HomeMy WebLinkAbout11 Backhoe Replacement AGENDA ITEM #11
TRUCKEE DONNER
Public
MEETING DATE: May 3, 2023
To: Board of Directors
FROM: Michael Salmon, Chief Financial Officer
Brian Yohn, General Services Manager
SUBJECT: Consideration of Procurement of 2023 John Deere 410 P-
Series Backhoe Loader
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
a. Authorize the General Manager to execute a contract with PAPE' Machinery for the
procurement of a 2023 John Deere 410 P-Series Backhoe Loader for Water
Operations with a total amount not to exceed $189,947; and
b. Declare Vehicle No. 314, 2008 John Deere 410J Backhoe Loader surplus and
authorize the General Manager to dispose of the unit at public auction, returning
proceeds from the sale to the Vehicle Reserve Fund.
BACKGROUND:
The District maintains a Vehicle Reserve Fund (Reserve Fund) for the Electric and Water
Departments. The funding of new and replacement vehicles and equipment comes from
the Vehicle Reserve Fund, which is replenished with budgeted annual contributions from
the Electric and Water Departments, plus revenue from the sale of decommissioned
vehicles and equipment sold at public auction. The Vehicle Reserve Fund and biannual
budget process helps to ensure the timely purchase and replacement of vehicles and
equipment essential for the District to reliably and safely serve customers. Upon Board of
Director approval and purchase, new vehicles are added to the fleet and assigned an
estimated useful life where a replacement schedule for all vehicles and equipment is used
by the District for future budget development.
Sourcewell, formerly National Joint Purchasing Alliance, has identified John Deere Heavy
Construction Equipment (Sourcewell #032119-JDC) and PAPE' Machinery, Inc. of Reno,
NV as a competitive bidder for Specialized Construction Equipment, through an RFP
process. Section 3.08.060 of the District Code (Joint Purchasing with the State of California
and other public agencies) permits the District to take advantage of other agencies
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competitive procurement processes. PAPE' Machinery, Inc. is a qualified Sourcewell
vendor, with a quote consistent with District Code requirements.
ANALYSIS:
The 2008 John Deere 410J Backhoe Loader is used heavily forwater system construction,
maintenance, and snow removal functions of the District. The backhoe loader has served
the District for 15 years and approximately 3,451 hours of operation.
The Board approved FY22-FY23 Budget included the budgeted and scheduled
replacement of the 2008 John Deere 410J for Water Operations. The FY22-23 budget for
the backhoe replacement expenditure is $157,720.
GOALS AND OBJECTIVES:
This item is in the support of the following goals and objectives:
1.05.020 Objectives:
1. Responsibly serve the public.
6. Manage the District in an effective, efficient and fiscally responsible manner.
Strategic Goals:
1. Manage for Financial Stability and Resiliency.
4. Take the best of private sector thinking to modernize the utility and add value to
our Communities.
FISCAL IMPACT:
The FY22-23 budget for the backhoe loader replacement expenditure is $157,720.
Sourcewell pricing for the John Deere 410 P-Series is $189,947, which is $32,227 or 20%
over the FY22/23 approved budget.
The Water Vehicle and Equipment Reserve Fund balance as of 3/31/2023 is$635,472 and
has sufficient funds for the procurement of the 2023 John Deere 410 P-Series Backhoe
Loader in the amount of $189,947
ATTACHMENTS:
None.
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