Item #10
Date: June 7, 2022
To: Mayor and City Council
From: Jim Schaad, City Manager
Subject: Purchase of a Caterpillar 420 Backhoe Loader from Holt of California Recommendation:
Pass a Motion to 1) approve the award of a cooperative purchase agreement to purchase a Caterpillar 420 Backhoe from Holt of California of Sacramento, CA, in the amount up to of $180,000 through Sourcewell Open Contract # 032119-CAT and 2) authorize the Finance Director to make a supplemental appropriation $180,000 to 50-500-5401 to cover the cost to purchase the equipment.
Rationale for Recommendation:
The Public Works Department seeks to purchase one replacement backhoe to maintain sewer and stormwater systems. The new unit will be purchased as a replacement for the existing unit used by the sewer division, which is 23 years old and has accumulated 5,152 hours. Staff recommends purchase through a competitively solicited cooperative procurement process administered by Sourcewell, formerly the National Joint Powers Alliance (NJPA).
Background:
The department of Public Works is responsible for maintaining City sewer and storm water collection systems which span an area of 3.5 square miles. Public Works owns/operates two backhoes, one of which is a sewer enterprise fund asset. The backhoe is a critical piece of equipment that allows Public Works personnel to repair/maintain/upgrade collection systems throughout the city. The current backhoes are 21 and 23 years old, with 5,152 and 7,575 accumulated operating hours respectively. Repair costs for these units over the last year were estimated to be $14,800. Equipment downtime has been excessive as of recent due to mechanical failures and worn-out components. The units were manufactured in 1999 and 2001, with Tier 1 diesel engine emission levels that are significantly higher than the latest tier IV diesel engines.
Discussion & Analysis:
The sewer division backhoe has exceeded the expected economic life for this type of equipment, which is 5,000 hours. The backhoes have had numerous mechanical/electrical issues, making them costly to maintain, and unreliable. The Tier 1 engines, which have minimal emission controls, and negatively impact the City’s need to meet the In-Use Off-Road Diesel-Fueled Fleets Regulation. A new backhoe will allow Public Works staff to safely and effectively perform work associated with the City Sewer system. The competitively procured Sourcewell process allows the City’s limited staff to procure equipment in a more cost-effective manner.
Item #10
Alignment with City Council Goal(s):
This Agenda Item aligns with current City Council Goals #1, Increase Fiscal Sustainability and Goal #4, Enhanced Public Safety.
Fiscal Analysis:
The existing sewer division backhoe being replaced will be placed on the City surplus list once the new one arrives, and funds received will be allocated towards the purchase of the equipment.
Attachment:
1) CAT Quote
2) Sourcewell RFP
3) Contract Award
4) CAT Contract