TITLE
Recommendation to adopt resolution authorizing City Manager to execute a contract and any amendments thereto with Denardi Machinery, Inc., dba D3 Equipment, for the purchase of four Case 590SM backhoes on the same terms and conditions afforded to the City of San Diego in the total amount not to exceed $383,346, plus a
10 percent contingency (or $38,335), if necessary and if funds are available. (Citywide)
DISCUSSION
City Council approval is being requested authorizing the City Manager to execute a contract for the purchase of four Case 590SM backhoes for the Long Beach Gas & Oil Department.
The Department of Public Works, Fleet Services Bureau, is requesting to purchase four Case 590SM backhoes as part of the 2009 replacement schedule in order to meet the deadline of March 1, 2010, to bring the City's use of off-road equipment to emissions compliant level. This will be achieved by replacing the older equipment with the new State of California Air Resources Board (CARB) certified powered equipment. This new equipment will replace existing equipment that is 20 years old, with a scheduled lifecycle of 12 years. The new backhoes will be issued to the Long Beach Gas & Oil Department, Construction Division, as the primary equipment used for street surface and earth removal. This equipment is used on a daily basis for the maintenance and installation of the main gas lines throughout the City of Long Beach.
The City Charter provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment and labor with other governmental agencies by purchasing under their contracts on a voluntary and selective basis when authorized by a Resolution of the City Council.
The Department of Public Works, Fleet Services Bureau, investigated procurement options and learned that the City of San Diego had completed a competitive bid process in October 2003. The bid was awarded to Denardi Equipment Inc., dba 03 Equipment of Santa Fe Springs, CA. Since this competitive bid process, the backhoe pricing has increased by 11.5 percent due to an increase in raw materials. After thorough review, the Fleet Services Bureau has determined that 03 Equipment meets the City's requirements. This cooperative purchase agreement will facilitate the timely acquisition of these backhoes and provide cost benefits to the City.
Denardi Equipment, Inc., dba D3 Equipment, has agreed to sell four Case 590SM backhoes to the City under the same terms and conditions as afforded to the City of San Diego. The Matrix Fleet Review Study also supports the use of cooperative purchase agreements and adherence to a long-term replacement plan.
This matter was reviewed by Deputy City Attorney Amy R. Burton on June 8, 2009 and Budget and Performance Management Bureau Manager David Wodynski on June 10, 2009.
TIMING CONSIDERATIONS
City Council action to adopt the attached Resolution is requested on July 7,2009 to ensure that the contract is in place expeditiously to minimize delivery turnaround time.
FISCAL IMPACT
The cost of this contract is $383,346 including tax, and is budgeted in the Fleet Services Fund (IS 386) in the Department of Public Works (PW). The Fleet Services Bureau has applied, through the State of California, for the Carl Moyer Off Road Vehicle Replacement Grant. If approved, the City will receive $152,500 to offset the acquisition-cost. The City will have the option of adding expenditures up t01 0 percent (or $38,335) above the contract amount, if necessary and if funds are available.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO PURCHASE FOUR CASE 590SM BACKHOES THROUGH THE AGREEMENT BETWEEN THE CITY OF SAN DIEGO AND DENARDI MACHINERY, INC. DBA 03 EQUIPMENT
Respectfully Submitted,
LORI ANN FARRELL
DIRECTOR OF FINANCIAL MANAGEMENT/CFO
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
NAME |
APPROVED: |
TITLE |
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PATRICK H. WEST |
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CITY MANAGER |