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SR-10-02-2012-3KCity Council Meeting: October 2, 2012 Agenda Item: 3K To: Mayor and City Council From: Gigi Decavalles- Hughes, Director of Finance Subject: Purchase of Agricultural Tractor - Revised Recommended Action Staff recommends that the City Council award Bid #3088 for the purchase and delivery of one new agricultural tractor to John Deere, Inc., a North Carolina -based company in the amount of $128,518. Executive Summary The agricultural tractor, manufactured by John Deere, would be used by Beach Maintenance Division personnel to clean, maintain and groom the sand at the beach. The John Deere tractors previously used when cleaning the sand at the beach have been durable and reliable through all seasons. Following a formal bid process, John Deere, Inc. is recommended to furnish one new agricultural tractor for a not to exceed amount of $128,518. This bid was previously awarded to Cal -Coast Machinery, Inc. at the regularly - scheduled August 14, 2012 City Council meeting. However, in order for the City to receive the discounted government agency price reflected in the bid, payment must be made directly to John Deere, Inc. Cal -Coast Machinery, Inc. will serve as the delivering dealer. Action taken on this revised report will render the prior staff report obsolete. Discussion The agricultural tractor would be used by Beach Maintenance Division personnel to clean, maintain, and groom the sand at the beach. This equipment is scheduled for replacement every ten years based on the City's vehicle replacement program. The new tractor will replace existing equipment that has reached the end of its 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. Agricultural tractors of this type are not available in alternative fuels, but this diesel powered tractor's engine 1 meets the California Air Resources Board's Interim Tier 4 emissions standards and can operate on B20 biodiesel. This bid was previously awarded to Cal -Coast Machinery, Inc. at the regularly- scheduled Auqust 14, 2012 City Council meeting. However, in order for the City to receive the discounted government agency price reflected in the bid, payment must be made directly to John Deere, Inc. Cal -Coast Machinery, Inc. will serve as the delivering dealer. Action taken on this revised report will render the prior staff report obsolete. Vendor Selection In February, 2012, the City published Notices Inviting Bids to furnish and deliver one agricultural tractor 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. Three bids were received and publicly opened on March 12, 2012 per Attachment A. Bids were evaluated based on the criteria in SMMC 2.24.072, including price, ability to deliver, quality of product, and compliance with bid specifications. Quinn Company, the lowest bidder, bid an Agco Challenger tractor which does not meet the bid specifications for rear axle width. They also were not able to provide a demonstration tractor to allow City staff to determine if it would negotiate the sand as required. John Deere, Inc., a North Carolina -based company bid a John Deere tractor which meets specifications and is consistent with other tractors used in Beach Maintenance. The John Deere tractors previously used when cleaning the sand at the beach have been durable and reliable through all seasons. Based on these criteria, John Deere, Inc. is recommended as the best bidder to provide an Agricultural Tractor in accordance with the City specification with Cal -Coast Machinery, Inc. acting as the local delivering dealer. This bid was previously awarded to Cal -Coast Machinery, Inc. at the regularly - scheduled August 14, 2012 City Council meeting. However, in order for the City to receive the discounted government agency price reflected in the bid, payment must be made directly to John Deere, Inca Cal -Coast Machinery, Inc. will serve as the delivering dealer. 2 Financial Impacts & Budget Actions The purchase order to be awarded to John Deere, Inc. is $128,518. Funds are available in the FY 2012 -13 budget in division 54459. The purchase order will be charged to account C540167.589200. Prepared by: Monica Diaz, Buyer Approved: Gigf Decavalles -Hug Director of Finance Attachments: Attachment A — Pricing 3 Forwarded to Council: Rod Gould City Manager ATTACHMENT A F3088 - AGRICULTURAL TRACTOR BID CLOSING DATE: 3/12/2012 BID DESCRIPTION: FURNISH AND DELIVER ONE (1) NEW AND UNUSED AGRICULTURAL TRACTOR AS REQUIRED BY FLEET MANAGEMENT DIVISION. John Deere, Inc. DIAMOND EQUIPMENT QUINN COMPANY OXNARD, CA OXNARD, CA CITY OF INDUSTRY, CA YEAR 2012 2011 2011 VEHICLE COST $ 117,636.09 $ 119,450.00 $ 109,943.00 SUBTOTAL $ 117,636.09 $ 119,450.00 $ 109,943.00 SALES TAX (9.25%) $ 10,881.34 $ 11,049.13 $ 10,169.73 WARRANTY $ - $ _ $ TIRE FEE $ $ _ $ DELIVERY $ $ _ $ OTHER FEES $ $ _ $ _ GRAND TOTAL $ 128,517.43 $ 130,499.13 $ 120,112.73 GUARANTEED DELIVERY DATE COMMENTS 9/21/2012 5/30/2012 180 DAYS ARO