SR-08-13-2013-3ICity Council Meeting: August 13, 2013
Agenda Item: z�° --1
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Purchase of Cherrington Beach Cleaner
Recommended Action
Staff recommends that the City Council award a sole source purchase order for the
purchase of a Cherrington Beach Cleaner to Powerland Equipment, Inc., a California -
based company, in the amount of $137,543.
Executive Summary
This purchase would replace an existing Cherrington Beach Cleaner that has reached
the end of its useful service life. In May 2013, the City initiated the replacement process
for a 2002 Cherrington Beach Cleaner, Unit 15752. Powerland Equipment, Inc. is the
sole distributor of Cherrington vehicles in the State of California. Staff recommends the
sole source purchase of a Cherrington Beach Cleaner, Model 5500 from Powerland
Equipment, Inc. in the amount of $137,543.
Discussion
The City replaces vehicles that have reached the end of their useful life through the
vehicle replacement program. The Cherrington Beach Cleaner vehicle to be replaced is
used by the Beach Maintenance Division on a daily basis to screen and clean beach
sand. The Cherrington Beach Cleaner has performed well in this demanding
environment and is preferred by Beach Maintenance staff to maintain efficiency in their
operation.
The 2002 Cherrington Beach Cleaner used by Beach Maintenance is due for
replacement this year. In May 2013, the vehicle required $10,000 in unexpected repairs
to keep it in service. As this was a substantial and expensive repair on a vehicle at the
end of its planned useful life, Fleet Management and Beach Maintenance staff agreed
to forego the repair, and staff arranged for the rental of a new Cherrington Beach
1
Cleaner, Model 5500 from Powerland Equipment, Inc. for a three -month period in the
amount of $43,920 in order to provide a replacement vehicle during the peak summer
season. The purchase price for a new Cherrington Beach Cleaner, Model 5500 is
$137,543 including tax and shipping. Powerland Equipment, Inc. has agreed to apply
the total rental expense of $43,920 as a credit towards the purchase of the new vehicle,
for a net cost of $93,623.
This purchase is exempt from the City's Reduced - Emissions Fuels Policy because off -
road equipment of this type is not available in alternate fuels. The Cherrington Beach
Cleaner's diesel powered engine complies with all air quality regulations including the
California Air Resources Board's emissions requirements.
Vendor Selection
In May 2013, the City researched several beach cleaning equipment types as possible
replacements for the 2002 Cherrington Beach Cleaner, self - propelled unit. Staff found
two vendors that produce self - propelled units; Cherrington, Inc. and Kassbohrer
Gelandefahrzeug. The City owns a beach cleaner unit from each manufacturer. The
Cherrington unit has proven to be more reliable for collecting large -scale debris than the
Beach Tech Marina unit from Kassbohrer Gelandefahrzeug. The Cherrington unit is
superior for its exclusive "lift and screen" beach cleaning method, single screen
oscillation system, wider screen assembly, and zero -turn radius allowing for more of the
beach area to be cleaned in less time and with better maneuverability. This purchase
meets the criteria for an exception to competitive bidding per SMMC 2.24.080, section
A, as Cherrington Enterprises, Inc. is the sole manufacturer of the Cherrington Beach
Cleaner 5500 in the United States and Powerland Equipment, Inc. is the sole distributor
and servicing agent in California.
On May 29, 2013, the City received a quote from Powerland Equipment, Inc. for the
rental of a new Cherrington Beach Cleaner 5500 to replace the 2002 Cherrington Beach
Cleaner, with an option to purchase. In order to avoid a lapse in beach cleaning
services during the summer months, the City agreed to rent a replacement unit until
2
Council approval for the purchase could be attained. This sole source purchase is
necessary in order to keep the equipment uniform, standard, and reduce maintenance
costs. Purchasing the equipment directly from Powerland Equipment, Inc. allows for the
rental fees of $43,920 to be applied towards the purchase price of the new unit.
Financial Impacts & Budget Actions
The purchase order to be awarded to Powerland Equipment, Inc. is for an amount not to
exceed $137,543. Funds are available in the FY2013 -14 Capital Improvement Program
budget in account C540167.589200. The purchase order will be charged to account
C 540167.589200.905 33 W .
Prepared by: Ryan Kraemer, Senior Administrative Analyst
Approved:
Ld
Martin Pastucha
Director of Public Works
3
Forwarded to Council:
J 4
Rod Gould
City Manager