Title
Recommendation to Authorize the Purchase of One Compact Track Loader Consistent with Vehicle Replacement Policy in Amount Not-to-Exceed $152,562 from Peterson CAT. (Public Works 60141581)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The Alameda Recreation and Parks Department (ARPD) uses a variety of equipment to maintain the grounds at City of Alameda (City) parks. Replacement of a compact track loader is scheduled for and budgeted in the Fiscal Year (FY) 2023-24 budget. Staff recommends authorizing the replacement purchase from Peterson CAT in an amount not-to-exceed $152,562. This amount includes an approximate five percent (5%) increase for inflation as the vendor quote is only good for 30 days. If prices remain unchanged following City Council approval, the actual expenditure will be as shown in the vendor quote, Exhibit 1, in the amount of $145,297. There is no impact to the General Fund from this action.
BACKGROUND
A compact track loader is an essential piece of equipment for ARPD operations. The loader has various attachments including a fork, auger, trencher and bucket. The equipment is used by ARPD to move heavy items in the field such as concrete tables, benches, large downed trees as well as planting new trees, irrigation improvements and can help in emergency situations. The existing unit in the fleet is 27 years old and requires replacement. The City Council adopted the FY 2023-24 budget, which included funding to replace one compact track loader.
On November 5, 2019, staff brought to City Council a revised Administrative Policy and Procedure Number 48, Vehicle and Equipment Replacement Policy (Fleet Replacement Policy). In accordance with City Administrative Instruction Number 5 (Purchasing Policy), vehicles may be purchased by piggybacking on another agency’s purchase agreement or through cooperative purchasing, as further described below. The City Council must approve an award of vehicle purchases to a single vendor made through either piggybacking or cooperative purchasing in excess of a cumulative total of $75,000 in any given fiscal year.
DISCUSSION
Petersen CAT holds a Sourcewell Contract #032119-CAT. Sourcewell is a cooperative purchasing agency that solicits and awards contracts through a public competitive procurement process compliant with state statutes. The City is a participating member of Sourcewell and therefore recommends purchase of the compact track loader from Peterson CAT based on the Sourcewell contract pricing, which provides the City a 21% discount totaling $27,551. The recommended total not-to-exceed amount is $152,562, which includes an approximate five percent (5%) increase for inflation as the vendor quote is only good for 30 days. If prices remain unchanged following City Council approval, the actual expenditure will be as shown in the vendor quote, Exhibit 1.
Electric compact track loaders that meet the City’s specifications are not yet available. The recommended replacement unit is a Clean Diesel unit. Staff will continue to monitor the market and anticipates electric construction equipment to be available in 3-5 years.
ALTERNATIVES
• Authorize purchase of one compact track loader from Peterson CAT.
• Direct staff to use a different procurement method for the compact track loader.
• Do not authorize replacement of the existing unit. Due to likely downtime from costly repairs and maintenance, ARPD services may be adversely affected. Under this alternative, the appropriated budget for this purchase go back to the Vehicle Replacement Fund.
FINANCIAL IMPACT
City Council appropriated Vehicle Replacement Fund (Fund 601) for this purchase in the FY 2023-24 budget. There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
The Fleet Replacement Policy is consistent with the City’s recently adopted Climate Action and Resiliency Plan and emphasizes greenhouse gas emission reductions. The revised policy includes a focus on right-sizing the City fleet, the purchase of electric vehicles when feasible, and lowering the fleet’s greenhouse gas emissions through acquisition of low emission vehicles.
All replacements will be equipped with “Clean Diesel Technology” and will meet or exceed all current state and federal emission requirements. These “Clean Diesel” vehicle purchases confirm the City’s commitment to a green fleet. The new vehicles will cut carbon dioxide and diesel particulate matter in emissions by nearly 50% from the vehicles they replace.
RECOMMENDATION
Authorize the purchase of one Compact Track Loader consistent with Vehicle Replacement Policy in an amount not-to-exceed $152,562 from Peterson CAT.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Carlo Balboni, Fleet Supervisor
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Petersen CAT Quote