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SR-08-28-2012-3ICity Council Meeting: August 28, 2012 Agenda Item: 3-1 To: Mayor and City Council From: Gigi Decavalles- Hughes, Director of Finance Subject: Purchase of Backhoe Loaders Recommended Action Staff recommends that the City Council award Bid #3089 for the purchase and delivery of two new backhoe loaders to Coastline Equipment, a California -based company, in the amount of $255,088. Executive Summary The Public Works Department utilizes backhoe loaders to install, repair, and replace underground portions of the City's water system. The loaders are replaced every 10 years based on the City's vehicle replacement program. These new loaders would replace existing loaders that have reached the end of their useful life. Following a competitive bid, Coastline Equipment is recommended as the best bidder for the purchase and delivery of two new backhoe loaders in an amount of $255,088. Discussion The backhoe loaders would be used by the Public Works Department to perform tasks such as installations, repairs, and replacements of underground portions of the City's water system. These loaders are replacing existing loaders that have reached the end of their useful life. As referenced in the Information Item that was submitted to the City Council on January 15, 2008, two goals of the Reduced - Emissions Fuels Policy for Vehicle Purchases are to reduce emissions and to reduce the use of petroleum fuels. Off -road equipment of this type is not available in alternate fuels, but these diesel powered engines comply with the California Air Resources Board's emissions requirements and can operate on B20 biodiesel. 1 Vendor Selection In February 2012, the City published Notices Inviting Bids to furnish and deliver two backhoe loaders as required by the Fleet Management Division in accordance with City specifications. The bid was posted on the City's on -line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Four bids were received and publicly opened on March 14, 2012 per Attachment A. Bids were evaluated based on price, product availability, selection, and compliance with City specifications. Coastline Equipment is recommended as the best bidder as they are the lowest price bidder that is able to meet all of the specifications, including the 7.3 inch bid depth and offer a side shift backhoe design with up /down stabilizers as specified. The side shift backhoe allows better positioning and control of the backhoe for digging in tight quarters. Financial Impacts & Budget Actions The purchase order to be awarded to Coastline Equipment is $255,088. Funds are available in the Fleet Vehicle Replacement Program FY 2012 -13 budget in division 54459. The purchase order will be charged to account C540167.589200. Prepared by: Monica Diaz, Buyer Approved: 11`--�' Gigi`DecavaIles -"he Director of Finance Attachments: Attachment A — Pricing 7 Forwarded to Council: Rod Gould City Manager ATTACHMENTA Bid Results RFQ# 3089 TITLE: FURNISH AND DELIVER TWO (2) FOUR WHEEL DRIVE BACKHOE LOADERS AS REQUESTED BY FLEET MANAGEMENT Vendor Purchasing Section QUINN COMPANY 1717 4th St, Suite 250 -' Santa Monica, CA 90401 CITY OF INDUSTRY, CA Tel: 310458 -8281 CITY OF INDUSTRY, CA Fax: 310393 -6142 soo6o no�ma" 2012 CATERPILLAR 420F ATTACHMENTA Bid Results RFQ# 3089 TITLE: FURNISH AND DELIVER TWO (2) FOUR WHEEL DRIVE BACKHOE LOADERS AS REQUESTED BY FLEET MANAGEMENT Vendor BRAGG INVESTMENTS CO dba COASTLINE EQUIPMENT QUINN COMPANY SCOTT EQUIPMENT INC YALE /CHASE EQUIPMENT & SERVICES LONG BEACH, CA CITY OF INDUSTRY, CA FONTANA, CA CITY OF INDUSTRY, CA YEAR AND MANUFACTURER 2012 JOHN DEERE 3155k 2012 CATERPILLAR 420F 2012 NEW HOLLAND B95C 2012 JCB / 3CX SIDE SHIFT Description Qty Unit Price Extended Cost Unit Price Extended Cost Unit Price Extended Cost Unit Price Extended Cost BACKHOE LOADER 2 $ 116,745.00 $ 233,490.00 $ 125,434.00 $ 250,868.00 $ 104,014.00 $ 208,028.00 $ 95,589.00 $ 191,178.00 $ $ $ $ Subtotal $ 233,490.00 $ 250,868.00 $ 208,028.00 $ 191,178.00 Sales tax (9.25%) $ 21,597.83 $ 23,205.29 $ 19,242.59 $ 17,683.97 Wananty 2 $ - $ - $ 425.00 $ 850.00 $ - Tire Fee 2 $ _ $ _ $ _ $ - Delivery 2 $ _ $ - $ _ $ Training 2 $ $ _ $ - $ - Grand Total $ 255,087.83 1 $ 274,073.29 $ 228,120.59 $ 208,861.97 Page 1 of 1