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AGENDA REPORT
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| | | | | | | | DATE:
| April 20, 2021
| TO:
| Mayor and City Council
| FROM:
| Stefan T. Chatwin, City Manager
| | SUBJECT: | Resolution 2021-70 of the City Council of the City of Fairfield to Suspend Competitive Bidding and Authorize the City Manager to Purchase a Replacement Backhoe Loader |
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| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
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| | | | | | | | | STATEMENT OF ISSUE | | The Public Works Department is in need of a replacement backhoe loader. The cost of the replacement backhoe is included in the fiscal year 2020/21 budget. Adopting this resolution authorizes the purchase of a replacement backhoe loader from Holt of California for a total cost of $139,080. |
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| | | | | | | | | DISCUSSION | The Public Works Department Operations Division unit number 9437 is a 2009 Caterpillar backhoe loader that has reached the end of its first useful life. The repair to original purchase price ratio is greater than 78% while the industry standard for this type of equipment is to replace at or above 65%. This equipment is used on a daily basis to support Public Works sewer underground crews in the maintenance and repair of City-owned underground utilities.
The City has the opportunity to purchase a replacement Caterpillar backhoe loader that will meet the needs of the Department at a competitive price utilizing the Sourcewell national pricing structure. Sourcewell has awarded a contract (#032119-CAT) to Caterpillar for backhoe loaders through a competitive process. Caterpillar has agreed to sell the City a replacement backhoe loader at the Sourcewell price through their local dealer Holt of California. Utilizing the Sourcewell pricing will save the City over $34,000 compared to regional pricing.
Staff is requesting that the City Council adopt the attached resolution to suspend competitive bidding and authorize the purchase of a replacement backhoe loader from Holt of California for $139,080. The lead time to build a backhoe loader can be in the 120-160-day time frame from the date of purchase order issuance, which will result in this vehicle not being delivered until fiscal year 2021/22.
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| | | | | | | | | FINANCIAL IMPACT | | The total cost for the backhoe loader is $139,080. The funds budgeted in fiscal year 2020/21 will be carried forward to fiscal year 2021/22 in the Public Works Vehicle Replacement Fund (Fund 512, Responsibility Code 71001). |
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| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | N/A
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| | | | | | | | | ALTERNATIVE ACTION | | The City Council could reject this acquisition; however, this is not recommended due to the cost effectiveness of our overall fleet program. |
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| | | | | | | | | STAFF CONTACT | David Renschler, Fleet Division Manager
(707) 428-7414
drenschler@fairfield.ca.gov
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| | | | | | | | | COORDINATED WITH | Finance Department
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| REVIEWERS: | | Reviewer | Action | Date | | Kaushal, Paul | Approved | 4/5/2021 - 6:42 PM | | Alexander, Amber | Approved | 4/8/2021 - 7:07 PM | | Alexander, Amber | Approved | 4/12/2021 - 12:32 PM |
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