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HomeMy WebLinkAbout11 Purchase a Compact Excavatorenda Item # CONSENT To: Board of Directors From: Jim Wilson Date. May 04, 2016 Subject: Consideration to Purchase a Compact Excavator 1. WHY THIS MATTER IS BEFORE THE BOARD Board Approval is required for procurements in excess of $15,000. 2. HISTORY 11 In 2008, the District established the Electric and Water Vehicle Reserve Funds, to provide a source of funds for periodic vehicle purchase and replacement. Funds are added each year by both Electric and Water Departments as described in the adopted budget. For the past three construction seasons it has been necessary for the District to rent additional excavation equipment. These rentals are a result of an increase in District projects requiring trenching and excavation. The past three years of rental cost for additional excavation equipment would have almost paid for the purchase of the equipment. 3. NEW INFORMATION Staff utilized the services of the National Joint Powers Alliance (NJPA), a national purchasing alliance that bring the benefit of volume pricing to it's members. The NJPA solicited purchase pricing of the equipment through a competitive bid process. Staff is requesting the purchase of a compact excavator to facilitate mobilization in the field. This compact excavator will allow for staff to undertake projects without the time and expense necessary to contact vendors and request quotes, and wait for equipment availabilty and delivery. With past rental history and the forecast of equipment needs in the next two years, it is cost effective for the District to own, rather than rent, this equipment, and thus enable excavation on projects when the other District owned equipment is in use. 4. FISCAL IMPACT Sufficient funds exist in the Water Department Vehicle Reserve Fund for the purchase of this equipment. 5. RECOMMENDATION Award the purchase of one Catepillar 305.5E2 Compact Excavator to Cashman Equipment Inc. for the amount of $81,076 with a 5% change order authorization, not to exceed $85,130 plus tax. t Stephen Hollabaugh Assistant General Manager Michael D. Holley General Manager