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CITY COUNCIL AGENDA ITEM NO. 9

Meeting Date: May 10, 2005

Subject/Title: Approve a Resolution authorizing the purchase of an asphalt pavement grinder/cold milling machine from Nixon–Egli Equipment Company and authorizing the City Manager to execute a purchase order for this equipment in an amount not to exceed $318,010.36.

Prepared by: Jim Gallegos, Streets Manager

Submitted by: Paul Zolfarelli, Director of Public Works

RECOMMENDATION
Approve a Resolution authorizing the purchase of an asphalt pavement grinder/cold milling machine from Nixon–Egli Equipment Company and authorizing the City Manager to execute a purchase order for this equipment in an amount not to exceed $318,010.36.

PREVIOUS ACTION
The 2003/04 - 2004/05 Operating Budget for the City of Brentwood was approved by City Council on June 10, 2003, Resolution No. 2893.

The Amended 2003/04 - 2004/05 Operating Budget for the City of Brentwood was approved by City Council on January 13, 2004, Resolution No. 2004-12.

Purchasing Policy 10-7 was adopted by City Council on February 24, 2004 by Resolution No. 2004-40.

BACKGROUND
In the Amended 2003/04 - 2004/05 Operating Budget for the City of Brentwood City Council approved the purchase of a slurry seal truck and an oil tank to perform in-house slurry seals on City streets. After much consideration and cost surveys (low cost of contracting work for slurry seals), staff discussed options and the decision was made to purchase an asphalt pavement grinder/cold milling machine. This change will be a great cost savings to the City. City crews will perform in-house grinding and patching on selected streets prior to contracting the annual Pavement Management Program.

Nixon-Egli approached the City with an offer to “piggy-back” on an asphalt pavement grinder/cold milling machine that was purchased by the County of Santa Cruz on June 05, 2003, Purchase Order No. 056280. This unit meets all the same specifications that the City of Brentwood is requesting. The County of Santa Cruz paid $293,774 plus tax for this machine. Nixon-Egli is offering the City of Brentwood the same unit at the same cost. The City received two bids prior to Nixon-Egli offering the piggy-back price. Bids are as follows:

• Ingersoll-Rand $320,961.25 (tax included)
• Nixon-Egli Equipment Co. $332,489.88 (tax included)
• No Other Bids

Staff recommends that the City accept this offer and purchase the asphalt pavement grinder/cold milling machine from the Nixon-Egli Equipment Company for $318,010.36 (tax included).

This equipment will be used within the Streets Division to enable the street crews to repair damaged asphalt areas that require removal and replacement and to complete the preventative maintenance work on pre-selected streets for the Pavement Management Program repairs, which would save funds from contracting this work out. With the City’s continued growth and more importantly, the amount of new streets being installed within the City of Brentwood, this new piece of equipment will assist the Public Works Department with responding to street maintenance work requests in a timely manner.

FISCAL IMPACT
A total of $315,000 was originally budgeted for new equipment in the Streets Division 2003/04 - 2004/05 Operating Budget. The Streets Division 2003/04 - 2004/05 Operating Budget was amended and the budget was increased to add new vehicles and equipment. An additional $105,000 was budgeted to purchase new vehicles and equipment. The amount not to exceed $318,010.36 for the asphalt pavement grinder/cold milling machine will be funded from the Streets Division 2004/05 Operating Budget.

Attachments:
• Resolution
• Letter with two (2) attachments from Nixon-Egli Equipment Co.

RESOLUTION NO.

APPROVE A RESOLUTION AUTHORIZING THE PURCHASE OF AN ASPHALT PAVEMENT GRINDER/COLD MILLING MACHINE FROM NIXON–EGLI EQUIPMENT COMPANY AND AUTHORIZING THE CITY MANAGER TO EXECUTE A PURCHASE ORDER FOR THIS EQUIPMENT IN AN AMOUNT NOT TO EXCEED $318,010.36.

WHEREAS, funds in the amount of $315,000 were approved by City Council in the 2003/04 - 2004/05 Amended Operating Budget on June 10, 2003, Resolution No. 2893 for the purchase of a slurry seal truck and an oil tank; and

WHEREAS, after further review and discussion, staff requested to change this purchase to an asphalt pavement grinder/cold milling machine; and

WHEREAS, funds were not expended in the 2003/04 fiscal year for the slurry seal truck and oil tank; and

WHEREAS, staff budgeted for an asphalt pavement grinder/cold milling machine in the 2004/05 Operating Budget; and

WHEREAS, the Amended 2003/04 - 2004/05 Operating Budget for the City of Brentwood was approved by City Council on January 13, 2004, Resolution No. 2004-12; and

WHEREAS, Purchasing Policy 10-7 was adopted by City Council on February 24, 2004 by Resolution No. 2004-40 and this purchase is in compliance with said policy; and

WHEREAS, the City of Brentwood intends to utilize similar specifications from the County of Santa Cruz, Purchase Order No. 056280; and

WHEREAS, the purchase of this new equipment will assist in servicing the public in a more efficient manner through preventative maintenance and responding to street maintenance work requests; and

WHEREAS, it is the intention of the Public Works Department to improve roadway conditions and maintain all City streets and right-of-ways to ensure public safety.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Brentwood that the City will purchase one asphalt pavement grinder/cold milling machine from Nixon–Egli Equipment Company.

BE IT FURTHER RESOLVED that the City Manager or his/her designee is authorized to execute a purchase order for this equipment with Nixon-Egli Equipment Company in an amount not to exceed $318,010.36.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 10th day of May 2005 by the following vote:
 

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