DATE:
July 19, 2022
TO:
Chair and Board Members, Hesperia Water District
FROM:
Nils Bentsen, City Manager
BY:
Jeremy McDonald, Director of Public Works
Robert Worby, Fleet/Warehouse Supervisor
SUBJECT:
Equipment Procurement for Water Distribution Program
RECOMMENDED ACTION
It is recommended that the Board of Directors of the Hesperia Water District authorize the City Manager to approve the procurement of one (1) new Case backhoe and enter into a purchase agreement with Sonsray Machinery LLC, in an amount not-to-exceed $139,904.
BACKGROUND
The current backhoe is twenty-two years old and operates with a tier 0 engine. The California Air Resources Board (CARB) has mandated that all off-road fleets remain diesel compliant, requiring the retirement of not only tier 0 engines by 2028 through increasingly stricter standards, but also ultimately tier 1 through tier 3 as well. In addition, the backhoe has required numerous repairs to remain in service. Staff has located one backhoe that meets the program’s needs and is in stock for delivery.
ISSUES/ANALYSIS
Typically, a formal bid would be prepared for interested vendors to provide pricing with the lowest responsible/responsive bid presented to City Council and/or Board of Directors of the Hesperia Water District for authorization prior to purchasing the equipment. Due to current economic conditions, vendors are unwilling to hold prices on current and future inventory as demand outpaces supply due to the industry experiencing continued supply chain disruptions. In addition, manufacturing costs and freight charges are continually rising due to the price increases of raw materials and fuel.
The District’s current fleet is solely Case machinery, meaning staff is proficient with the standard operating bucket controls. Additionally, since the District owns several backhoe attachments that are specific to Case machinery, compatibility issues would arise. Should the District purchase a different manufacturer of a backhoe other than Case, retrofit hardware will be needed to utilize the necessary attachments. Staff solicited a quote from Sonsray Machinery, LLC the local Case dealer, who has a backhoe available for delivery.
FISCAL IMPACT
Funding for one (1) backhoe is included in the Fiscal Year 2022-23 Water Operating Adopted Budget.
ALTERNATIVE(S)
1. Provide alternative direction to staff.
ATTACHMENT(S)
None
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Board of Directors of the Hesperia Water District Equipment Procurement for the Water Distribution Program July 19, 2022