Staff recommends the City Council approve the purchase of one (1) Caterpillar compact excavator from Tractor and Equipment Co. in the amount of $114,605.91. 

The FY27 Equipment Replacement Plan includes the purchase of one compact excavator to support water and sewer maintenance and emergency repair operations. Staff obtained two quotations through the Sourcewell cooperative purchasing program, with Tractor & Equipment Company submitting the lowest quote for a Caterpillar compact excavator that meets the City's operational needs. Sufficient funding is available in the FY27 Water and Wastewater budgets, and staff recommends approval of the purchase.

The purchase of one (1) compact excavator is included in the approved FY27 Equipment Replacement Plan (ERP) and the FY27 Water and Wastewater budget. Compact excavators are an essential piece of equipment used by Water and Sewer Distribution and Collection crews to perform maintenance and emergency repairs. Their compact size allows crews to safely excavate in confined spaces and around existing utilities while minimizing damage to streets, sidewalks, landscaping, and other surrounding infrastructure, reducing both restoration costs and impacts to the public.

Staff recommends procuring the excavator through the Sourcewell cooperative purchasing program. Sourcewell competitively solicits and awards contracts on behalf of participating public agencies, allowing the City to obtain equipment at pricing that is comparable to, and often lower than, traditional competitive bidding while streamlining the procurement process. To ensure the City received the best value, staff obtained two Sourcewell quotations. Tractor & Equipment Company submitted the lowest quote for a Caterpillar compact excavator that meets the City's operational requirements. Accordingly, staff recommends awarding the purchase to Tractor & Equipment Company through the Sourcewell cooperative purchasing contract.

The compact excavator was included in the FY27 Equipment Replacement Plan and budgeted in the FY27 Water and Wastewater Funds in the amount of $118,706. The purchase price is below the budgeted amount, resulting in project savings. The remaining budgeted funds will be available to help offset cost increases or funding shortfalls for other equipment purchases included in the FY27 Equipment Replacement Plan.

City Council may:

• Approve purchasing one (1) 2026 Caterpillar compact excavator from Tractor and Equipment through Sourcewell; or,
• Not approve the purchase.  If the purchase is not approved, the existing compact excavator will continue to experience increasing maintenance costs and downtime as it has reached the end of its useful life. Extended equipment outages may reduce the City's ability to provide timely repairs and could negatively impact service levels.