That the City Council:
A.  Waive formal bid requirements per La Habra Municipal Code Section 4.20.070 (C) and utilize the cooperative purchase provision of a competitive bid contract awarded by the State of Minnesota, contract order #020223, for the purchase of one (1) new Caterpillar (CAT) 430 Backhoe Loader to replace existing units; and,

B.  Authorize the City Manager to issue a purchase order in the amount of $175,366.12 from the Fleet Replacement Fund to Quinn Company, City of Industry, California, for the purchase of one (1) new backhoe loader to replace an existing unit.

The Fleet Division of the Public Works Department recommends the purchase of one new backhoe loader that will be primarily used in the Water Division and that will replace one older existing unit, for which the replacement criteria is set at fifteen years and 2,000 hours. The City's current backhoe being recommended for replacement is a 2004 John Deere, Unit #3144 that has been in service for 20 years and has 3,516 operating hours. If the purchase is approved by Council, the existing backhoe will be placed in reserve/backup status and the City's existing backup loader, Unit #3143, which is a 1990 Case Backhoe with 5,354 operating hours, will be sold at auction.

The following are the current backhoe loaders that are recommended for immediate or upcoming replacement:

Staff reviewed the current State of Minnesota contract order #020223 with Caterpillar, Inc., of which Quinn Company, City of Industry, California is a vendor, and found competitive pricing through Sourcewell through the State of Minnesota for this replacement Backhoe Loader. The State of Minnesota pricing is based on a formal competitive bid process and provides pricing for the purchase of one new Caterpillar 430 Backhoe Loader that meets City specifications. The backhoe is expected to be ready for delivery approximately three months from the date of order. Staff is recommending the purchase of one new Caterpillar 430 Backhoe Loader, fully outfitted and ready for service, from Quinn Company, City of Industry, CA.

There is adequate funding available in the Fleet Replacement Fund's approved budget to complete this transaction. The adopted FY 2023-24 Fleet Replacement Budget allocates $180,000 in funding for the purchase of one new backhoe loader.