REPORT TO THE CITY COUNCIL
August 17, 2017
FROM: BRUCE A. RUDD, Assistant City Manager/Interim Director
Department of Transportation
BY: JIM SCHAAD, Assistant Director
Department of Transportation
DUANE MYERS, Fleet Manager
Department of Transportation, Fleet Management Division
CLIFF TRAUGH, Sr. Management Analyst
Department of Transportation, Fleet Management Division
SUBJECT
Title
Actions pertaining to a purchase contract with PB Loader Corporation:
1. Approve the award of a purchase contract to PB Loader Corporation of Fresno, CA, for the purchase of one Model L-250-CT PB Loader in the amount of $245,573.25
2. ***RESOLUTION - 13th amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 appropriating $245,600 for the purchase of one model L-250-CT PD loader (Requires 5 affirmative votes) (Subject to Mayor’s veto)
Body
RECOMMENDATION
Staff recommends Council approve the award of a purchase contract to PB Loader Corporation for the purchase of one Model L-250-CT PB loader in the amount of $245,573.25, and approve the 13th Amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 appropriating $245,600 for the purchase of one model L-250-CT PD loader.
EXECUTIVE SUMMARY
The Water Division, under the Department of Public Utilities, wishes to purchase one Model L-250-CT PB loader truck to replace an existing unit of similar specifications. This piece of equipment plays a key role in water system maintenance performed by the division, by efficiently removing concrete, asphalt, and soil materials from repair sites throughout the city. The existing unit has been in service five years beyond its recommended replacement schedule of ten years; therefore, it has exceeded its useful life. The Fleet Management Division recommends the purchase based on mileage and age. The replacement unit would be purchased through a competitively solicited cooperative procurement process administered by the National Joint Powers Alliance (NJPA).
BACKGROUND
The Water Division, under the Department of Public Utilities, is responsible for delivering safe drinking water to approximately 500,000 residential, commercial, and industrial customers over a 114 square mile area. This mission is accomplished through continuous repair and maintenance to the system. Maintenance and repair activities often require crews to excavate to expose water lines for repair or maintenance creating a mixture of concrete, asphalt, and soil. This mixture must then be removed and later, sorted, and recycled.
The Water Division currently uses a PB loader truck to efficiently remove material from repair sites throughout the city. It is a dual purpose dump truck and loader that has the ability to pick up material with its incorporated front bucket and drop the material into the rear dump body. The design allows one piece of equipment to do the same type of job normally done by a dump truck, loader, and trailer. The unit is more maneuverable than a truck and trailer in tight city streets, and eliminates unloading and loading time required for the dump truck-loader-trailer combination, allowing it to immediately start working when arriving at the site.
The existing unit has been identified for replacement since it has been in service five years beyond the recommended replacement schedule of ten years; therefore, has exceeded its useful life. The Fleet Management Division recommends replacement based on the unit mileage and age.
The equipment will be purchased utilizing competitively solicited cooperative procurement process administered by the National Joint Powers Alliance (NJPA). The purchase price per unit is $245,573.25. This price includes the NJPA discount applied to City purchases, as well as sales tax at 7.975 percent. The Purchasing Division has approved this contract and recommends Council to approve.
ENVIRONMENTAL FINDING
By the definition provided in the California Environmental Quality Act Guidelines section 15378, the award of this contract does not qualify as a “project”; therefore, it is exempt from the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference is not applicable. The City is not issuing an RFQ for this cooperative purchase agreement.
FISCAL IMPACT
The funding to cover the purchase cost of the Model L-250-CT PB loader unit has been included in the FY17 adopted budget under the operations of the Water Division. The funds were not spent in FY17; if approved, the FY17 funds will be re-appropriated to FY18 to complete this project. No general funds will be used to purchase this item.
Attachment:
Resolution Amending the AAR