CITY COUNCIL STAFF REPORT
MEETING DATE: December 16, 2015
PREPARED BY: Cynthia Iwanaga, Management Analyst/Community Services
APPROVED BY: City Manager
Title
APPROVAL OF TRACTOR AND FLAIL MOWER PURCHASE
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt resolution approving the following actions:
1. Authorize the purchase of one tractor, flail mower and attachments for an amount not to exceed $142,509.13 from RDO Equipment; and
2. Authorize the surplus sale of the City’s current 2002 John Deere tractor and Flail Mower.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining fiscal responsibility
Enhancing public safety
REPORT NARRATIVE:
The City’s Community Services Maintenance Division uses a tractor and flail mower to conduct the majority of its weed abatement activities along City streets and trails. As the City’s current tractor, which is 13 years old, has required substantial repairs in the past two years, bids were solicited for replacement equipment. To obtain competitive pricing, the City published a legal notice in the Morgan Hill Times Requesting Proposals to Provide a Tractor and Flail Mower to the City of Morgan Hill. Staff was unable to identify any local vendors able to supply this equipment and sent the City’s solicitation to all potential nearby vendors in the Northern California area.
The bid opening was held on December 3, 2015, and the following three proposals were received:
|
Belkorp Agriculture, LLC |
$128,348.97 |
|
RDO Equipment Co. |
$142,509.13 |
|
Municipal Maintenance Equipment |
$146,513.39 |
While Belkrop Agriculture was the low bidder at $128,348.97, the flail mower included in their bid did not meet the City’s specifications and staff does not recommend that the City accept this bid. Staff recommends awarding the purchase to the low bid who met all of the City’s specifications, RDO Equipment Company, in the amount of $142,509.13.
Once the new tractor and mower are delivered, staff recommends selling the City’s current equipment via auction as is normally done with City vehicles and equipment.
COMMUNITY ENGAGEMENT: Not Applicable
ALTERNATIVE ACTIONS:
One alternative action would be to accept the lower bid from Belkorp with the less durable mower. This is not recommended as the City relies on this equipment and does not have backup equipment available when it is undergoing repairs. A second alternative action would be to not approve the purchase of a new tractor and flail mower for the Maintenance Division. This would result in the City having to rely on the existing equipment which has become unreliable.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
As part of the adopted FY 15/16 budget, the City Council approved an appropriation of $130,000 to replace the current tractor and $11,000 to replace the flail mower in Fund 790 (Equipment Replacement).
FISCAL AND RESOURCE IMPACT:
Replacement of the Maintenance Division tractor and flail mower were included in the FY 15/16 Equipment Replacement Fund budget (790.8500) for a total amount of $141,000. While the proposed purchase is $1,509 above this amount, no budget adjustment is requested at this time as the City has experienced savings on other vehicles purchased with funds appropriated in this line item.
CEQA (California Environmental Quality Act):
Not a Project
The purchase of a replacement tractor will not result in changes to the physical environment making this item exempt from CEQA.
LINKS/ATTACHMENTS:
1. Resolution
2. City Request for Proposals and Bid from RDO