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AGENDA ITEM REVIEW FORM |
6.C.
Special City Council Meeting
- Meeting Date:
- 01/25/2023
- Department Head:
- Eulogio Vera
- Submitted By:
- Manuel Hernandez, Project Manager, Public Works Department
Action Requested:
ITEM:
Discussion and possible action on any and all matters regarding the purchase of a 7.5-ton bridge crane for the Fleet Maintenance Building Expansion. (Manuel Hernandez, Public Works Project Manager)
SUMMARY:
The Department of Public Works and its Fleet Services division are seeking Council approval to purchase a bridge crane for the Fleet Maintenance Building Expansion. A bridge crane will significantly improve the safety and efficiency of our vehicle and equipment repair and maintenance operations. The new bridge crane will help with moving and working on large pieces of equipment and parts such as truck beds, Vactor truck booms for wastewater operations, solid waste truck bodies, and other heavy equipment and parts. Currently, the Fleet Services division is utilizing forklifts and other means to move and lift heavy objects weighing up to 7.5 tons. The Fleet Services division is in need of a bridge crane.
Bridge cranes are specialized equipment and difficult to source. Three companies were solicited to provide a quote. Only two of the companies could provide a quote for delivery and installation. Advanced Industrial Solutions (Irvine, California) came in at $165,730. While Dearborn Crane and Engineering (Mishawaka, Indiana) came in at $103,800. The vendors have informed Public Works that there will be a price increase in February 2023. In order to align with the construction schedule, Public Works would need to purchase the bridge crane as soon as possible. This purchase has a lead time of approximately 10-12 weeks. Public Works anticipates a 25% increase in pricing, totaling approximately $130,000.
The Public Works Department is asking Council to approve this purchase in the amount of $130,000, approve a budget transfer as stated in the fiscal impact of the agenda item, and waive formal procurement procedures. This purchase falls under the provisions of City Code 3.05.010 (F) Procedures Waived.
Bridge cranes are specialized equipment and difficult to source. Three companies were solicited to provide a quote. Only two of the companies could provide a quote for delivery and installation. Advanced Industrial Solutions (Irvine, California) came in at $165,730. While Dearborn Crane and Engineering (Mishawaka, Indiana) came in at $103,800. The vendors have informed Public Works that there will be a price increase in February 2023. In order to align with the construction schedule, Public Works would need to purchase the bridge crane as soon as possible. This purchase has a lead time of approximately 10-12 weeks. Public Works anticipates a 25% increase in pricing, totaling approximately $130,000.
The Public Works Department is asking Council to approve this purchase in the amount of $130,000, approve a budget transfer as stated in the fiscal impact of the agenda item, and waive formal procurement procedures. This purchase falls under the provisions of City Code 3.05.010 (F) Procedures Waived.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE PURCHASE OF A 7.5-TON BRIDGE CRANE FROM DEARBORN CRANE AND ENGINEERING NOT TO EXCEED $130,000.00, AUTHORIZE BUDGET TRANSFER AS STATED IN THIS AGENDA FISCAL ITEM AND TO WAIVE FORMAL PROCUREMENT PROCEDURES FOR THE REASONS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $130,000
- BUDGETED AMOUNT:
- No
- AVAILABLE AMOUNT TO TRANSFER:
- Yes
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Special Services 100-110-80005 $190,051
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The bridge crane purchase was not a budgeted item; however, we have budget capacity from the industrial incentive policy. We budgeted 200 K to incentivize industrial businesses to come to the City. Due to the Shires' case and Arizona gift clause statutes, we have put a hold on the incentive program to reduce liability to the City. We are asking council approval to do a budget transfer of $130,000 from account 100-110-80005 to complete the purchase of the Bridge Crane Purchase as follows:
100-999-90015 $ 84,502.36
300-302-90015 $ 16,247.64
310-311-90015 $ 16,247.64
320-321-90015 $ 13,002.36
___________
$130,000.00
100-999-90015 $ 84,502.36
300-302-90015 $ 16,247.64
310-311-90015 $ 16,247.64
320-321-90015 $ 13,002.36
___________
$130,000.00