Report to Mayor and City Council
Tuesday, June 01, 2021
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF A PURCHASE ORDER AGREEMENT WITH QUINN CO. FOR THE PURCHASE OF A SKID STEER LOADER AND ASSOCIATED ATTACHMENTS IN THE AMOUNT OF $121,375.28, AND APPROVING RESOLUTION NO. 21-069 AMENDING THE FISCAL YEAR 2020-21 BUDGET (CITY COUNCIL)
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I. SUMMARY
Public Works is requesting City Council to approve a Purchase Order through Sourcewell, formerly known as National Joint Powers Alliance (NJPA) in the amount of $121,375.28 for the purchase of a new Caterpillar Model-272D3 Skid Steer Loader and the associated equipment attachments required for Right of Way (“ROW”) activities (Exhibit No. 1).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. WAIVE the formal bid process defined by the Carson Municipal Code, Section 2607, as allowed by Section 2605 (1) (ii).
2. AUTHORIZE the Purchasing Manager to utilize Cooperative Purchasing as allowed by Section 2611 (g) and issue a purchase order not to exceed $121,375.28 for one new CAT 272D3 Skid Steer Loader and the associated equipment attachments required for ROW activities.
3. AWARD a purchase agreement to Quinn Co. in the amount of One Hundred and Twenty-One Thousand Three Hundred Seventy Five and Twenty-eight Cents ($121,375.28) for the purchase of a CAT 272D3 Skid Steer Loader and the associated equipment attachments required for ROW activities.
4. APPROVE Resolution No. 21-069, “A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2020-21 BUDGET IN THE GENERAL FUND AND SPECIAL REVENUE”
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate, consistent with the requirements of the law.
IV. BACKGROUND
The Public Works Department maintains a fleet of heavy equipment that is used for not only daily maintenance and operations services, but also emergencies. Replacement of worn-out equipment is part of the ongoing effort to maintain fleet reliability and sustainability. The department is requesting the purchase of equipment to be able to continue services in the ROW Division, which includes streets and sidewalks. By replacing equipment at the end of their useful life, the City will save money by using staff, reduce out-of-commission time, and increase safety.
The items described above are routinely used by the Concrete and Street Maintenance crews to perform ROW maintenance activities such as the removal and replacement of deteriorating sidewalks and streets. This equipment has reached the end of its usable service life and is recommended for replacement. The existing equipment is frequently in and out of service due to mechanical breakdowns. This purchase will replace the existing unit #804 which is a 1999 New Holland 545D tractor. Replacement parts for this equipment are no longer readily available.
Sourcewell is a contracting agency established to allow participating municipal agencies to reduce the cost of procurement by leveraging the benefits of cooperative purchasing. Through solicitations, Sourcewell contracts bring considerable value and efficiencies to members through nationally leveraged contracted suppliers with access to the highest quality products and brands. Each solicitation and RFP contains language that includes all qualified customers in all fifty states. Sourcewell contract purchasing solutions are reviewed by the Sourcewell Board of Directors and awarded on the members’ behalf. The City of Carson (#38521) is a member of Sourcewell.
A Sourcewell quote #148851-01 for this equipment was prepared for the City on May 20, 2021. The price for a new CAT 272D3 Skid Steer Loader and the associated equipment attachments required for ROW activities is $121,375.28. If this item is approved, the existing equipment will be removed from inventory once the new equipment is received. The larger attachments include a hammer and a cold planer.
Per the City’s current Purchasing Guidelines and Carson Municipal Code, any expenditures totaling over $25,000.00 per fiscal year for a single vendor require City Council approval. Staff is submitting Resolution No. 21-069, for approval to execute a budget transfer to pay Quinn in the amount of $121,375.28.
The City Attorney’s Office was consulted for this purchase and has advised that under the Purchasing Ordinance a purchase contract was not necessary.
V. FISCAL IMPACT
Funds are available for these items in the FY 2020/21 budget; therefore, if the Recommendations are approved, $120,000 will be transferred from account 101-80-820-100-6004, and $5,000 will be transferred from account 101-80-840-275-7003. All transferred funds will be appropriated to account 638-99-999-999-8003 for the purchase of the Skid Steer Loader and associated attachments.
VI. EXHIBITS
1. Quotation/Equipment Specifications from Quinn Company (pgs 4 - 8)
2. Resolution No. 21-069 (pgs 9 - 10 )
Prepared by: Veronica Rodriguez, Superintendent of Right Of Way