Consideration and Approval of Cooperative Contract:  Purchase of a Caterpillar 262D Skid Steer with Cold Planer in the amount of $80,907 and a Caterpillar 305E2 Mini Excavator in the amount of $70,493 from Empire Southwest, LLC (Empire) on a National Intergovernmental Purchasing Alliance cooperative purchase agreement with the City of Tucson (Bid# 161534-01) (Cooperative Purchase Agreement)

The Streets Section is looking to purchase a Caterpillar 262D Skid Steer with a Cold Planer and a Caterpillar 305E2 Mini Excavator for use in various projects around the City.  Due to the purchase amount of these pieces of equipment Council's approval is required.  

Historically, the Streets Section has rented this type of equipment from local vendors. However, this becomes an issue for work during the summer months as there has been a low availability of rentable equipment due to contractors coming in and renting them for the entire season to work on their projects.

Examples of projects that City staff commonly use a Skid Steer with Cold Planer and Mini Evacuator include:
 

• drainage work in developed communities and work on curbs and gutters
• removing distresses from the street surfaces which provide a smoother driving experience and longer roadway life
• utility cut repairs
• asphalt skim patches
• controlling or changing the height of part or all of the roadway to control heights and clearances of other structures such as curb reveals, manhole and catch basin heights, shoulder and guardrail heights, and overhead clearances
• change the slope or camber of the road or to do grade treatments, which are necessary for drainage

After discussing needs among staff and the Fleet Committee, it was decided that purchasing a Skid Steer with a Cold Planer and a Mini Excavator would ultimately help in completing projects in the most timely and cost-effective manner.

The Streets Section has budgeted funding in Fiscal Year 2018 of $90,000 for the purchase of a Caterpillar 305E2 Mini Excavator in account 040-06-161-0614-6-4402 and $100,000 for the purchase of a Caterpillar 262D Skid Steer Loader with Cold Planer in account 040-06-161-0614-6-4401. These are Highway User Funds (HURF) which is also known as the gas tax revenue.

N/A

Transportation and other public infrastructure.

No.

OPTION 1: Accept the Cooperative Purchase Agreement with Empire in the the amount of $80,907 for a Caterpillar 262D Skid Steer with Cold Planer and in the amount of $70,493 for a Caterpillar 305E2 Mini Excavator.  

OPTION 2: Reject the Cooperative Purchase Agreement with Empire and conduct an internal competitive bid process which will slow down the purchasing process and will likely ultimately end up with the same outcome.

OPTION 3: Reject the Cooperative Purchase Agreement with Empire and continue to rent from local rental companies, which will result in low availability and could impact the inability to complete work in a timely manner.

Because the City does not currently have a Caterpillar 262D Skid Steer with Cold Planer or a Caterpillar 305E2 Mini Excavator in its fleet, the Streets Section has had to rent one from local rental companies to do various jobs. Renting this equipment has become an issue in recent years as development continues to come into the City. During the summer months, it becomes very difficult to find these items as contractors come in and rent them all for the entire season.

As discussed with Streets Section staff and the Fleet committee, purchasing a Caterpillar 262D Skid Steer with Cold Planer and a Caterpillar 305E2 Mini Excavator will allow the Streets Section to complete necessary infrastructure projects in a timely and efficient manner.

When the decision was made to purchase a cold planer and a mini excavator, staff did research on used pieces of equipment to purchase, but the demand for these pieces are high and they found nothing available that would fit the Streets Section needs. Staff then looked into various contracts for the best pricing. The Cooperative Purchase Agreement had the most competitive pricing for these pieces of equipment. This is a national formal solicitation for bids for the purchase of such items. The process identified Caterpillar Corporation as the most responsive bidder; the local Caterpillar vendor is Empire.

The City has had a long working relationship with Empire for over 20 years and has their equipment currently in the fleet. Because of this long working history, Fleet Maintenance staff and Streets Section Equipment Operators have gained confidence in Empire's ability to provide warranty work, preventative maintenance, and product support as needed.

The warranty on the equipment is fully extended "bumper-to-bumper." It includes any defects in workmanship and materials for 3 years or 3,000 hours. The warranty does not cover items that are considered to be operating and maintenance items (ie. tires, oil changes, brakes, etc.).

A Caterpillar 262D Skid Steer with Cold Planer and a Caterpillar 305E2 Mini Excavator would help not only the Streets Section, but also many other sections in the City, such as Parks, Water Services and the Airport. This equipment does not currently exist in the City's Fleet.

• The Streets Section has had problems renting the Caterpillar 262D Skid Steers with Cold Planers and Caterpillar 305E2 Mini Excavators for various projects due to lack of availability from local companies.
• The Cooperative Purchase Agreement had the most competitive pricing for the equipment.
• The equipment would be purchased from Empire, with whom the City has a long and positive work relationship.

This purchase through the Cooperative Purchase Agreement from Empire would allow the Streets Section to provide the community with the level and quality of service they expect and deserve.

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