AGENDA CAPTION:
Title
Consider approval of Resolution 2022-50R, approving an agreement with Altec Industries, Inc. through the Sourcewell Cooperative Purchasing Contract for the purchase of electric utility equipment including one wire tensioner, two bucket trucks, and one digger derrick in the amount of $808,092.00; authorizing the City Manager or her designee to execute the agreement on behalf of the City; and declaring effective date.
Body
Meeting date: March 1, 2022
Department: Utilities, Tyler J. Hjorth - Director (by Lynda Williams, Purchasing Manager)
Amount & Source of Funding
Funds Required: Funded through finance purchase agreement approved by separate Council Agenda Item on this date March 1, 2022.
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Fiscal Note:
Prior Council Action: Approval of FY22 Budget which included capital outlay requests for these items.
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Background Information:
This purchase is for necessary equipment for the Electric Distribution Division. The assets being purchased include one (1) wire tensioner, (2) bucket trucks, and (1) digger derrick at a cost of $808,092. Each of these will replace equipment that is aged, obsolete, or has excessive repair cost history due to use. The existing wire tensioner, for example, was bought in 1983. The newest vehicle to be replaced was made in 2014 but used every day and has become costlier to maintain than to replace. This equipment is necessary to provide essential services and maintain infrastructure.
This equipment is being made through the Sourcewell purchasing cooperative contract 012418-ALT, from Altec Industries, Inc. of Birmingham, AL.
Under separate agenda item on this date, staff requests Council approval of a finance agreement by JP Morgan Chase, N.A. to fund this equipment over the next seven-years.
Council Committee, Board/Commission Action:
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Alternatives:
There is no fiscally responsible option.
Recommendation:
Staff recommends the approval of 222-027 Electric Utility Purchase from Altec Industries, Inc. of Birmingham, AL through Sourcewell purchasing cooperative contract #012418-ALT in the amount of $808,092.