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HomeMy WebLinkAboutCC AG PKT 2005-04-11 #T g i lAtl i • , 0 - AGENDA REPORT 191`1) c' 3ig DATE: April 11, 2005 CJ TO: Honorable Mayor and City Council THRU: John B. Bahorski, City Manager t • FROM: Mark K. Vukojevic, P.E., Director of Public Works /City Engineer jejlf SUBJECT: FLEET REPLACEMENT: BEACH SURF RAKE SUMMARY OF REQUEST: The proposed City Council action will adopt the attached resolution awarding a purchase order contract for the purchase of a new H. Barber Surf Rake for the Public Works Department to Haaker Equipment Company, making the findings that the purchase of the equipment is exempt from bidding in accordance with Section 1010 of the City Charter and Sections 3.20.025 and 3.20.045 of the City's Municipal Code which provides for purchasing when utilizing a sole source vendor and when it would be in the best interest of the City to dispense with standard bidding practices. The recommended equipment is only available through one vendor and it is in the best interest of the City to purchase this equipment to insure compatibility with the City's existing equipment. The proposed action will also adopt the attached Resolution No. authorizing the City Manager to execute a lease with option to purchase agreement with Municipal Finance Corporation for the purchase of the equipment. BACKGROUND: In June 2002, Council adopted a Fleet Management Plan during the 02/03 and 03/04 budget process. This document allocated the number of vehicles per department, outlined replacement guidelines and established the Public Works Department to manage the fleet and equipment for all the various departments within the City. Public Works Crews maintain the quality and cleanliness of the City Beach by using a combination of hand -crews and heavy equipment. The City's beach rake, which rakes, grooms, and removes debris from the beach, is approaching the end of its service life. It has been determined that purchasing a new beach rake is more cost effective than re- building the existing. In addition, removing the rake out of service for a length of time could become an issue for proper beach maintenance. Additionally, the new equipment could be financed which would make less of an impact on the City's budget. The proposed beach surf rake is a unique piece of equipment that is distributed by a sole source, making the findings that the purchase of the equipment is exempt from bidding in accordance with Section 1010 of the City Charter and Sections 3.20.025 and 3.20.045 of the City's Municipal Code. Agenda Item T The City would use a lease purchase agreement to spread the cost over a number of years. This finance /purchase methodology is discussed on pages 4 - 5 of the Council adopted 2002 Fleet Management Report. With an annual interest rate of 4.75% and an expected three year lifespan, it is estimated the annual cost of the equipment would be $20,858 per year continuously. FISCAL IMPACT: There is no financial impact to the General Fund during Fiscal Year 04/05 since lease proceeds for the acquisition of the vehicles will cover the cost of the vehicle purchases. The City will receive its first payment starting the 05/06 Fiscal Year and for three year's thereafter for a combined total principal and interest of $20,858 per fiscal year. RECOMMENDATION: It is recommended that the City Council adopt the attached resolution awarding a purchase order contract for the purchase of a new H. Barber Surf Rake for the Public Works Department to Haaker Equipment Company, making the findings that the purchase of the equipment is exempt from bidding in accordance with Section 1010 of the City Charter and Sections 3.20.025 and 3.20.045 of the City's Municipal Code which provides for purchasing when utilizing a sole source vendor and when it would be in the best interest of the City to dispense with standard bidding practices. The recommended equipment is only available through one vendor and it is in the best interest of the City to purchase this equipment to insure compatibility with the City's existing equipment. It is also recommended that City Council also adopt the attached Resolution No. authorizing the City Manager to execute a lease with option to purchase agreement with Municipal Finance Corporation for the purchase of the equipment. Prepared By: Mark K. Vukojevic, P.E., Director of Public Works /City Engineer Ni - • D APP O ) : Alr m i,,, Or ---- Jo • Bahorski, City Manager A achments: Exhibit A: Equipment Proposal Exhibit B: Resolution No.' J 3 1 Award of Contract and Authorizing the Dispensing the Bidding Exhibit C: Resolution No. fArc Authorization of Lease/Purchase Agenda Item Exhibit A: Equipment Proposal Agenda Item • • • HAAKER EQUIPMENT COMPANY - SINCE 1972 A CALIFORNIA CORPORATION 2070 N. WHITE AVENUE LA VERNE, CALIFORNIA • 91750 (909) 598 -2706 •• ' FAX (909) 598 -1427 PARTS DEPT. FAX (909) 594 -0498 www.haaker.com BUDGET PROPOSAL • February 17, 2005 TO: CITY OF SEAL BEACH ATTN: Mr. Don Hagen 1776 Al Lopez Drive • Fax: (562) 596 -2278 Se°ial_Beach, California 90740 • In •accordance with your request,!we are pleased to submit the following proposal for your consideration and approval: ONE (1) NEW H. BARBER MODEL 6001ID SURF RAKE Includes The Following Standard And Opii nal Equipment. • Standard Equipment ✓ 6' Wide Conveyor ✓ Dupont Imron Polyurethane Enamel 1 2 Cubit Nerd Hopper.. ✓ 1.0 -15.0 MPH'Qperating Speeds ✓ Comely Sealed And Protected Hydraulic ✓ Stain1elss Steel AlloyJines Drive With Built -In Overflow Protection ✓ Flotation Design Ti e'a ✓ 12 GPM Hydraulic Flow ✓ Cleaning Depth — Astable to 6" ✓ 13- gallon Hydraulic Capacity ✓ 8' Dump Height ✓ '7' Cleaning Width Options Included • ✓ Hot Dip Galvanizing ✓ Lighting Assembly Unit Price $ 53,832.00 California -Sales Tax @ 7.75% $ 4.1.71.98 PRI E F.O. EAT, BEA H, C_A_ : - $ 58,003.98 THE PROPERTY HEREIN IS GUARANTEED BY MANUFACTURER'S WARRANTY ONLY AND SELLER MAKES NO WARRANTY EXPRESSED OR IMPLIED, OF MERCHANTABILITY OR OTHERWISE, OR OF FITNESS FOR ANY • PARTICULAR PURPOSE, THAT EXTENDS BEYOND THE ABOVE DESCRIPTION OF THE EQUIPMENT. NOTE: Price is good for 90 Days . Cost increases due to the addition of Government mandated safety or environmental devices incurred_after the date of this proposal, will he charged. to you at -our- -cost. Proof of such costs, if any, will be documented. TAXES: SALES TAX applicable at time of delivery will be shown on our invoice. FEDERAL EXCISE TAXES, if applicable, will require payment unless a properly executed Exemption Certificate is submitted. gP�1P Exhibit B: Resolution No. Award of Contract and Authorizing the Dispensing of Bidding Agenda Item Exhibit C: Resolution No. 6't Authorization of Lease/Purchase Agenda Item