MEMORANDUM 06-178

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: October 13, 2006

Subject: Sewer Jet Purchase

Authorization and Budget Adjustment

The 2005 Public Works Budget includes $320,000 for the purchase of 4 pieces of equipment (an excavator, two loaders and a sewer jet). The first three pieces have been delivered to the City and were acquired for their budgeted amounts.

We have researched suppliers and venders that can replace the 1980 model Aqua Tech sewer jet and find that there is only one vendor in the State of Alaska (Denali Sewer & Drain, Anchorage, AK). Public Works prefers to purchase equipment from local venders that can provide support services during the warranty period and through out the life of the equipment.

We have requested and received a quote from this source for a comparable replacement. The quote for this equipment is for $51,684.50 (see attached). The fleet fund budget is $50,000.

Recommendation: The City purchase this replacement equipment under the sole source provisions of the City’s procurement manual from Denali Sewer & Drain, Anchorage, AK for the amount of $51,684.50. $50,000 will come from the Fleet Fund (152-5902-383) and the additional $1,684.50 will come from the Sewer Department’s Tools and Equipment budget (200-504-5231).