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Home My WebLink AboutCC AG PKT 2003-07-28 #J 0) AGENDA REPORT g DATE: July 28, 2003 /) / TO: Honorable Mayor and City Council 6 / THRU: John B. Bahorski, City Manager FROM: Doug Dancs, P.E. Director of Public Works /City Engineer SUBJECT: FLEET REPLACEMENT: BEACH TRACTOR SUMMARY OF REQUEST: Staff requests council approve the acquisition of a previously owned beach tractor through a thirty -six month lease agreement with Municipal Finance Corporation with the adoption of the attached resolution, authorize the City manager to enter into the lease purchase agreement, and approve a budget amendment 04 -05 authorizing the use of funds to acquire the tractor. BACKGROUND: Last month, the transmission for the Department's eighteen - year -old tractor failed. This equipment was already in poor condition and needed to be replaced. The salt air had been deteriorating the electrical components and much of the tractor frame and body was rusted. The tractor's function is to pull a debris rake and sanitizer along the beach. This is the primary and most effective method for cleaning the City's beach. It was determined that it would cost $10,300 and take a minimum of four weeks to repair the tractor. In the interim, the Department had to rent a tractor at a cost of $3,900 per month. Due to the age of the equipment, the Department has evaluated its options on purchasing a replacement versus repair. The City can obtain the rental tractor for $54,000. The vendor would apply the interim rental fees toward the purchase price of this previously owned tractor. A new tractor purchased under the State contract would cost $67,659.68 plus the rental fees to use the rental until the new tractor is delivered. If the State contract process takes a few months, the cost to purchase would be increased by approximately $10,000 in rental fees. The Department recommends that if either a new or used tractor is purchased that it be it be leased over a 5 -year period in accordance with the Council adopted Fleet Management Plan. The Finance Department would obtain the financing. Due to the cost savings involved, it is recommended that the City procure a previously owned tractor rather than repair the current tractor or purchase a new tractor. Because the equipment is used, it is not possible to put out equivalent specifications bidding. The administrative policy manual does not cover the option of purchasing used equipment. Since the cost of this equipment exceeds $20,000, the Department is bringing this forward for Council for approval. Agenda Item cT FISCAL IMPACT: Total cost of the thirty -six month lease for the acquisition of the beach tractor is $57,802. Amounts to be expended from the General Fund for fiscal year 2003/04 for principal and interest payments is $14,451. The estimated ending General Fund undesignated fund balance for fiscal year 2003/04 before the budget amendment was $3,718,590. With the adoption of resolution 04 -05 the estimated ending General Fund undesignated fund balance for fiscal year 2003/04 is $3,704,139. RECOMMENDATION: Council approve the acquisition of a previously owned beach tractor through a thirty-six month lease agreement with Municipal Finance Corporation with the adoption of the attached resolution, authorize the City manager to enter into the lease purchase agreement, and approve a budget amendment 04 -05 authorizing the use of funds to acquire the tractor. d e Agll .IIIIII li eO r Doug Dancs, P.E., Director of Public Works /City Engineer NOTED AND :.','ROVED: Jol. : ahorski, City Manager Attachments 1. New Tractor Cost Proposal 2. Used Tractor Cost Proposal 3. Leasing Estimate for New Tractor 4. Budget Amending Resolution Agenda Item Attachment 1: New Tractor Cost Proposal Agenda Item JOHN DEERE COMPANY STATE CONTRACT WORKSHEET Agencv Information Billto: City Of Seal RParh Shipto: Public Works Yard Address: 1 776 Adolnfn T,npP7 Pr Address: _ acme areas S1 Reach 90740 Ag. Equip. VENDOR C &C Equip. DELIVERING DEALER OJohn Deere Co. John Deere Co. Dealer: R nO Equi pniert t Co . 11145 Thompson Ave. 2000 John Deere Run Acct#: 8601 Lenexa, KS 66219 Cary, NC 27513 City /State: R i ve r s i dP , CA Phone: (888) 222 -7239, option 5 (919) 804 -2418 Phone: (9 0 9) 682 5 3 5 3 Fax: (913) 310 -8349 (919) 804 -2485 Contact: Karl L. F i s he r This worksheet is intended to assist a John Deere dealer work with a qualified agency to prepare a purchase order for submission directly to John Deere Company. All purchase orders received by John Deere Company are subject to audit to verify prices. List Price Effective Date: List and price all codes, bundle and part numbers required. Equipment Codes Description Qty. List Price Total List Price 0741RW 7 570 4WTl Trar'tnr $81,581 nn 0994 fp1 nxP rah 614_00 1005 ''' Less Green Star 1 1 r,7 Pnwr gnarl 1 6F1 6P 7100 Twn 11)P1 nxP S('V' s 3 244.00 2473 Thrpe fnnctinn mid valves 2520 3N/2 3ot Hitch 3001 96" R/P Rear Axles 4840 70 8 x 18 Rear Tires 1,030.00 J. 4900 No Duals 5031 MFWD Front Axle 79.00 6168 16.9 x 28 Front Tires 1 179.00 8005 Comfort Seat 8101 Exhaust 518.00 - 9109 AM /FM Stereo Washers 104.00 X31 ( 7 wi rPrs and a 4.00 9777 Flood Lights 31 31 499.00 9018 Front Fenders 9988 Tire Perference : I A 11 9297 Rear whpP1 Wghts 860 nn • 9171 Vandal Package 281.00 9165 Mirrors RH & LH 320.00 Total List Price per Unit $ 91 , 4 3 2. 0 0 772 3 2 Discount Percentage: 9A 5k Discount 71 Price per Unit 6 7, 6 5 9.6 8 Number of Units 1 Total Price 67,659_68 Less Trade -in (if applicable) PO Price If agency is required to pay state sales tax enter percentage here: 7 _ 7 S Dealer Invoice/Order # If agency is tax exempt, include exemption certificate with your PO. Note: This worksheet cannot be used as a purchase order. Please submit this form with your PO. • Attachment 2: Used Tractor Cost Proposal Agenda Item QUOTATION r RDO EQUIPMENT CO RIVERSIDE SAN DIEGO 20 Iowa Ave. 909 -682 -5353 13625 Danielson St. 858- 679 -9200 P.O. Box 1069 800 - 494 -4863 Poway, CA 92064 800- 950 -1150 Riverside, CA 92502 -1069 FAX: 909 -275 -9130 FAX: 858-679-9277 JOHN DEERE • TO: C1TY OF SEAL BEACH DATE: 07 /15/03 PUBLIC WORKS YARD 1776 ADOLOFO LOPEZ DR. SEAL BEACH, CA. 90740 ATTENTION: Item Description Qty Unit Unit Price Amount 1 USED JOHN DEERE 7810 TRACTOR S/N 023906; $54,000.00 DELUXE CAB AND AIR CONDITIONING, 19 SPEED POWERSHIFT TRANS, TRIPLE REMOTE HYDRAULICS, CAT 3N/2 10050 LB HITCH, 118" REAR AXLE, - CAST 14.9 X R 46 TIRES, - MFWD FRONT AXLE, 14.9 X R30 FRONT WHEEL, DRAWBAR CLEVIS AND PIN, MFWD FENDERS, AM - FM STEREO, QT WEIGHT SUPPORT AND 14 WEIGHTS. Subtotal Plus applicable sales tax TOTAL AMOUNT FINANCED I F.O.B Delivery TERMS SUBMITTED BY n w ACCEPTED BY KARL FISHER (AUTHORIZED OFFICER /REPRESENTATIVE) TITLE SIGNATURE OF AUTHORIZED OFFICER OF SELLER IS REQUIRED TO MAIM THIS QUOTATION A CONTRACT PURCHASE, LEASE OR RENT COMPANY DATE PRICES SUBJECT TO CHANGE WITHOUT NOTICE UNLESS OCCLUSION GIVEN HEREON Attachment 3: Leasing Estimate for New Tractor Agenda Item ` - r RDO EQUIPMENT CO. RIVERSIDE SAN DIEGO 20 Iowa Ave. 909-682-5353 13625 Danielson St. 858-679-9200 P.O. Box 1069 800 - 494 -4863 Poway, CA 92064 800- 950 -1150 Riverside, CA 92502 -1069 FAX: 909- 275 -9130 FAX: 858-679-9277 sry ': ` __. t a 3c, SIS x r r+rascua -ry � t' JOHN DECK[ JULY 18, 2003 CITY OF SEAL BEACH PUBLIC WORKS YARD 1776 ADOLOFO LOPEZ DR. SEAL BEACH, CA. 90740 ATTN: DAN DAVIS ONE NEW JOHN DEERE 7520 4WD TRACTOR- CMAS CONTRACT PRICE: $67,659.68 MUNICIPAL LEASE MONTHLY PAYMENTS • NO ADVANCE PAYMENT USE TAX `2S Nor' INCLUDED 36 MOS. MONTHLY AMOUNT: $2,005.43 48 MOS. MONTHLY AMOUNT: $1,535.20 60 MOS. MONTHLY AMOUNT: $1,253.73 LEASE TO OWN Attachment 4: Budget Amending Resolution and Lease Purchase Resolution .1