HomeMy WebLinkAboutRES 900239RESOLUTION NO. 900 34
A RESOLUTION APPROVING tN AGREEMENT BETWEEN THE CITY OF
GEORGETOWN, TEXAS ARD CITY STAFF, AUTHORIZING THE PURCHASE
OF AUCTION EQUIPMENT, AND AUTHORIZING THE MAYOR TO EXECUCE
THE SANE;
NHEREAS; the City or Georgetown; Texas is the major supplier
of services within: its: corporate limits; and
WHEREAS, the City Council finds that safe and efficient:
operation of City owned equipment is essential to the distribution
of services from the Public Etilities and Community Services
divisions; and
IgHEREAS, the City Council has found that his action implements
Ctilities/Energy Policy 3 of the Century Plan, Policy Plan Element;
and is not found to be inconsistent or in conflict with any other
Century Plan Policies, as required by Section 2.03 of the
Administrative Chapter :of'.the Policy Plan,
NOW THEREFORT, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
GEORGET5NM TEXAS;
SECTION I. That the City Council Finds that the recitals
set forth above are-trueandcorrect and areincorporated herein.
SECTION 11. That the City Council approves the agreement
between the City of Georgetown, Texas and City Staff for purchase
of auction equipment through public auction in an amount not to
exceed $60,000.00, and that the funding source shall be Utility
Fund Council Contingency, ;and all backup information is attached
hereto and incorporatedherein as if fully set forth at length.
SECTION SII. That the Mayor is hereby authorized to
execute the contract documents and City Secretary to attest.
PASSED AND APPROVED this 8 day of MA4 , 1990.
APPROVED; ATTEST;
9MR CITY SECRETARY
CITY OF GEORGETo1CV
01ORBDUM
DATE: Play 1, 1990
TO: Mayor, City Council
and City prinager
FROMSim Briggs,11 is
Director of Public ft Mies
Hartley Sappington
Director of Conorudtt' Services.
RE: Public Auction Purchase: of Equipment
City staff recently attended a public auction in Temple, conducted.
by Muller &,Miller Auctioneers. This particular public auction was
held in order that Odel;Gar Construction could liquidate a majority
of his machinery holdingsto meet current debts, The equipment
offered ranged from front end loaders to all types of road
construction :equipment -and utility line construction equipment,
The prices that these particular pieces of: equipment are currently
valued, well exceeded the cast of purchase through the auction
process. To give an example, many pieces of equipment valued in
excess of $00400 to 570,000, were purchased in the range of
$8,000 to $121000. These pieces of equipment, many of which had
less than 1,000 hours, were obtainable with maintenance and repair
histories, Since this was primarily a field trip of information
gathering, City staff used the sale prices to evaluate cost
savings that could be realized through this process, rattier than
Purchasing new equipment or rehabilitation of existing equipment
in the fleet.
Attached to this memorandum, is a breakdown of some existing
equipment within the City fleetthat is scheduled for replacement
in the near future. A value isincluded for replacement at new
cost, Along with the replacement value on the breakdowns, staff
included the $ value of keeping the current equipment operating
until which time it can bereplaced,Past history of maintenance
costs from October 1988, plus any major expenses previous to that
date are also included,
With cost breakdown of equipment maintenance, according; to the
attached list of equipment, you can better evaluate the need for
replacement of equipment and its schedule for replacement,
Evaluation of the attached list will indicate that major dollars
are being; expended for maintenance -of:equipment that isout dated
and surpasses its useful life,
Page 2
Auction Purchases
On the, attached list of equipment scheduled for replacement, the
staff has identified equipment which is of high priority to
replace The total cost of replacement of such equipment, based
on current auction prices is approximately 5100,000.00. The
staff, however is requesting authorisation to spend an amount
not to exuad 560,000,00 from the Utility Council Contingency
Fund, at public auctions, toward the replacement of this
equipment.
FUNDING SOURCE Utility Fund Council Contingency
PROPOSED MOTION: See attached resolution,
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