Title
Department of Transportation recommending the Board:
1) Approve the $62,606.76 price decrease on the Fixed Asset List for three (3) loaders bringing the revised budget from $660,000 to $597,393.24;
2) Approve the $741.16 price decrease on the Fixed Asset List for one (1) chipper bringing the revised budget from $60,000 to $59,258.84;
3) Approve the $63,347.92 price increase on the Fixed Asset List for two (2) 6-Wheel Hook Loaders revised budget from $340,000 to $403,347.92;
4) Find that the purchase of two (2) 6-Wheel Hook Loaders are exempt from competitive bidding in accordance with Purchasing Ordinance 3.12.160, Section D;
5) Authorize the Purchasing Agent to utilize the State of California competitively bid Contract 1-18-2-20 A-I for the acquisition of two (2) 6-Wheel Hook Loaders for the Department of Transportation, Maintenance and Operations Division; and
6) Authorize the Purchasing Agent to sign a purchase order to the awarded State of California vendor, Riverview International Trucks, LLC of West Sacramento, California in the amount of $375,899.14 plus applicable delivery, fees and taxes (estimated at $27,448.78) for a one time purchase for two (2) 6-Wheel Hook Loaders following Board approval.
FUNDING: Road Fund (State).
Body
DISCUSSION / BACKGROUND
The Department of Transportation, Maintenance and Operations Division, (Transportation) is requesting a change in the individual equipment budgets currently on the FY 2020-21 Fixed Asset List, without an increase in the overall budget for Transportation's fixed assets. In anticipation of the FY 2020-21 budget development process, and in order to request equipment for the Fixed Asset list, the Department reached out to companies for approximate costs, reviewed equipment, researched estimates online, and attempted to anticipate possible increases/decreases for equipment prices as the market is very volatile. Equipment costs will often change with different tariffs, fees, seasons, and construction demands.
The two (2) 6-Wheel Hook Loaders (Hook Loaders) will replace existing equipment that is dated, in poor mechanical condition, and will soon no longer meet Air Resource Board regulations. The Hook Loaders will be more versatile with the hook loader capability and with a vastly improved emissions system. The Hook Loaders are on the Board-approved Fixed Asset List for Fiscal Year 2020-21.
The County Purchasing Ordinance, Section 3.12.160, describes exceptions that may be made to the competitive bidding process. The purchase of these fixed assets falls under (D) of this section, which requires that the item 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 these purchases, the Department is able to utilize the State of California competitively-bid Contract 1-18-2-20 A-I with Riverview International Trucks, LLC of West Sacramento, California for the purchase of the two (2) 6-Wheel Hook Loaders The department has also complied with the requirement for a comparative market analysis, as required by the purchasing ordinance (see attachment C).
ALTERNATIVES
The Board may elect to not approve the purchase of the Hook Loaders; however, this would leave Transportation with inadequate equipment to perform services on County roadways.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel approved the State of California contracts
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The proposed purchase of fixed asset items result in no increase to Net General Fund cost due to savings realized from procured fixed asset items. Funding for this equipment is available in the Road Fund. No budget amendment is needed to purchase the items. Existing Fixed Asset appropriations will be re-allocated between Fixed Asset items as detailed above.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Good Governance, Infrastructure
CONTACT
Rafael Martinez, Director
Department of Transportation