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HomeMy WebLinkAbout22A - SPEC - BACKHOE TRACTORS0 * CITY COUNCIL MEETING DATE: AUGUST 16, 2016 TITLE: CONTRACT AWARD TO COASTLINE EQUIPMENT COMPANY FOR BACKHOE TRACTORS (SPEC. 16 -077) (STRATEGIC PLAN NO. 6,2) CITY MANAGgE RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Reject the bid from Yale /Chase Equipment and Services, Inc., as nonresponsive. 2. Authorize a one -time purchase and payment of purchase order to Coastline Equipment Company for the purchase of two backhoe tractors in the amount of $277,110 that includes a five percent contingency, and a $25,000 contract for as- needed tractor repairs for a total amount not to exceed $302,110, subject to nonsubstantive changes approved by the City Manager and City Attorney. DISCUSSION The Finance and Management Services Agency Facilities, Fleet Maintenance and Central Stores Division is responsible for the acquisition, maintenance, repair, and replacement of vehicles, trucks, and maintenance equipment. The City's Vehicle Replacement Policy provides guidelines and criteria for determining when vehicles need replacement. These criteria include vehicle age, mileage, maintenance costs, and safety history. As a result of reviewing the City's replacement criteria, two backhoe tractors purchased in 1989 and 1997 have been identified for replacement. These older tractors are utilized by the Public Works Agency Water Department to dig trenches for damaged water and sewer lines. Given the age of these two vehicles, maintenance costs and equipment downtime have increased. Replacing this equipment will reduce overall vehicle maintenance costs and improve the efficiency Public Works staff by providing more timely and consistent repairs of the City's water and sewer infrastructure. Coastline Equipment currently provides tractor repair services to the Fleet Maintenance Division as needed. The tractor purchase, when added to the vendor's fiscal purchases, will exceed the $25,000 aggregate limit. In order to continue utilizing their repair services, staff recommends maintaining the separate blanket order repair contract in the amount of $25,000. 22A -1 Contract Award for Backhoe Tractors August 16, 2016 Page 2 The Notice Inviting Bids was advertised on June 7, 2016, on the City's online bid management and publication system. A summary of the bid invitations and bids received is as follows: 7 Vendors were notified 8 Vendors downloaded the bid packet 3 Bid received 0 Bids received from Santa Ana vendors The bids were opened on June 30, 2016, and evaluated (Exhibit 1). The JCB product offered by Yale /Chase Equipment and Services, Inc., failed to meet the bid's equivalency requirements during a field test conducted by the Public Works Maintenance Division staff. The bid received from Coastline Equipment Company is responsive to the specifications and meets the City's requirements. To allow for unanticipated charges, a five percent contingency has been included in the backhoe tractors purchase price amount. STRATEGIC PLAN ALIGNMENT Approval of this item assists the City's effort to meet Goal #6 — Community Facilities & Infrastructure, Objective #2 (address deferred maintenance on City buildings and equipment). FISCAL IMPACT Funds in the amount of $138,555 are available in FY 2016 -17 Sanitary Sewer Service account (No. 05617640 - 66400) and the same amount in the Water System Maintenance account (No. 06017641 - 66400), for a total purchase payment amount of $277,110. Funds in the amount of $25,000 for tractor repairs are available in the FY 2016 -17 Equipment Maintenance - Garage Operations account (No. 07510100 - 62322). Public Works Agency FM /RR/CL /ds /sp Exhibit: 1. Abstract of Bids APPROVED AS TO FUNDS AND ACCOUNTS: f A A Francisco Gutierrez QD Executive Director Finance and Management Services Agency 22A -2 ABSTRACT OF BIDS BACKHOE TRACTORS (16 -077) Coastline Equipment Bidder Company Quinn Company Location Long Beach Foothill Ranch Model Year 2016 Tractor $221,950.00 $251,800.00 Hydraulic Hammer Attachment $22,414.00 $31,514.00 Destination and Delivery included included Sub Total $244,364.00 $283,314.00 Sales Tax - 8% $19,549.12 $22,665.12 Grand Total $263,913.12 $305,979.12 EXHIBIT 1 22A -3 22A -4