The URL can be used to link to this page

Home My WebLink AboutE-14 Staff Report - Approval Backhoe PurchaseCONSENT ITEM E-14 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SEGIO GONZALEZ, CITY MANAGER FROM: ROBERT DELGADILLO, INTERIM DIRECTOR OF PUBLIC WORKS/CITY ENGINEER DATE: AUGUST 19, 2019 SUBJECT: APPROVE THE PURCHASE OF A BACKHOE/LOADER FROM SONSRAY MACHINERY LLC SUMMARY: The Public Works Department currently utilizes a 2002 John Deere backhoe/loader for various street and sewer maintenance activities. This piece of equipment requires frequent maintenance due to age and prohibits efficiency due to size. Replacement of this backhoe will be utilized more efficiently and will improve worker safety. This action waives the competitive bid process and approves the purchase of a new Case 590SN backhoe/loader with breaker and bucket attachments, 3-year standard maintenance package, and a 5 year extended warranty. RECOMMENDATION: Staff recommends the City Council take the following actions: 1)Waive purchasing procedures as authorized under Azusa Municipal Code Section 2.539 and approve the purchase of a backhoe in the amount not-to-exceed $158,506.90 from Sonsray Machinery LLC. 2)Authorize the City Manager to execute a purchase/service agreement with Sonsray Machinery LLC for the purchase of the Case 590SN Backhoe/Loader and proposed attachments. DISCUSSION: The Public Works Department currently utilizes one backhoe for various street and sewer maintenance activities. The current backhoe/loader is a 2002 John Deere model and is too small for efficient use, especially during emergency repair work. The Case 590SN Backhoe/Loader comes with a 93-inch loader bucket, 24-inch and 18-inch buckets, and a 1,000 ft-lb breaker. The backhoe also utilizes a APPROVED CITY COUNCIL 8/19/2019 Purchase John Deere backhoe/loader August 19, 2019 Page 2 hydraulic bucket release system which will increase efficiency. Purchase of this backhoe was approved in the FY 19-20 Capital Outlay budget. The City’s purchasing procedures allow for the acquisition of equivalent equipment through a process of competitive bidding by using other municipalities or through joint powers programs. In this case, Sonsray Machinery LLC was able to provide the City with a Sourcewell Contract (#032515) discount of approximately $65,671 discount off of the base price. As a result, the City can achieve the benefits of a competitive bid without the additional costs and delays associated with the standard procurement process. Sonsray Machinery LLC will also be providing a 5-year/ 4,000 working hour extended warranty and a 3-year/3,000 working hour preventative maintenance plan (includes parts, lubricants labor, travel, waste disposal, and supplies). FISCAL IMPACT: Funding in the amount of $177,905 for the purchase of the Case 590SN Backhoe was approved in the FY 19/20 Adopted Capital Outlay Budget in the Sewer Fund account 34-55-665-000-7140. The purchase of a backhoe will not exceed $158,506.90. Prepared by: Reviewed and Approved by: Robert Delgadillo, P.E. Sergio Gonzalez Interim Director of Public Works/ City Manager City Engineer Fiscal Impact Reviewed by: Talika M. Johnson Director of Finance Attachments: 1. Sonsray Machinery LLC Equipment Quote/Sales Order 2. Signature Service Preventative Maintenance Plan Agreement 3. Case Construction Backhoe Specifications City of Azusa 03 - SANTA FE SPRING 809 N. Angeleno Azusa 07/29/2019 16:53:36 (O) 1 CA 91702 05 AZUSA002 6268125244 Q01955 CITY OF AZUSA Delivery TO FOLLOW 213 E. FOOTHILL BLVD. AZUSA CA 91702 Tony Lucia 241 Attention: Richard Gardea Description **QUOTE**EXPIRY DATE: 07/31/2019 Amount Stock #: 14274963 Serial #: NJC756277 111816.00 NEW CASE EQUIPMENT 590SN BACKHOE SOURCEWELL CONTRACT #032515 BASE LIST PRICE $177,487 -37% DISCOUNT = $111,816 Net 110 HP Tier 4 Final Cert Diesel Eng / POWERSHIFT TRANS FRONT WHEELS -14x17.5, 10PR / REAR WHEELS -21Lx24 10PR EXTENDAHOE W/ GRIPPER TEETH / PILOT CONTROLS W/POWER LIFT HYDRAULIC BUCKET RELEASE / FLIP OVER STABILIZER PADS 93" 4x1 LOADER BUCKET W/BOLT ON EDGE / HEAVY FRT CTR WEIGHT ENCL DLX CAB W/HEAT & A/C SUN VISOR 3" BELT SEAT SUSPENSION 4WD DRIVE SHAFT GUARD / BATTERY DISCONNECT/JUMP START LED LIGHTS / LOCKING TOOL BOX, DEF & FUEL COVERS AUTO RIDE CONTROL / AUX HYD UNI-DIRECTION AMBER BEACON / AM/FM BLUETOOTH RADIO / 24" BUCKET 3 YR SITE WATCH TELEMATICS SERVICE & SUBSCRIPTION 60 MO / 4K HOUR PREMIER WARRANTY ZERO $ DEDUCTIBLE 3 YR / 3K HOURS FACTORY RECOMMENDED MAINTENANCE SERVICE Stock #: ? Serial #: 19804.00 ** ADDITIONAL ITEMS ** PRE-DELIVERY PREP $1900 / INBOUND FREIGHT $2375 STEEL SURCHARGE $2677 / FILL W/ DIESEL $160 <$1300 DEMO CR> 18" Bucket $1050 / 1,000 ft lb Breaker $12,942 Miscellaneous Charges/Credits ============================= PROCESSING FEES Qty: 1 Price: 399.00 399.00 EXTENDED WARRANTY 1 5350.00 5350.00 CA TIRE FEE 4 1.75 7.00 EQUIPMENT DELIVERY/PU 1 500.00 500.00 PREVENTATIVE MAINTENANCE 1 8127.00 8127.00 Subtotal: 146003.00 CA STATE 7.25%: 9542.45 City of Azusa 03 - SANTA FE SPRING 809 N. Angeleno Azusa 07/29/2019 16:53:36 (O) 2 CA 91702 05 AZUSA002 6268125244 Q01955 CITY OF AZUSA Delivery TO FOLLOW 213 E. FOOTHILL BLVD. AZUSA CA 91702 Tony Lucia 241 Attention: Richard Gardea Description **QUOTE**EXPIRY DATE: 07/31/2019 Amount LOS ANGELES CO 2.25%: 2961.45 Authorization: _________________________ Quote Total: 158506.90 CALIFORNIA NEVADA OREGON WASHINGTON SERVICE QUOTE - Case Agreement Dealer Id: Agreement Number : Agreement Date : Customer Information Name Address City, State Zip Country Phone No Fax United States Dealer Information Name Address City, State Zip Country Phone No Fax United States Model Serial No. Current Machine Hours Service Term (Months) Maintenance Term (Hours) Maintenance Cost (Per Hour)($) Maintenance Agreement Cost ($) Travel Other Services Total Maintenance Cost Total Parts & Service Tax Total Cost ($): ($): ($): ($): ($): ($): ($):Payment Type: I understand and agree to the terms and conditions of this agreement Name Signature Date Customer Name Signature Date Dealer Special Notes Page 1 of 2 SERVICE Signature P R E V E N T I V E M A I N T E N A N C E P L A N We Move Mountains 819 6665 7/31/2019 City of Azusa Sonsray Machinery 809 N. Angeleno 10950 S. Norwalk Blvd Azusa, CA Santa Fe Springs, CA 91702 90670 562-903-7377 562-903-7301 590SN Tier 4B (final) TBD 25 36 3,000 $ 2.71 $ 8,127.00 $ 0.00 $ 8,127.00 $8,127.00 - Travel to site to be within 30 Mile radius of Sonsray shop. Additional travel to be charged @ current field service rate. The owner or representative, whose signature is on the "customer" line above, authorizes the named dealer to perform the specified maintenance functions as prescribed in the manufacturer's periodic maintenance schedule on the machines listed above. The term of the contract is specified above in hours and months of use. Events include all parts, lubricants, filters, labor, travel (as specified above,) waste disposal, and supplies required to perform the scheduled maintenance on the above specified machine(s), for the total term hours listed above. The customer is responsible for daily, routine maintenance prior to the maintenance intervals covered by this contract, use of manufacturer approved lubrication and maintenance products, proper application and operation of machines. The customer will receive machine inspection results feedback after the maintenance event performance. If selected, the customer will receive machine inspection and fluid analysis results feedback after the maintenance event performance. The customer is responsible for repairs resulting from wear, abuse or accidental damage that is not covered by insurance or the manufacturer's warranty (basic or purchased.) Prior to each service, the customer is responsible to contact the dealer to schedule the maintenance at the corresponding hour interval selected above (unless a Fleet Management System is installed.) The customer must make the equipment scheduled for service available to the dealer at a mutually agreeable time and location. Additional charges will be incurred by the equipment owner if the machine is not available for service or has been moved outside the travel coverage of this contract. Contract price includes the Fleet Management System unless otherwise specified. Fleet Management System tracks hours used which enables automatic machine locating, alarms, and maintenance history 24 hours a day via a secure internet website. Trade-in: If the customer chooses to trade machine/s covered by this contract to the issuing dealer, the remaining funds and terms may be: a) transferred to the subsequent owner. b) applied to the machine/s traded for. c) applied to a new planned maintenance contract. (d) negotiated with servicing dealer for credit toward the purchase of parts and service (must be approved by CNH Administrator). There will be no cash refunds. All liens owed to CNH Capital must be satisfied before the funds may be reallocated. The term in months is the estimation of how long the contract will last given the estimated hours of use per year. If the events are not consumed within the estimated term (in months) the funds will revert to the selling dealer at the customer's option to be used for dealer provided parts and/or service. There will be a twelve month grace period for performance after the term ends for the customer to use the events or funds. If the customer fails to utilize the funds/events by the end of the grace period, the funds will be forfeited. All liens must be satisfied on finance contract terms prior to reallocation of contract funds. There will be no refunds. SERVICE QUOTE - Case Agreement Dealer Id : Agreement Number : Agreement Date : Terms & Conditions Page 2 of 2 Customer Initials Dealer Initials CALIFORNIA NEVADA OREGON WASHINGTON 819 6665 7/31/2019