Title
Department of Transportation recommending the Board:
1) Approve and authorize the Chair to sign a Budget Transfer adjusting the budget for Fiscal Year 2021-22, in the amount of $281,000, to allow for the purchase of one (1) wheel loader for the Department of Transportation;
2) Approve the addition of one (1) wheel loader to the Department of Transportation, Maintenance and Operations Fixed Asset List;
3) Find that the purchase of one (1) wheel loader is exempt from competitive bidding in accordance with Purchasing Ordinance 3.12.16, Section D;
4) Authorize the Purchasing Agent to utilize the Sourcewell competitively bid Contract 032119-JDC for the acquisition of one (1) wheel loader for the Department of Transportation, Maintenance and Operations Division; and
5) Authorize the Purchasing Agent to sign a purchase order to the awarded Sourcewell vendor, Pape Machinery of Sacramento, CA, in the amount of $261,975 plus applicable delivery, fees and taxes (estimated at $19,000.19) for a one-time purchase for one (1) wheel loader following Board approval.
FUNDING: Road Fund (25%) and Insurance Claim Revenue (75%).
Body
DISCUSSION / BACKGROUND
The Department of Transportation (Transportation) requests to add one wheel loader to the fixed asset list to replace a previous piece of equipment. Loader 51-09 was stationed in the Grizzly Flats area when the Caldor Fire scorched the piece of equipment. Transportation finds it essential to replace the piece of equipment prior to winter removal operations for the Grizzly Flats area. An insurance claim was made for the loader, and Transportation was notified that a reimbursement check was received on April 14, 2022, in the amount of $212,650. The current quote for a replacement loader was quoted for approximately $281,000. Transportation proposes to use savings in its Fiscal Year 2201-22 salary budget to account for the difference in cost.
The County Purchasing Ordinance, Section 3.12.160, describes exceptions that may be made to the competitive bidding process. The purchase of the loader falls under (D) of this section, which requires that the items may be procured from a vendor that has a contract with another public agency; that the contract was awarded utilizing a competitive bidding process substantially the same as the County's; and that the item and terms of the transaction are the same, or substantially the same. For this purchase, Transportation is able to utilize the Sourcewell competitively-bid Contract 032119-JDC with Pape Machinery of Sacramento, CA, for the purchase of one (1) wheel loader.
ALTERNATIVES
The Board may elect not to approve the purchase of the fixed asset as proposed, although this would leave Transportation with inadequate equipment to efficiently perform road maintenance and snow removal operations.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Administration and Finance Division of the Chief Administrative Office, County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no increase to Net County Cost. The proposed budget transfer increases appropriations in Fixed Assets, however provides for a net zero increase due to revenue received from insurance claim for loader 51-09 and reduction in salaries due to salary savings.
CLERK OF THE BOARD FOLLOW UP ACTIONS
The Clerk of the Board will obtain the Chair's signature on the original budget transfer and will forward the budget transfer to the Auditor/Controller for processing.
STRATEGIC PLAN COMPONENT
Good Governance, Infrastructure
CONTACT
Rafael Martinez, Director
Department of Transportation