HomeMy WebLinkAbout11 Purchase a Wheel Loaderenda Item #
To: Board of Directors
From. Jim Wilson
Date: September 07, 2016
Subject: Consideration to Purchase a Wheel Loader
1. WHY THIS MATTER IS BEFORE THE BOARD
Board Approval is required for procurements in excess of $15,000 and only the Board
can declare a vehicle surplus.
2. HISTORY
In 2008, the District established the
Funds, to provide a source of funds
Funds are added each year by both
the adopted budget.
Electric Utility and Water Utility Vehicle Reserve
for periodic vehicle purchase and replacement.
Electric and Water Departments as described in
Unit 375 is a 1995 Catapillar Wheel Loader with transmission issues and damage to
the roll over protection system.
The District is currently utilizing a rented wheel loader, while our current unit is in the
shop for evaluation and repair estimates.
The repair facility has identified that the roll over protection system is damaged and
requires replacement, the transmission is malfunctioning and needs to be rebuilt, as
well the California Air Resources Board (CARB) requirements will soon require a
diesel particulate filter.
These repair costs exceed the value of the 1995 Caterpillar Loader.
3. NEW INFORMATION
On August 24, 2016, the District publically advertized specifications and requests for
the purchase of a new wheel loader or a wheel loader with less than 24 hours of use
and a tier 4 final, CARB compliant engine.
On August 31, 2016, a bid opening was held and the District received two bids and
both were responsive.
Bidder's Name Amount Responsive
Sonsray Equipment LLC 179,700.00 Yes
Cashman Equipment 165,000.00 Yes
District staff has reviewed all submitted doccuments and has determined Cashman
Equipment Inc. to be the lowest responsive bidder.
4. FISCAL IMPACT
Sufficient funds exist in the Water Utility Vehicle Reserve Fund for the purchase of this
equipment.
Recovery of some of the initial investment will be made through the sale of the surplus
equipment at public auction. Proceeds from the sale of Unit 375 will be transferred to
the Water Utility Vehicle Reserve Fund.
5. RECOMMENDATION
1) Award the purchase of one Catepillar Wheel Loader to Cashman Equipment Inc.
for the amount of $165,000 with a 10% change order authorization, for a not to
exceed amount of $181,500 plus tax.
2) Declare Unit 375 surplus and apply the sales proceeds to the Water Utility Vehicle
Reserve Fund,
3) Direct the General Manager to dispose of the unit in the most advantageous
manner.
Stephen Hollabaugh
Assistant General Manager
Michael D. Holley
General Manager