REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department BY: MIGUEL RAMIREZ, Senior Management Analyst General Services Department SUBJECT ..Title Approve the award of a Cooperative Purchase Agreement to Quinn Company of Fresno, California, for the purchase of one Caterpillar 430 backhoe in the amount of $181,707 for the Department of Public Works, Street Maintenance Division ..Body RECOMMENDATION Staff recommends Council approve the award of a Cooperative Purchase Agreement to Quinn Company of Fresno, California, for the purchase of one Caterpillar 430 backhoe in the amount of $181,707 for the Department of Public Works, Street Maintenance Division. EXECUTIVE SUMMARY The Department of Public Works, Street Maintenance Division, is requesting approval to purchase one Caterpillar 430 backhoe as a replacement. The new unit will be utilized for street repairs and maintenance throughout the City of Fresno. The new backhoe will be purchased through a competitively solicited cooperative procurement process administered by Sourcewell (a State of Minnesota local government agency). BACKGROUND The Department of Public Works, Street Maintenance Division, is responsible for the maintenance, rehabilitation, and preservation of approximately 1,740 miles of City streets and boulevards. This includes critical functions such as pothole repair, street resurfacing, and sidewalk maintenance. As street surfaces deteriorate, regular maintenance and repairs are required to preserve and extend the lifespan of the City's Street infrastructure. To accomplish this, the Street Maintenance Division relies on heavy equipment such as backhoes, which are used to break up existing pavement, excavate road sections, and prepare sites for resurfacing and reconstruction. The new Caterpillar 430 backhoe 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 backhoe 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 20 years and has found them to be reliable and effective. The heavy equipment class is on a 10-year or 5,000-hour replacement schedule which has been established by the Fleet Management Division as the optimum replacement time. The backhoe identified for replacement is 20 years old, has over 7,000 hours of running time, and is currently inoperable and beyond repair. Staff recommends replacement based on age and overall condition. Construction equipment is exempt from the Advanced Clean Fleet regulation and is not required to transition to zero emission technologies. The equipment will be purchased utilizing a competitively solicited cooperative procurement process administered by Sourcewell. The total purchase price of the Caterpillar 430 backhoe is $181,707; this price includes the Sourcewell discount applied to City purchases as well as delivery and sales tax at 8.35%. 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 (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a "project" as defined by CEQA. LOCAL PREFERENCE Local preference is not applicable because this is a cooperative purchase. However, Quinn Company is a local business as defined by the FMC. FISCAL IMPACT No general funds will be used to purchase this unit. The funding to cover the purchase cost of the Caterpillar 430 backhoe has been included in the adopted FY2025 budget under the operations of the Department of Public Works, Street Maintenance Division. The source of funding for this project is the Street Maintenance Division Operating Fund, generated by Gas Tax. Attachments: Cooperative Purchase Agreement Caterpillar Contract #020223-CAT Original RFP Proof of Publication Proposal Evaluation Comment and Review