REPORT TO THE CITY COUNCIL July 20, 2017 FROM: Bruce Rudd, Interim Director Department of Transportation BY: JIM SCHAAD, Assistant Director Department of Transportation DUANE MYERS, Fleet Manager Department of Transportation/Fleet Management Division CLIFF TRAUGH, Senior Management Analyst Department of Transportation/Fleet Management Division SUBJECT ..Title Actions pertaining to awarding a purchase contract to Quinn Company for backhoe loader: 1. Award a purchase contract in the amount of $162,165.54 to Quinn Company for the purchase of one Caterpillar Inc. Model 430F2 Backhoe Loader 2. ***RESOLUTION - 7th amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 appropriating $162,200 in the Fleet Replacement fund (Requires 5 affirmative votes) ..Body RECOMMENDATION Staff recommends Council approve a purchase contract in the amount of $162,165.54 to Quinn Company for the purchase of one Caterpillar Model 430F2 backhoe loader, and approve the 7th amendment to the AAR No. 2017-165 appropriating $162,165.54 into the Department of Transportation budget for the purchase of one backhoe loader. This standard, approved purchase through another governmental entity is before Council as per the new oversight and transparency policy change which was implemented in December 2016. EXECUTIVE SUMMARY The Wastewater Management Division of the Department of Public Utilities wishes to purchase one Caterpillar, Inc., Model 430F2 backhoe loader for FY17. The Wastewater Management Division would like to increase its capabilities to maintain, repair, and construct sewer lines throughout the city system. The new backhoe, along with a 15-yard dump truck, will enable the crew to dig deeper and remove more material allowing for larger scale repairs and construction projects to be completed efficiently. This investment will allow for better quality of repairs, rate of completion, and will enable future construction projects to be completed by the City rather than outside contractors. BACKGROUND The Wastewater Management Division is responsible for the day-to-day operations of the City's sanitary sewer (collection) system. This includes customer service responses, video inspection, preventative maintenance cleaning, chemical root application, and repair the of wastewater collection system. Currently, there are over 1,500 miles of sewer main that range in size from 6 to 84 inches in diameter along with 15 sewer lift stations that service the city. Currently, the Wastewater Management Division has a repair crew that is outfitted with a Caterpillar 303CR Mini Excavator and Ford F-550 3-yard dump truck. This system of equipment limits the depth of sewer main repair to 6 feet and is not suited for new construction. The undersized dump truck limits the amount of contaminated soil the crew can haul off, requiring multiple trips per repair job. Depending on the depth and location of the repair, such as an alley or narrow street, the absence of a full-size dump truck could bring the job to a halt as there would be no suitable location to place the soils while work is being performed. With the addition of the new 15-yard dump truck currently on order, the Wastewater repair crew will not have the capacity needed to effectively operate and transport a full-size backhoe. Once the Caterpillar 430F2 backhoe loaded is placed into service, the crew's depth will increase to 16 feet, allowing for larger repairs and new sewer main construction to be completed internally rather than by outside contractors. The purchase price per unit is $162,165.54. This price includes the NJPA discount applied to City purchases, as well as sales tax at 7.975 percent. The Purchasing Division has approved this contract and recommends Council approval. 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; therefore, it is exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference is not applicable because this is a purchase through another governmental entity. FISCAL IMPACT This agreement will not impact the General Fund. Appropriated funds were not expended in FY 17 and this action will re-appropriate the funds to FY18. Attachment: Resolution Amending the AAR