REPORT TO THE CITY COUNCIL May 16, 2019 FROM: GREGORY A. BARFIELD, Director Department of Transportation BY: BRIAN BARR, Assistant Director Department of Transportation DUANE MYERS, Fleet Manager Department of Transportation, Municipal Fleet Division CLIFF TRAUGH, Senior Management Analyst Department of Transportation, Municipal Fleet Division SUBJECT ..Title Approve the award of a cooperative purchase agreement to Quinn Company of Fresno, California, for the purchase of four Caterpillar 430F2 backhoes in the amount of $560,544 ..Body RECOMMENDATION Staff recommends Council approve the award of a cooperative purchase agreement to Quinn Company of Fresno, California, for the purchase of four Caterpillar 430F2 backhoes in the amount of $560,544. EXECUTIVE SUMMARY The Department of Public Works (DPW) and Department of Public Utilities (DPU) are requesting approval to purchase four Caterpillar 430F2 backhoes in the amount of $560,544. The new backhoes will be used for construction and maintenance throughout the city. Of the four backhoes, three will be purchased as additions for DPW and one will be purchased as a replacement for DPU. The equipment will be purchased through a competitively solicited cooperative procurement process administered by Sourcewell, formerly the National Joint Powers Alliance (NJPA). BACKGROUND DPW, Street Maintenance Division provides service to the residents of Fresno through the construction and maintenance of roadways. This work is performed with medium-size backhoes utilized to excavate old roadway and move material during the paving and patching process. As new funding sources for street maintenance have become available, the Streets Maintenance Division has recognized a need to grow its backhoe fleet to meet the needs of new and future projects. DPU, Wastewater Management Division provides service to the residents of Fresno through the collection and treatment of wastewater produced by the city. The Wastewater Treatment Plant operates 1,750 acres of percolation ponds requiring continuous maintenance and construction. This work is performed with a medium-size backhoe, which has reached the end of its useful life. The unit identified for replacement is 13 years old and is three generations behind the current emissions standard. The new Caterpillar 430F2 backhoes will be built to a specification similar to existing units, updated with the latest technology to increase fuel efficiency, and continue to meet the Tier 4 final emissions standard. The backhoes will feature a newly-developed hydraulic system that allows full operation at a lower RPM, increasing fuel efficiency across all aspects of operation. The City of Fresno has been using Caterpillar 430 series backhoes for more than 17 years and has found them to be reliable and effective. The Department of Transportation, Municipal Fleet Division recommends this purchase based on the needs of the two divisions and condition of the equipment identified for replacement. The backhoes will be purchased following a competitively solicited cooperative procurement process administered by Sourcewell, formerly NJPA. Sourcewell utilizes a rigorous request for proposal (RFP), which includes development of solicitation document and proposal evaluation criteria, public advertisement, a five- to six-week response period and a pre-proposal conference. Upon closing of the response period, a committee evaluates proposals to determine the responsiveness against the pre-determined RFP evaluation criteria. Multi-year contracts are awarded based on the evaluation scores. The purchase price for each unit is $140,136. This price includes the Sourcewell, cooperative purchasing discount applied to City purchases, as well as sales tax at 7.975 percent. The Purchasing Division has approved this contract and recommends Council to approve. The City Attorney has reviewed and approved to form. ENVIRONMENTAL FINDING By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a "project." LOCAL PREFERENCE Local preference is not applicable because these backhoes will be purchased using a cooperative purchase agreement. FISCAL IMPACT No general funds will be used to purchase these items. The funding to cover the purchase cost of the Caterpillar 430F2 backhoes has been included in the FY19 adopted budget under the operations of the Streets Division and Wastewater Management Division. Attached is a list of funding sources for the equipment included in this award. Attachments: Acceptance and Award CAT Contract Combined Ads Comment and Review Evaluation RFP 5th Year Extension Funding Sources