HomeMy WebLinkAbout19 - CC-10 - Award the Purchase of One New 2015 Cat. - 10/6/2015CITY COUNCIL AGENDA REPORT
MEETING DATE: OCTOBER 6, 2015 ITEM NUMBER: CC -1 O
SUBJECT: AWARD THE PURCHASE OF ONE NEW 2015 CATERPILLAR 420F BACKHOE
LOADER
DATE: SEPTEMBER 24, 2015
FROM: PUBLIC SERVICES DEPARTMENT / MAINTENANCE SERVICES DIVISION
PRESENTATION BY: ERNESTO MUNOZ, PUBLIC SERVICES DIRECTOR
FOR FURTHER INFORMATION CONTACT: BRUCE LINDEMANN, MAINTENANCE
SUPERINTENDENT (714) 327-7470
RECOMMENDATION
Approve and authorize the Chief Executive Officer to execute an agreement for the
purchase of one (1) new 2015 Caterpillar Backhoe Loader, model 420-F2, with an
extended warranty and two (2) Caterpillar pin -lock buckets, through the National Joint
Powers Alliance (NJPA) #032515 -CAT with Quinn CAT Company, 25961 Wright Street,
Foothill Ranch, CA 92610 in the amount of $127,734.63.
BACKGROUND
Included in the City's adopted FY 2015-16 Operations and Capital Improvement
Budget, this purchase will replace two (2) existing backhoe -loaders with one new piece
of equipment. This will reduce the number of backhoe -loaders in the City fleet to more
cost effectively meet the operational needs of the Maintenance Services Division.
This purchase provides for a backhoe loader and two (2) buckets for the Street
Maintenance and Traffic Sections of the Maintenance Services Division. This vehicle
will replace two (2) backhoe -loaders that have exceeded their useful life: Unit #194 a
1986, Massy Ferguson 50 HX Backhoe which has extensive rust, body damage, worn
hand controls, and continuous hydraulic leaks that cause power loss and a poorly
running engine; Unit #361 a 1985, John Deere 510 backhoe that has a contaminated
hydraulic system, worn engine with leaking seals and weakened pivot points.
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Purchasing this piece of equipment using the National Joint Powers Alliance (NJPA),
Cooperative Contract #032515 -CAT, meets all requirements set forth in the City of
Costa Mesa's purchasing policy manual and all requirements set forth by the State of
California in regards to regional cooperative agreements. NJPA members receive a
21% discount off manufacturers suggested fleet pricing. The Quinn CAT Company
took an additional 3% off the suggested price, using their dealer discretionary discount
to arrive at the best possible price for the City.
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ALTERNATIVES CONSIDERED
The alternative to purchasing a new backhoe would be to retain the John Deere 510
and have it completely refurbished and eliminate the Massy -Ferguson backhoe, which
is well beyond its useful life and would be cost prohibitive to renovate. However, this
alternative would be costly and does not address items such as the lack of available
parts for future repairs or the City's goal of meeting California Air Resources Board
(GARB) requirements for meeting pollution reduction requirements for Tier Four heavy
equipment. Staff does not recommend this option.
FISCAL REVIEW
The Public Services Department FY 2015-16 budget provides $135,000 for the
replacement of this vehicle. The cost of the new Caterpillar 420-F2 Backhoe -loader
with two (2) buckets and extended warranty is $127,734.63, resulting in a savings of
$7,265.37 from the budgeted amount.
LEGAL REVIEW
There is no legal review required on this item.
CONCLUSION
Purchasing this budgeted piece of equipment using the National Joint Powers Alliance
cooperative contract meets all requirements set forth in the City of Costa Mesa's
purchasing policy manual and all requirements set forth by the State of California and
secures the most competitive pricing available for the City.
Therefore, staff recommends that the City Council approve and authorize the Chief
Executive Officer to execute an agreement for the purchase of one (1) new 2015
Caterpillar Backhoe Loader, model 420-F2, with an extended warranty and two (2)
Caterpillar pin -lock buckets, through the National Joint Powers Alliance (NJPA)
#032515 -CAT with Quinn CAT Company, 25961 Wright Street, Foothill Ranch, CA
92610 in the amount of $127,734.63.
ERNESTO MUNOZ
Public Services Director
ATTACHMENTS: 1
BRUCE HARTLEY
Maintenance Services Manager
Cost Quotation — Quinn CAT Company
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