HomeMy WebLinkAbout07 AUTHORIZATION TO PURCHASE EQUIPMENT® Agenda Item
s; ~ ~ AG E N DR REPORT Reviewed:
City Manager
Finance Director
MEETING DATE: MARCH 20, 2012
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SUBJECT: AUTHORIZATION TO PURCHASE EQUIPMENT AND DECLARATION OF
SURPLUS EQUIPMENT FOR PUBLIC AUCTION
SUMMARY
Staff is requesting City Council authorization to purchase two utility trucks and one backhoe loader
for use by the Public Works Department. In addition, the City Council is requested to declare city
certain equipment surplus in accordance with Section 1626a (2) of the Tustin City Code and
authorize their sale at public .auction.
RECOMMENDATION
It is recommended that the City Council:
Adopt Resolution No. 12-22 authorizing the State of California Department of General
Services to purchase two (2} Chevrolet utility trucks from Coalinga Motors of Coalinga,
CA. in the amount of $67,785.55 and one (1) John Deere Backhoe Loader from Coastline
Equipment Long Beach, CA in the amount of $105,707.65;
2. Declare, in accordance with the Tustin City Code, Section 1626a (2), the attached itemized
list of equipment as surplus and not required for public use; and
3. Authorize the sale of the equipment listed above at the next available public auction and
apply net proceeds to applicable City Revenue fund.
FISCAL IMPACT
The State contract price for the purchase and replacement of two Chevrolet utility trucks and one
John Deere Backhoe Loader is $173,493.20 which includes all taxes, applicable fees, accessories,
delivery and early payment discounts. Sufficient funds have been budgeted and appropriated in
the Fiscal Year 2011-2012 Equipment Replacement Fund (Account 184-80-00-9710}.
DISCUSSION
The replacement of the two (2} utility trucks for the Field Services Division and one backhoe for
Water Services is necessitated by the condition of the existing equipment. Unit number 5626 is an
11 year old vehicle with nearly 70,000 miles and 14,000 hours of extended idle time while serving
as a traffic safety apparatus for crews working within the traveling roadway.
Unit 5609 is a 2002 Dodge one-ton utility truck with nearly 87,000 miles and is primarily used far
street sign repair and maintenance. Staff is recommending replacement of the truck and utility bed
due to mileage, wear and deterioration. The new truck and utility bed will also provide more
efficient tool and equipment storage to meet Field Services current needs.
Authorization to Purchase Equipment
March 20, 2012
Page 2
Unit 7050 is a 1996 John Deere backhoe loader that the Water Division has utilized to assist in
repairs and maintenance of waterlines, metered service connections, fire hydrants, and valves.
This backhoe has been in operation for over 5,000 hours is now experiencing periodic failures,
both in engine and hydraulics, during prolonged use. The acquisition of new equipment will
increase water staff efficiency by reducing jobsite downtime due to equipment failures. In addition,
the new backhoe comes standard with a diesel engine that complies with current air quality
regulations, in lieu of the diesel particulate filter that has been retrofitted on the older apparatus for
compliance.
In accordance with the City's purchasing policy, new vehicles and equipment can be purchased
through the state contract in due to the volume discounts received by the State. Staff also
contacted local dealers to obtain pricing for the like equipped one ton truck and heavy equipment
lift. However, the local pricing was not competitive with State contract rates.
The prices listed below include all taxes, applicable fees, rebates, delivery and early payment
discounts. State contract pricing includes a $500 discount for payment within 20 days, state tire
fees, delivery and optional equipment. Coalinga Motors and Coastline Equipment have submitted
the following proposal in accordance with the state contracts:
Division Model Cost Per Unit
Field Services 2012 Chevrolet 2500 Utility Truck $31,928.90
Field Services 2012 Chevrolet 3500 Utility Truck $35,856.65
Water Services 2012 John Deere 410K Backhoe Loader $105,707.65
* Accessories include bed appurtenances dump body, safety equipment, trailer hitch, etc.
In addition to the purchases requested above, staff is also requesting the declaration of the old
vehicles as surplus. Section 1626a (2) of the Tustin City Code requires the City Council to find that
these surplus items are not required for public use. The attached report of surplus equipment to be
sold at public auction specifies the estimated value at $22,000.
Douglas S. Stack, P.E.
[~ir~ctor of Public WorkslCity Engineer
,~
Attachment(s): 1. Surplus City Equipment List
2. Resolution 12-22
S:1City Council Itemsl2012 Council ItemsWuthorization to Purchase Equipment FY 11-12.doc
ATTACHMENT 1
REPORT OF SURPLUS CITY EQUIPMENT TO BE SOLD AT PUBLIC AUCTION
UNIT MODEL SERIALNIN NUMBER ESTIMATED
NUMBER YEAR DESCRIPTION VALUE
5609 2002 Dod e Utilit Truck 3B6KC26Z72M308241 $ 3,500
5626 2001 Dod e Truck 367KC26Z11 M283203 $ 3,500
7050 1996 John Deere Backhoe T0410DB825604 $ 15,000
ESTIMATED VALUE $ 22,000
ATTACHMENT 2
RESOLUTION NO. 12-22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA AUTHORIZING THE DEPARTMENT OF GENERAL SERVICES
OF THE STATE OF CALIFORNIA TO PURCHASE CERTAIN ITEMS
WHEREAS, the City has need to purchase various material, supplies and
equipment in order to conduct the operations of the City; and
WHEREAS, Section 1624, Item C of the Tustin Municipal Code authorizes the
State of California to purchase materials, supplies, and equipment if it can be acquired
more cheaply or efficiently by the state;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Tustin, California, does hereby authorize the Procurement Division, Department of
General Services of the State of California, to purchase two Chevrolet utility trucks and
a John Deere backhoe loader for and on behalf of the City of Tustin pursuant to Section
10324 of the California Public Contract Code, and that Mr. Jeffrey C. Parker, City
Manager, is hereby directed to sign and deliver all necessary requests and other
documents in connection therewith and for and on behalf of the City of Tustin.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin held on the 20t" day of March 2012.
John Nielsen, Mayor
ATTEST:
Pamela Stoker
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council is
five; that the above and foregoing Resolution No. 12-22 was duly and regularly passed and
adopted at a regular meeting of the City Council held on the 20t" day of March, 2012 by the
following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES;
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT
PAMELA STOKER,
City Clerk