Agenda Item No: 1.d
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: September 3, 2024
Submitted by: Samantha Byfield
From: Public Works
Subject:
Purchase of One (1) New Loader for the Public Works Department Financial Impact:
Fiscal Impact:
Expense: $289,036.44 Total Purchase Price
Budgeted: $290,000.00 FY 2024-25 CIP Budget (Measure U 798504-6842) Summary:
Annually, the Public Works Department evaluates the City's fleet and recommends the replacement of existing vehicles and equipment based upon their useful service life and the needs of City operations. As part of the approved Fiscal Year (FY) 2024-25 Capital Improvement Program (CIP) Budget, the City Council budgeted funds to replace several vehicles and equipment including one new loader for the Public Works Department.
During the FY 2024-25 Budget development process, Staff identified the need to replace the loader. The current loader was purchased in 1991 and has exceeded its useful service life.
Sourcing parts for repairs for the existing loader has become increasingly difficult due to its age. The loader is used frequently by Staff at the Corporate Yard as well as for dig outs in the street to capture asphalt and transfer it to dump trucks. If approved, the replacement loader will be purchased from Sonsray Machinery. The total cost of the loader amounts to $289,036.44 which is based upon the Sourcewell Cooperative Purchasing price and reflects a 29% savings from standard pricing. A total of $290,000 was budgeted in the FY 2024-25 CIP Budget for this purpose. The recommended actions will approve the purchase of the proposed equipment using the available budgeted funds.
Recommendation:
Recommended Action: It is recommended that the City Council:
1. Approve the purchase of one (1) 2024 Case 721 G Wheel Loader from Sonsray Machinery in the amount of $289,036.44; and
2. Authorize the City Administrator to approve invoice changes up to 10% of the quoted amount; and
3. Authorize the City Administrator and/or his designee to issue a purchase order to Sonsray Machinery for this equipment and execute all necessary documents in a form approved by the City Attorney.
Strategic Plan Statement:
There is no specific strategic planning goal or objective associated with this agenda item.
Discussion:
The City Council budgeted funds in the current fiscal year to purchase a new loader for the Public Works Department. For this purchase, Staff selected a 2024 Case 721G Wheel Loader as a suitable replacement due to its comparable size and available equipment options.
Pursuant to the City of Placentia Municipal Code, Section 3.08.070, purchases of supplies, services and equipment may forego bid procedures when participating in an established governmental cooperative purchasing program. The quote solicited from Sonsray Machinery is reflective of a Sourcewell cooperative purchasing agreement with Case Construction which specifies a 29% discount off the list price of equipment. Sonsray Machinery is the authorized Case Construction dealer for the western region in the United States. The City of Placentia is a member of Sourcewell and has used Sourcewell contracts in the past. Therefore, under the City's purchasing policy, the City may award the contract without competitive procurement and may use the Sourcewell's Purchase Contract No. 011723 -CNH -1 with Case Construction for the proposed purchase.
As such, Staff recommends the purchase of a 2024 721G Wheel Loader from Sonsray Machinery in the amount of $289,036.44, utilizing budgeted funds within the Fiscal Year (FY) 2024-25 Capital Improvement Program (CIP) Budget.
Fiscal Impact Summary:
A total of $290,000 in Measure U funds were budgeted in the FY 2024-25 CIP Budget for this purchase. The quote from Sonsray Machinery to purchase one (1) 2024 Case 721G Wheel Loader is for a total of $289,0363.44. As such, sufficient funds exist for the recommended actions.
Attachments
Attachment 1 - Quote from Sonsray Machinery.pdf
Attachment 2 - Sourcewell Contract No. 011723 -CNH -1