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Home My WebLink AboutAgenda Report - June 21, 1995 (53)00 G` � OF (CITY OF LODE COUNCIL COMMUNICATION cqc� w�'�P �AGENDATITLE: Purchase of 1994 Articulating Wheel Loader for Street Division ($69,440) MEETING DATE: June 21, 1995 PREPARED BY: Public Works Director RECOMMENDED ACTION: That the City Council adopt the attached resolution to purchase a 1994 Demonstrator 1.3 Cubic Yard Articulating Wheel Loader for the Street Division of the Public Works Department from Reed Equipment Co., Stockton, California, in the amount of $71,440. BACKGROUND INFORMATION: Funds to purchase an Articulating Wheel Loader were approved in the attached Special Allocation. This Special Allocation gives the history of the replacement requests related to this unit. Staff contacted four vendors by telephone and requested written bids for either a new 1995 unit or a demonstrator/used 1994 unit. Only three of the four vendors submitted bids and only one vendor has a demonstrator/used 1994 unit available for sale. The attached bid tabulation itemizes the following bids: Reed Equipment, Stockton $71,439.59 Barnes Tractor & Equipment, Fernbridge $87,573.81 Reed Equipment, Stockton $88,355.00 Empire Equipment, Sacramento $93,096.00 The lowest bid- from Reed Equipment,is for a John Deere 244E Articulating Wheel Loader 1994 Demonstrator Unit with approximately 65 hours logged. This demonstrator unit comes with a full factory warranty and is available for immediate delivery. All other bids listed, including Reed Equipment's second bid, are for new 1995 units. Based on receiving a full factory warranty together with the savings of $16,000, it is recommended that the City purchase the 1994 demonstrator unit. With the summer season approaching, it is important that this unit be replaced as soon as possible. If we wanted the 1995 unit, we would also have to go through formal bidding. This Loader replaces the Street Division Tractor Loader Unit No. 04040. The trade-in value of Unit No. 04040 is $2,000. Reed Equipment has deducted the trade-in value from their bid. Total purchase price will be $69,439.59. FUNDING: Originally Budgeted: Budgeted Fund: Current Appropriation Total Bid: Prepared by George Bradley, Street Superintendent JLRlGMBldsg I Attach ments Special Allocation Equipment Replacement $75,000.00 $69,439.59 CJa L. Ronsko b is Works Director cc: City Attorney Purchasing Officer Building and Equipment Maintenance Superintendent Equipment Maintenance Supervisor Street Superintendent APPROVED: THOMAS A. PETERSON recycled paper City Manager JASTREETSIWHLOADER.DOC 6/8/95 CC -1 New units list around $80,000, not including discounts to government agencies. Purchasing a current year demonstrator unit would reduce the cost between $6,000 to $10,000. Demo units are available for immediate delivery and usually come with full factory warranty. Unit 04040 will be traded in with this purchase, howl trade-in value was applied in to insure sufficient funding. Date of Council Current Budget Contingent Fund Capital Outlay Reserve Utility Outlay Reserve more space, use Amount Approved City Manager >t FUND OR ACCOUNT TO BE CHARGED $ Prior Year Reserve $ General Fund Surplus $ Reimbursable Account $ Other. (Specify) a� Dixon Flynn, Finance Director $ S 3 12.0 — 69.0 $- Account Num r CSC.. Thomas A. Peterson, City Manager 44p gg- F. " r. !{' ----------------------------------------------------- Submit this form in duplicate to the Finance Director. Distribution after approval will be as follows f1) Griginating Department 2) Finance Department JARNANC EISPALLOWALLO08. DOC JUN -11995 f.: `fY C.;I F !'-0 D 1' f.� 4 CITY OF LODI�� SPECIAL ALLOCATION REQUEST •'s, . `"`�� •TO: FINANCE DIRECTOR CITY MANAGER DATE: April 25, 1995 • FROM: PUBLIC WORKS DIRECTOR ACCOUNT NUMBER: /� ,a� 0rrJJ ��7pp-5'O+D d (Wl)-000.00-t)00 Request is made for funds not included in the current budget for the replacement purchase of a Tractor Loader for the Street Division. PROJECT DESCRIPTION AND JUSTIFICATION Street Division requests funds to replace Tractor Loader No. 04040. ESTIMATED COST $75,000 This fully -depreciated 1982 Case 580 C Unit has an hour meter reading of 3,443.0 hours and is fully depreciated. This unit is used on a daily basis. This unit was purchased for $16,465 and has accumulated repair costs of $49,030. It is now in need of a complete overhaul, estimated to cost a minimum of $20,000. It is currently out of service. Replacement unit has been requested in the last two budget cycles. Budget restrictions mandated postponement of a replacement unit until Unit No. 04040 was beyond reasonable repair. ` 4Z%& .cam 93.9a of 44 -9s ..�.-"rfdA , . This size tractor is being phased out of the industry and all new models have been downsized. Street Division demands necessitate an upgrade in size. This upgrade would be a four-wheel drive with articulating steering, and a one -yard minimum 4 - in -1 bucket. This allows for increased maneuverability and increased productivity due primarily to 25% increase in bucket size. New units list around $80,000, not including discounts to government agencies. Purchasing a current year demonstrator unit would reduce the cost between $6,000 to $10,000. Demo units are available for immediate delivery and usually come with full factory warranty. Unit 04040 will be traded in with this purchase, howl trade-in value was applied in to insure sufficient funding. Date of Council Current Budget Contingent Fund Capital Outlay Reserve Utility Outlay Reserve more space, use Amount Approved City Manager >t FUND OR ACCOUNT TO BE CHARGED $ Prior Year Reserve $ General Fund Surplus $ Reimbursable Account $ Other. (Specify) a� Dixon Flynn, Finance Director $ S 3 12.0 — 69.0 $- Account Num r CSC.. Thomas A. Peterson, City Manager 44p gg- F. " r. !{' ----------------------------------------------------- Submit this form in duplicate to the Finance Director. Distribution after approval will be as follows f1) Griginating Department 2) Finance Department JARNANC EISPALLOWALLO08. DOC JUN -11995 f.: `fY C.;I F !'-0 D 1' f.� Bid Tabulation John Deere 244E Articulating Wheel Loader New 1995 Unit or Demonstrator/Used 1994 Unit Reed Eqpt. Co., Stockton Unit $ 66,301.25 Tax $ 5,138.35 Total $ 71,439.60 1994 Demo Unit Barnes Tractor & Eqpt. Co., Fernbridge Unit $ 81,275.00 Tax $ 6,298.81 Total $ 87,573.81 New 1995 Unit Reed Eqpt. Co., Stockton Unit $ 82,000.00 Tax $ 6,355.00 Total $ 88,355.00 New 1995 Unit Empire Eqpt. Co., Sacramento Unit $ 86,400.00 Tax $ 6,696.00 Total $ 93,096.00 New 1995 Unit Holt Brothers Eqpt. Co., Stockton Unit $ - Tax $ - Total $ No Bid Empire Equipment Co., and Barnes Tractor & Equipment Co. do not have a used or demonstrator unit available for sale at this time. Holt Brothers Equipment Co. chose not to bid on this equipment. WHLOADER.XLS RESOLUTION NO. 95-80 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE PURCHASE OF 1994 ARTICULATING WHEEL LOADER FOR STREET DIVISION WHEREAS, Lodi Municipal Code, Section 3.20.070, authorizes dispensing with bids for purchases of supplies, services or equipment when it is in the best interests of the City to do so; and WHEREAS, the Street Division wishes to replace Tractor Loader No. 04040. a 1982 Case 580 C Unit with an hour meter reading of 3,443.0 hour which is fully depreciated; and WHEREAS, Tractor Loader No. 04040 was purchased for $16,465 and has accumulated repair costs of $49,030 and is now in need of a complete overhaul estimated at a minimum cost of $20,000; and WHEREAS, staff solicited four vendors by telephone and requested written bids for a new 1995 unit or a demonstrator/used 1994 unit and tabulations of those bids as follows: Reed Equipment Stockton $71,439.59 Barnes Tractor & Equipment Fembridge $87,573.81 Reed Equipment Stockton $88,355.00 Empire Equipment Sacramento $93,096.00 WHEREAS, the lowest bid from Reed Equipment is for a John Deere 244E Articulating Wheel Loader 1994 Demonstrator Unit with approximately 65 hours logged which comes with a full factory warranty and is available for immediate delivery; and WHEREAS, it is the recommendation of staff to purchase the John Deere 244E Articulating Wheel Loader 1994 Demonstrator Unit at the cost of $71,439.59; and NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council hereby approves the purchase of one John Deere 244E Articulating Wheel Loader 1994 Demonstrator Unit from Reed Equipment Company of Stockton, California in the amount of $71,439.59. Dated: June 21, 1995 I hereby certify that Resolution No. 95-80 was passed and adopted by the City Council of the City of Lodi in a regular meeting held June 21, 1995, by the following vote: AYES: COUNCIL MEMBERS - Davenport, Pennino, Sieglock, Warner and Mann (Mayor) NOES: COUNCIL MEMBERS - None ABSENT: COUNCIL MEMBERS - None ABSTAIN: COUNCIL MEMBE - one J C ELINE L. YL tin City Clerk