REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: MIGUEL RAMIREZ, Senior Management Analyst
General Services Department
SUBJECT
Title
Approve the award of a cooperative purchase agreement to Quinn Company of Fresno, California, for the purchase of one Caterpillar 914M wheel loader in the amount of $198,153 for the Department of Public Utilities, Solid Waste Management Division
Body
RECOMMENDATION
Staff recommends Council approve the award of a cooperative purchase agreement to Quinn Company of Fresno, California, for the purchase of one Caterpillar 914M wheel loader in the amount of $198,153 for the Department of Public Utilities, Solid Waste Management Division.
EXECUTIVE SUMMARY
The Department of Public Utilities, Solid Waste Management Division is requesting approval to purchase one Caterpillar 914M wheel loader as an addition to expand Operation Clean-Up services to include on-demand customers. The new unit will be used by the Solid Waste Management Division for alley maintenance, illegal dumping, and litter control. The new wheel loader will be purchased through a competitively solicited cooperative procurement process administered by Sourcewell (a State of Minnesota local government agency).
BACKGROUND
The Department of Public Utilities, Solid Waste Management Division is responsible for sanitation programs such as Operation Clean-Up, litter control, and FresGO for over 111,000 residential customers. Fifteen drivers service a 112 square mile area recycling discarded lumber, appliances, and various other large objects that would otherwise end up in a landfill. In 2024, Solid Waste Management removed over 20,900 tons of refuse from the city through these programs alone.
The Caterpillar 914M will be used to pick up and load debris into waiting refuse trucks during the alley maintenance, illegal dumping, and litter control clean-up process. The loader is outfitted with a hydraulically controlled claw capable of opening eight feet wide and picking up a cubic yard of material in one cycle. The loader is rubber wheeled and can be driven to and from the job site at 24 mph. This practice eliminates the need for a truck and trailer transport, saving time and money. The Operation Clean-Up team has utilized this type of equipment for more than 20 years and has found the 914M wheel loader to be reliable.
The new Caterpillar 914M wheel loader will be built to a specification similar to existing units, updated with the latest technology to increase fuel efficiency, and continue to meet the Tier 4 final emissions standard. The wheel loader will feature a newly developed hydraulic system that allows full operation at a lower RPM, increasing fuel efficiency across all aspects of operation.
Construction equipment is exempt from the California Air Resource Board’s Advanced Clean Fleets regulation and is not required to transition to zero emission technologies.
The equipment will be purchased utilizing a competitively solicited cooperative procurement process administered by Sourcewell. The total purchase price of the Caterpillar 914M wheel loader is $198,153, this price includes the Sourcewell discount applied to City purchases as well as delivery and sales tax at 8.35%. The Purchasing Division has approved this contract and recommends Council to approve.
The City Attorney has reviewed and approved to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
Local preference is not applicable because this is a cooperative purchase. However, Quinn Company is a local business as defined by the FMC.
FISCAL IMPACT
No general funds will be used to purchase this unit.
The Caterpillar 914M wheel loaders will be financed through the Master Equipment Lease Purchase Agreement (MELPA) with the first payment estimated to be $22,350 expected in FY2026. The funding to cover the biannual lease payments will be included in the proposed FY2026 budget under the operations of the Department of Public Utilities, Solid Waste Management Division. The source of funding for this project is the Community Sanitation Fund, generated by the collection of customer user fees.
This acquisition was originally intended to be purchased in FY2024. However to ensure the purchase aligned with available revenue, the Department of Public Utilities, Solid Waste Management Division, elected to delay the purchase of the Caterpillar 914M wheel loader until the Council approved the solid waste rate increase at the end of FY2024. As a result, the funding for this equipment was not spent in FY2024 and if approved, the FY2024 funds will be re-appropriated to FY2025 to complete the acquisition.
Attachment:
Cooperative Purchase Agreement
Caterpillar Contract #032119-CAT
Original RFP
Proof of Publication
Proposal Evaluation
Comment and Review