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HomeMy WebLinkAboutResolutions - No. 2008-239RESOLUTION NO. 2008-239 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING SALE OF 1956 GALION ROAD GRADER AND USE AGREEMENT WHEREAS, the Streets and Drainage Division of the Public Works Department has a unique opportunity to remove a seldom -used but necessary piece of equipment from the fleet and still have an "as needed" right of use. The 1956 Galion road grader (Vehicle Unit No. 04-029) is used just a few times a year but has proven to be a valuable asset when needed; and WHEREAS, A.M. Stephens, Inc., of Lodi, proposed a use agreement by which it would take possession of the grader, provide all necessary maintenance, and make the grader available for the City's use when needed at no cost. This provides a good alternative to maintaining a needed but infrequently -used piece of equipment while providing the Streets and Drainage Division with access to a grader without the rental expense, which can be up to $2,000 a day; and WHEREAS, the use agreement allows A.M. Stephens to purchase the grader for $1,000. The estimated value of the grader in its existing condition is approximately $4,000. In return, A.M. Stephens, Inc., agrees to do all required maintenance and allow the Streets and Drainage Division to use the grader as needed at no cost. Should A.M. Stephens no longer need the grader, it will be returned to the Streets and Drainage Division at no cost; and WHEREAS, the use agreement shall be in effect through December3l, 2018, at which time it shall be re -negotiated. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the sale of the 1956 Galion road grader in the amount of $1,000 and authorize the City Manager to execute the use agreement with A.M. Stephens, Inc., of Lodi, California. Dated: December 17,2008 I hereby certify that Resolution No. 2008-239 was passed and adopted by the City Council of the City of Lodi in a regular meeting held December 17,2008, by the following vote: AYES: COUNCIL MEMBERS — Hitchcock, Johnson, Katzakian, Mounce, and Mayor Hansen NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS— None ABSTAIN: COUNCIL MEMBERS — None 2008-239 JOHL City Clerk