately, the cost of a new replacement machine has risen to $322,632.00. Staff needs to expedite the purchase of a new Gradall to continue to perform the maintenance of the stormwater system. The insurance check and additional funding from the Fleet Fund would need to be appropriated to cover the cost of the new machine. Emergency language is being requested by staff due to the lead time required for the new Gradall. With minimal ditching performed last year, there is a significant list of requests for these services and staff wishes to have the new machine in place to begin meeting these requests early in the spring of 2021.
Cost of Replacement Gradall Wheeled Excavator: $322,632.00
Insurance Check Amount: $233,166.67
Additional Funding Required: $89,465.33
Sourcewell Cooperative Purchasing (formerly NJPA) was used to secure pricing. The contract number is 031014-GRD.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
X Joint or Cooperative Purchase Program Sourcewell Contract # 031014-GRD
Professional Services
Other [provide explanation]
Fiscal Impact
Currently Budgeted
X Supplemental Appropriation Required ($233,166.67 from insurance payment; $89,465.33 from Fleet Fund - with 1st Quarter 2021 Appropriations Ordinance)
Appropriation Not Required
Does this legislation require use of an emergency clause?
X Yes, emergency language is being requested by staff due to the lead time required for the replacement equipment (see Purpose & Explanation for additional details).
No
Recommendation
Suggested Action
Staff recommends that City Council approve this Resolution authorizing the City Manager to enter into a contract with Southeastern Equipment Company, Inc. for the purchase of one (1) Gradall XL3300 at the Sourcewell price of $322,632.00. Staff further requests an appropriation of the insurance funds in the amount of $233,166.67 and additional funds in in the amount of $89,465.33 to cover replacement costs.
Submitted
Jane Howington, City Manager
Frank J. Comeriato, Jr., Assistant City Manager-Operations
Eric Hutchinson, Assistant Public Works Director-Services