rCITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 18-061, Water Utilities 2018 Case 580 Super N WT Loader Backhoe, to McCann for an amount not to exceed $120,500.
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DEPARTMENT: Water Utilities
SUBMITTED BY: James Holzapfel, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
A Water Utilities loader backhoe was reviewed by the Fleet Economic Committee and Fleet Services Project Manager and approved for replacement in the 2018 budget. Vehicles and equipment are evaluated for replacement based on four criteria: age, usage, condition and repair costs. A vehicle must receive a score of 23.0 or greater to be recommended for replacement. The vehicle exceeds the minimum score as shown in the table below.
|
Unit # |
Year |
Amortized Life Cycle |
Replacement Age |
Minimum Criteria |
Scored Criteria |
Hour Guidelines |
Usage Hours |
Repair Costs |
|
758 |
1991 |
10 years |
26.6 years |
23.0 |
46.53 |
6,000 |
3,418 |
$47,835.67 |
DISCUSSION:
The Water Utilities and Department of Public Works - Fleet Services Division recommend the purchase of one 2018 Case 580 Super N WT Loader Backhoe. The new Case 580 Super will maintain conformity in the City’s fleet, which minimizes operational, service, maintenance, repair, safety and training costs including minimizing costs associated with parts inventory. The Case loader backhoe is available on the National Joint Powers Alliance (NJPA) Cooperative, an approved cooperative, through McCann, Contract No. 032515-CNH.
Using the City’s specifications, McCann has quoted the Case 580 Super loader backhoe in the amount of $128,000. The award amount also includes a trade-in of the current Ford 555C loader backhoe in the amount of $7,500 for a net cost of $120,500. The Case 580 Super will be delivered in approximately 100 days.
|
Case 580 Super |
Less NJPA Discount |
Less Trade-In |
Net Price |
|
$218,596 |
$90,596 |
$7,500 |
$120,500 |
FISCAL IMPACT:
CIP #: N/A
The 2018 Case 580 Super Loader/Backhoe is expensed to the vehicles and equipment account below. A total of $130,000 has been budgeted for the replacement of Unit 758 in 2018. The requested award of $120,500 is within the budgeted amount for this expense.
|
Account Number |
Fund Description |
Total Budget Amount |
|
41101500-551505 |
Water Utilities Fund |
$371,000 |