10.F.
City Council Meeting - FINAL
- Meeting Date:
- 05/07/2013
- From:
- Mark Richardson, Operations Manager
Information
TITLE:
Consideration and Approval of Purchase Under National Intergovernmental Purchasing Alliance Contract: Purchase one (1) Four Wheel Drive Backhoe Loader with Attachments.
RECOMMENDED ACTION:
Purchase (replace) one (1) four wheel drive backhoe loader with attachments - 420F Backhoe Loader from Empire Caterpillar Equipment of Flagstaff, Arizona in the amount of $103,037.00 plus tax and added fees for a replacement of the Water Distribution Section's 1991 John Deere 510D backhoe loader with attachments.
Policy Decision or Reason for Action:
The Utilities Division - Water Distribution Section needs to replace this older equipment with newer more efficient equipment that will allow the Water Distribution Section to maintain its current level of service.
Financial Impact:
The Utilities Division - Water Distribution Section has budgeted $130,000.00 in fiscal year 2013 in account 201-49-01-731-4401. The bid list price of the 420 Backhoe Loader with attachments is 103,037.00 plus tax and added fees. A portion of the remaining funds will be used for additional lighting, radios, and safety equipment.
Connection to Council Goal:
1. Repair Replace maintain infrastructure (streets & utilities)
Has There Been Previous Council Decision on This:
No
Options and Alternatives:
Option A: Accept state contract bid from Empire Caterpillar as the lowest responsive bidder for the amount of $103,037.00 (One Hundred and Three Thousand, Thirty-Seven Dollars) plus taxes and fees for one (1) four wheel drive backhoe loader with attachments.
Option B: Reject the proposal and continue to use the existing 1991 backhoe loader while increasing repair & maintenance and decreasing reliability of this 22 year old piece of equipment.
Option B: Reject the proposal and continue to use the existing 1991 backhoe loader while increasing repair & maintenance and decreasing reliability of this 22 year old piece of equipment.
Background/History:
The existing 1991 John Deere 510D backhoe loader is 22 years old and has been experiencing high maintenance costs. This piece of equipment was budgeted and approved for replacement for this fiscal year. The Fleet committee has also approved this vehicle replacement and it meets the new "fleet replacement policy.”
Key Considerations:
The warranty on the new backhoe is 3 years or 5,000 hours including a 12 month travel time and warranty. The warranty does not cover items that are considered to be operating and maintenance items (tires, oil changes, brakes etc.). Replacement of this older piece of equipment is critical to improve the reliability of our water system maintenance during emergency breaks by minimizing equipment failures.
Expanded Financial Considerations:
The Purchase / replacement of old equipment has been built into the Capital program of the Utilities Division and is part of the rate structure. The purchase of this equipment is included in account 201-49-01-731-4401. The bid list price of $103,037.00 plus tax and other fees is attached. A portion of the remaining funds will be used for additional lighting, radios, and safety equipment. The total estimated cost for the backhoe loader with attachments, safety equipment, lighting and radio is $130,000.00.
Community Benefits and Considerations:
Currently the Utilities - Water Distribution Section has two (2) backhoe loaders in its fleet. The replacement of one old, four wheel drive backhoe loader with attachments will allow for the Utilities – Water Distribution Section to meet the expected level of service to the community, as it will improve our operation. Breakdowns associated with older equipment could increase response times and delay the repairs to the water distribution system when breaks occur.
Council Action:
05/07/13 - APPROVED - SLS