HomeMy WebLinkAbout2013-02-26 - AGENDA REPORTS - 444K LOADER PURCHASE (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item: 3
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by
February 26, 2013
Joseph Oerum
AWARD PURCHASE OF JOHN DEERE 444K LOADER
City Manager's Office
RECOMMENDED ACTION
City Council approve the purchase of a John Deere 444K Loader from Coastline Equipment
using California Multiple Awards Schedule (CMAS) contract 44-08-23-0023A in an amount not
to exceed $135,375.82. Approve increase to expenditure budget account 14504-5201.002 Street
Maintenance by $5,376, to account for the additional funding needed to complete the purchase,
and increase Gas Tax Sales of Property & Equipment account 230-4621.006 by $13,500 to
account for the revenue generated from the sale of the existing Dresser, 520B Wheel Loader.
BACKGROUND
City Council authorized the replacement of a Dresser, 520B Wheel Loader during the Fiscal Year
2012-2013 budget process. The Dresser, 520B Wheel Loader is used by the Streets Division to
move large quantities of materials. The current Wheel Loader, a Dresser 520B, is 22 -years -old
and meets the City's criteria for replacement of equipment older than 12 years. The cost to
maintain this Wheel Loader has steadily increased due to its age and replacement parts arc
becoming more difficult to procure. Staff has determined that a John Deere 444K loader will
serve as an equivalent replacement.
On July 11, 1995, the City Council approved the use of "piggyback" purchasing. This process
permits the City to place orders against a competitively awarded, existing public agency contract.
The California Multiple Award Schedules (CMAS) contract # 4-08-23-0023A was competitively
solicited and awarded on June 19, 2008, allowing the City of Santa Clarita to take advantage of
an existing process.
Using the CMAS cooperative agreement, the list price for the John Deere 444K Wheel Loader
T /
was $186,176, and after the 33.29% CMAS discount ($50,800.18), the sales price with tax comes
to $135,375.82.
Staff evaluated several methods to determine cost effectiveness besides the CMAS contract,
which currently saves the City 33% on equipment over commercial pricing. In addition to
CMAS, staff evaluated other cooperative agreements (piggyback) such as National Joint Powers
Alliance (NJPA) and Western States Contracting Alliance_(WSCA) neither of which provided as
much of a savings as CMAS. Staff also reviewed commercial list pricing for this type of wheel
loader from sources such as Caterpillar, John Deere, and Case, and found pricing ranging from
$170,000 to $190,000 for comparable equipment. There are no local vendors that provide this
equipment on a cooperative purchase agreement. After extensive research, the CMAS contract
through Coastline Equipment provides the most competitive pricing and highest quality
equipment to the City thereby offering the best value.
ALTERNATIVE ACTIONS
Other actions as determined by the City Council.
FISCAL IMPACT
Funds for this purchase were appropriated during the Fiscal Year 2012-2013 budget process in
the amount of $130,000 in Account 14504-5201.002. An increase to the expenditure budget
account 14504-5201.002 Street Maintenance by $5,376 will account for the additional funding
needed to complete the purchase.