Item 312/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: William E. Murray
Dept:
City Manager Dept: Public Works
Date: 8/13/2024
Subject: Authorization of the issuance of a purchase order to Coastline Equipment for two (2) new John Deere loader tractors. (Cost: $398,818.88) (Action Item)
OBJECTIVE
To secure City Council authorization to purchase two (2) new John Deere loader tractors from Coastline Equipment through the Sourcewell Cooperative Purchasing competitive bid program, Contract #011723-JDC.
BACKGROUND
The Public Works Department has two (2) loader tractors that currently meet the City’s guidelines for replacement and were approved through the FY 24-25 budget process. The vehicles are a 1998 Case loader tractor with 4183 hours, Serial# JEE0051487, and a 2001 John Deere loader tractor with 4565 hours, Serial # DW544HX579696.
Experience has shown that the City’s buying power is enhanced through joining with other public agencies to purchase fleet vehicles and equipment.
DISCUSSION
Sourcewell nationally solicits, evaluates and awards contra cts through a competitive bid process. As a member of Sourcewell, the City is able to utilize bid awards for equipment purchases. Staff recommends piggybacking on the results of a recent Sourcewell competitive bid program, Contract #011723-JDC. The results deemed Coastline Equipment as the lowest responsive bid.
Coastline Equipment (2 tractors) $398,818.88*
* This price includes all applicable tax and destination charges.
Item 312/2024
FINANCIAL IMPACT
The cost of purchasing two new John Deere loader tractors is $398,818.88. It will be paid from the Fleet Management internal service fund. The surplus equipment will be sold at public auction, and proceeds will be returned to the Fleet Management Fund.
RECOMMENDATION
It is recommended that the City Council:
Authorize the Finance Director to issue a purchase order in the amount of $398,818.88 to Coastline Equipment for the purchase of two (2) new loader tractors.
By: Steve Sudduth, Equipment Maintenance Supervisor
ATTACHMENT
John Deere quote