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CITY COUNCIL AGENDA ITEM NO. 5

Meeting Date: March 13, 2007

Subject/Title: Adopt a Resolution approving and authorizing the purchase of a replacement Water Division John Deere backhoe from Papé Machinery and authorizing the City Manager or her designee to execute a purchase order and necessary documents in an amount not to exceed $110,280.44.

Prepared by: Gary Skym, Water Distribution Supervisor
Chris Ehlers, Deputy Director of Public Works

Submitted by: Bailey Grewal, Director of Public Works/City Engineer

RECOMMENDATION
Adopt a Resolution approving and authorizing the purchase of a replacement Water Division John Deere backhoe from Papé Machinery and authorizing the City Manager or her designee to execute a purchase order and necessary documents in an amount not to exceed $110,280.44.

PREVIOUS ACTION
On February 24, 2004, by Resolution No. 2004-40, City Council adopted Purchasing Policy 10-7.

On June 14, 2005, by Resolution No. 2005-143, City Council adopted the Vehicle Replacement Program as part of the 2005/06 - 2006/07 Operating Budget for the City of Brentwood, which included the purchase of this backhoe.

BACKGROUND
The Water Division has two backhoes, a 1999 John Deere 310SE (“1999 310SE”) and a 2005 John Deere 310SG. The 1999 310SE is due for replacement through the Vehicle Replacement Fund. The 1993 310SE has been a reliable tractor; however, it does have lifting and reaching limitations. John Deere offers a 410J model, which has a greater lifting and reaching capability, making the placement of road plates safer and easier. The John Deere backhoe can be delivered within ninety days of purchase.

In compliance with Purchasing Policy 10-7, three bids were solicited. The bids received are as follows:

Papé Machinery $110,280.44
RDO Machinery $122,532.51
Coastline Equipment $132,714.50

Staff has selected Papé Machinery, as they are the lowest responsible bidder.

FISCAL IMPACT
The total replacement cost for the backhoe is $110,280.44. A total of $88,551 was budgeted and will be expended through the Vehicle Replacement Fund. The cost difference of $21,729.44 will be expended through the Water Enterprise Fund for a total amount not to exceed $110,280.44. This difference is a result of rising equipment prices due to an increase in the cost of steel and an upgrade in equipment.

Attachments:
• Resolution

RESOLUTION NO. _____

ADOPT A RESOLUTION APPROVING AND AUTHORIZING THE PURCHASE OF A REPLACEMENT WATER DIVISION JOHN DEERE BACKHOE FROM PAPÉ MACHINERY AND AUTHORIZING THE CITY MANAGER OR HER DESIGNEE TO EXECUTE A PURCHASE ORDER AND NECESSARY DOCUMENTS TO COMPLETE THE PURCHASE IN AN AMOUNT NOT TO EXCEED $110,280.44.

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

WHEREAS, on June 14, 2005, by Resolution No. 2005-143, City Council adopted the Vehicle Replacement Fund under the 2005/06 – 2006/07 Operating Budget for the City of Brentwood, which included the purchase of this backhoe; and

WHEREAS, the Water Division’s John Deere 310SE is due for replacement; and

WHEREAS, staff selected the backhoe that best meets the City’s operational needs; and

WHEREAS, staff bid this equipment purchase in compliance with Purchasing Policy 10-7; and

WHEREAS, Papé Machinery submitted the lowest, responsible bid meeting all City specifications.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Brentwood does hereby approve and authorize the purchase of a replacement backhoe from Papé Machinery and authorizes the City Manager or her designee to execute a purchase order and necessary documents to complete the purchase in an amount not to exceed $110,280.44.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 13th day of March 2007 by the following vote:
 

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