Title
Department of Transportation recommending the Board approve the following:
1) Approve the addition of one (1) compact track loader to the Department of Transportation's Fiscal Year 2021-22 Fixed Asset list totaling $141,926.84, to be funded from savings identified from several fixed asset items;
2) Award Bid No. 22-760-039 for the purchase of one (1) New Compact Track Loader to the sole qualified bidder, RKU Distributing Inc. from Redding, CA; and
3) Authorize the Purchasing Agent to issue a purchase order contract for the purchase of one (1) New Compact Track Loader for Department of Transportation, Maintenance and Operations Division in the amount of $132,076.00 plus applicable taxes and fees (estimated at $9,575.51) for a one time purchase following Board approval.
FUNDING: Road Fund (100%).
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DISCUSSION / BACKGROUND
Department of Transportation, Maintenance and Operations Division (Transportation) is requesting a change in costs currently on the Fiscal Year 2021-22 Fixed Asset list, which would allow for the purchase of a compact track loader without an increase in the overall budgeted appropriations for Transportation's fixed assets. During the budget process, estimated costs were developed for the equipment. However, after obtaining approved quotes and purchase orders, savings have been identified from two (2) forklift loader attachments, two (2) 2-axle dump trucks, one (1) backhoe, and one (1) flail head mower attachment. Transportation is requesting to decrease the following fixed asset items:
- One (1) 2-axle dump truck bringing the total from $236,865 to $102,719.09 for a savings of $134,145.91
- Two (2) forklift loader attachments bringing the total for each item from $10,500 to $9,588.15 for a savings of $911.85 each
- One (1) flail head mower bringing the total from $115,000 to $112,872.05 for a savings of $2,127.95
- One (1) 2-axle dump truck bringing the total from $219,022.75 to $215,812.14 for a savings of $3,210.61
- One (1) backhoe bringing the total from $142,800 to $142,181.33 for a savings of $618.67
The price decreases will yield a total savings of $141,926.84. The identified savings are sufficient to purchase a compact track loader for road maintenance projects that meets Tier 4 Air Resource Board regulations.
At the request of Transportation, the Procurement & Contracts Division issued an invitation to Bid #22-760-039 for one (1) new compact track loader. The invitation to bid was posted on PlanetBids website for all interested vendors to respond. The first time the bid was posted, zero responses were received. The bid was posted a second time and one (1) qualified response was received. No local vendors responded, and RKU Distributing Inc. from Redding, CA, was determined to be the sole qualified bidder.
ALTERNATIVES
The Board may elect not to approve the changes to the Fiscal Year 2021/22 Fixed Asset list or purchase as proposed, although this would leave Transportation with inadequate equipment to complete road maintenance projects.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Procurement and Contracts
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The proposed change and purchase results in no increase to Net County Cost due to the reduction of cost in separate fixed asset list items. Funding is already identified in Transportation's Fiscal Year 2021-22 budget, therefore no budget amendment is needed.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Good Governance, Infrastructure
CONTACT
Rafael Martinez,
Director, Department of Transportation