That the City Council:
A.  Per La Habra Municipal Code Section 4.20.070 (C), utilize the cooperative purchase provision of a competitively bid contract awarded by the State of Minnesota, contract order #011723 for the purchase of one (1) new Caterpillar (CAT) 930 Wheel Loader to replace existing units; and,

B.  Authorize the City Manager to issue a purchase order in the amount of $231,677.55 from the Fleet Replacement Fund to Quinn Company, Industry, California, for the purchase of one (1) new wheel loader to replace an existing unit.

In June 2024, the City Council approved the adopted Fiscal Year 2024-2025 municipal budget, which included funding in the City's Fleet Replacement budget for the purchase of one new wheel loader for the Public Works Department to replace an existing unit.  If approved, this new wheel loader will replace the Department's current front line wheel loader, a 2005 John Deere Unit 4134, which will be placed in reserve/backup.  If this purchase is approved, the City's current reserve/backup unit, a 1985 John Deere loader Unit 4133, will be sold at auction. The Department's current replacement criteria for this equipment is set at 15 years and 2,000 hours. Both existing units, Unit #4133 and Unit #4134, have exceeded the City's replacement criteria as noted below:

Staff reviewed the State of Minnesota's current contract order #011723 with Caterpillar, Inc., of which Quinn Company, City of Industry, California is a vendor, and found competitive pricing for this replacement wheel loader. The State of Minnesota pricing is based on a formal competitive bid process and includes pricing for new Caterpillar 930 Loaders that meets City specifications. The City's purchasing policy and municipal code allows for the use of cooperative purchase provisions in competitively bid contracts from other public agencies. If this purchase is approved, staff expects delivery approximately seven months after the order is placed.

The City Council approved and adopted the Fiscal Year 2024-2025 Fleet Replacement Budget which included $250,000 for the purchase of one new wheel loader. The $231,677.55 quote provided through the State of Minnesota's competitively bid process for the purchase of the recommended loader is within the budgeted amount allocated in the FY 24-25 budget.