To: Mark R. Hafner, City Manager
From: Alonzo Liñán, Director of Public Works
Subject:
Title
Consider a resolution approving the purchase of one (1) replacement Case 321F Wheel Loader ahead of the Fiscal Year 2021-22 budget adoption from Associated Supply Company, Inc. of Euless, Texas through the Buyboard Cooperative Purchasing Program and authorizing the City Manager to execute all related purchase documents on behalf of the City of Keller, Texas.
Action Requested:
Consider a resolution approving the purchase of one (1) replacement Case 321F Wheel Loader from Associated Supply Company, Inc. of Euless, Texas through the Buyboard Cooperative Purchasing Program in the amount of $95,610.23.
Background:
The requested wheel loader is to be utilized by Public Works Department staff in order to move earth and material in confined spaces that will not support or allow the movement of larger machinery. The existing backhoe loader that this will replace is 12 years old, has a 3-year average repair cost of $1,894 per year and has 3,383 hours of use. This item is being requested ahead of FY 2021-22 budget adoption as long lead times are estimated to delay final delivery of the equipment by 8-12 months.
The City created a Fleet Management Plan during FY 2011-12 to provide standards and improve consistency and efficiency in the management and procurement of City vehicles and equipment. The plan established a Fleet Management Committee made up of representatives from Public Works, Parks, Finance, Administration, Police, Fire, Utility Billing and Building Services to implement fleet policies and review vehicle and equipment requests during the annual budget process. The Fleet Management Plan is applicable to all on-road City vehicles and heavy equipment in excess of 2,500 pounds.
During the initial establishment of the Fleet Management Plan, it was determined that the small-vehicle fleet would be budgeted via account transfers from their applicable operating funds at the start of the program. This was not applied to heavy equipment purchases such as loaders, excavators, tractors and/or other specialized equipment at the time due to the general expense of these types of items. The purchase of this wheel loader will continue the process of rolling these heavy equipment purchases into the Fleet Replacement Fund and will continue with the additional purchases of heavy equipment items in the future.
During the Fiscal Year 2021-22 budget process, all equipment requests were submitted to the City Manager for review. Because of the type and size of these heavy equipment items, this wheel loader and any additional future heavy equipment purchases are not subject to the terms of the City’s fleet agreement with Enterprise Fleet Management for the small-vehicle fleet.
BuyBoard is a purchasing program that allows state and local governments to benefit from the shared purchasing power of numerous state entities. A detailed bid sheet for the requested excavation and vacuum trailer is included with this memo as an exhibit.
Financial Impact:
The proposed FY 2021-22 Public Works - Water & Wastewater Utility Fund budget includes $95,000.00 for the Wheel Loader replacement which will be transferred to the Fleet Replacement Fund. An estimate provided by the vendor prices this equipment at $95,610.23, a difference of $610.23 from the budgeted amount. The vendor has offered a trade-in estimate for the existing equipment in the amount of $25,000, lowering the total cost of the purchase to $70,610.23. The difference will go towards the purchase of equipment accessories, including those necessary to complete work tasks, road & life safety equipment and equipment markings not included in the equipment purchase.
Citizen Input/Board Review:
Not Applicable
Legal Review:
Not Applicable
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
Consideration of the resolution as presented in the amount of $95,610.23.