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
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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.
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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
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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