REPORT TO THE CITY COUNCIL
June 14, 2018
FROM: JIM SCHAAD, Director
Department of Transportation
BY: DUANE MYERS, Municipal Fleet Manager
Department of Transportation/Municipal Fleet Division
CLIFF TRAUGH, Sr. Management Analyst
Department of Transportation/Municipal Fleet Division
SUBJECT
Title
Approve the award of a cooperative purchase agreement to Quinn Company of Fresno, California, for the purchase of two Caterpillar 914M wheel loaders in the amount of $282,000
Body
RECOMMENDATION
Staff recommends Council approve the award of a purchase agreement to Quinn Company of Fresno, California, for the purchase of two Caterpillar 914M wheel loaders in the amount of $282,000.
EXECUTIVE SUMMARY
The Department of Public Utilities, Solid Waste Management Division wishes to purchase two Caterpillar 914M wheel loaders to replace units past their useful life.
The two replacement units will be used by the Operation Clean Up team as the primary means of removing material placed at curbside by homeowners during the annual Operation Clean Up program. Each unit will be a Caterpillar 914M wheel loader equipped with a hydraulically controlled one cubic yard claw. This combination has proven to be reliable within the fleet and is the equipment preferred by the Operation Clean Up team.
The Department of Transportation recommends this purchase based on the age and hours of the units identified for replacement. The units would be purchased through a competitively solicited cooperative procurement process administered by the National Joint Powers Alliance (NJPA).
BACKGROUND
The Department of Public Utilities, Solid Waste Management Division is responsible for sanitation programs such as Operation Clean Up and litter control 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. The Solid Waste Management Division annually removes over 29,150 tons of refuse city-wide through these programs.
The wheel loader is an integral component in the Operation Clean Up program. This piece of equipment is used to pick up piles of material left curbside by homeowner and load the material into rear-loading refuse trucks. These loaders are outfitted with a hydraulically controlled claw capable of opening eight feet wide and picking up a cubic yard of material in one cycle. These units are rubber wheeled and can be driven to and from the job site, eliminating the need for a truck and trailer transport. The 914M is geared to reach speeds of 24 miles per hour; and, during the cleanup process, it is able to maintain continuous collection at a walking speed. The unit speed and loading capacity allows three crews and associated equipment to cover all of Operation Clean Up for the city in a ten-month period. In the remaining two months of the year, the units are deployed to assist in leaf removal for the Streets Maintenance Division. The Operation Clean Up team has utilized this type of equipment for more than 20 years and has found the Caterpillar 914M to be fast, sturdy, and reliable.
The wheel loader equipment class is on a ten-year or 5,000-hour replacement schedule, which has been established by the Municipal Fleet Management Division as the optimum replacement point. Currently, two units have been identified for replacement as they are over this target by both age and hours.
The equipment will be purchased utilizing competitively solicited cooperative procurement process administered by the NJPA. NJPA procurement documentation is attached. The purchase price per unit is $141,000. This price includes the NJPA discount applied to City purchases as well as sales tax at 7.975%. The City’s Purchasing Manager has determined that this NJPA procurement meets the competitive bidding requirements outlined in section 1208 of the City Charter and Administrative Order 3-1 and recommends Council to approve.
ENVIRONMENTAL FINDING
By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this agreement does not qualify as a “project.”
LOCAL PREFERENCE
Local preference is not applicable because this cooperative purchase agreement does not entail a City-run procurement process.
FISCAL IMPACT
No general funds will be used to purchase these items. The funding to cover the purchase cost of the two Caterpillar 914M wheel loaders has been included in the FY18 adopted budget under the operations of the Solid Waste Management Division.
Attachments:
NJPA Membership Agreement
NJPA Comment and Review Summary
NJPA Request for Proposal No. 32515
NJPA Proposal Evaluation
NJPA Acceptance and Award to Caterpillar, Inc.