HomeMy WebLinkAboutStaff Report 4.C 12/17/2018DATE: December 17, 2018
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan �t:'oF SCE — Director, Public Works and Utilities
Kent Carothers, P.E. — Operations Manager
SUBJECT: Resolution Approving Purchase of CAT Backhoe Loader under National
Intergovernmental Purchasing Alliance Cooperative State Pricing totaling
$107,899.28 through Petersen Cat and Authorizing the City Manager to Execute
all Documents Necessary to Complete the Purchase.
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Approving Purchase of
CAT Backhoe Loader Under National Intergovernmental Purchasing Alliance Cooperative
Pricing Totaling $107,899.28 Through Petersen CAT and Authorizing the City Manager to
Execute all Documents Necessary to Complete the Purchase.
BACKGROUND
The Public Works and Utilities Department currently has a need to replace two backhoes that are
no longer in compliance with the Air Resource Board and are no longer considered reliable due
to age and hours of use. The budget request to purchase one new CAT Backhoe to replace the
two being suiplused was approved in the FY 18/19 budget.
DISCUSSION
The 1987 Case Backhoe, vehicle #720, was evaluated and determined to be no longer fit for use
due to expensive mechanical issues and non-compliance with the Air Resource Board tier zero
motor regulations. The 1996 JCB Backhoe, vehicle #537, is still in use at the Corporation yard
but is also non-compliant with the Air Resource Board regulations.
Under the Petaluma Municipal Code, Section 4.04.100, Cooperative purchasing programs, the
purchases of supplies and equipment made under a cooperative purchasing program with the
state, county or other public agencies that have been competitively bid and awarded is allowed.
The recommended purchase meets these requirements by using the National IPA program and
the quoted prices were determined to be less than listed pricing at the regional CAT dealer.
Therefore, using the cooperative purchasing program benefits, the City will be saving on the
purchase price and saving staff time and cost to prepare and administer a competitive bidding
process.
FINANCIAL IMPACTS
The purchase price of the CAT Backhoe through National IPA Cooperative Pricing (Contract
#161534) is $107,899.28. Purchase is per the approved 18/19 budget with Water Enterprise
funds. $405,000 was budgeted and $110,000 is available.
ATTACHMENTS
1. Resolution
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RESOLUTION APPROVING PURCHASE OF CAT BACKHOE LOADER UNDER
NATIONAL IPA COOPERATIVE STATE PRICING TOTALING $107,899.28
THROUGH PETERSEN CAT AND AUTHORIZING THE CITY MANAGER TO
EXECUTE ALL DOCUMENTS NECESSARY TO COMPLETE THE PURCHASE
WHEREAS, the City of Petaluma seeks to purchase a replacement for two backhoes
with one backhoe to provide a needed maintenance platform for the Public Works and Utilities
Department; and
WHEREAS, Petaluma Municipal Code section 4.04. 100 provides an exception to City
competitive bidding for purchases of supplies and equipment made under a cooperative
purchasing program with the state, county or other public agencies; and
WHEREAS, the Petaluma Municipal Code provides that cooperative purchases joined
will have been competitively awarded, and documentation as to the advantage of the cooperative
purchase will be retained; and
WHEREAS, the City is a member of the National IPA that supports cooperative
purchasing, which allows the City the opportunity to access competitively awarded and
nationally leveraged cooperative purchasing contracts; and
WHEREAS, the lowest National Intergovernmental Purchasing Alliance cooperative
price meeting specifications for the subject backhoe was provided by Petersen CAT for
$107,899.28, including sales taxes; and
WHEREAS, this cooperative purchase program is a benefit to the City by allowing
access to competitively awarded nationally leveraged pricing at lower cost than listed by regional
suppliers while saving City staff time by avoiding the management of a public bid process; and
WHEREAS, funds in the amount of $110,000 were included and approved in the FY
18/19 budget for the purchase of the equipment.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby approves the cooperative purchase of the CAT Backhoe from Petersen CAT,
through the National IPA cooperative pricing program for $107,899.28 (including tax) and
authorizes the City Manager to execute all necessary documents to complete the purchase.
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