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 521G front-end loader 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 521G front-end loader from Associated Supply Company, Inc. through the Buyboard Cooperative Purchasing Program in the amount of $128,000.
Background:
The requested front-end loader is utilized by Public Works Department staff in order to receive, stage and move bulk materials, including rock, sand, soils and mulch in and around the Municipal Service Center. The existing front-end loader is 12 years old, has a 3 year average repair cost of $3,300 per year and has 6,203 hours of use. The existing unit is in need of repairs which are being deferred in anticipation of the purchase of a new front-end loader.
The City created a Fleet Management Plan during Fiscal Year 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 excavators, tractors and/or other specialized equipment at the time due to the general expense of these types of items. The purchase of this front-end 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 2019-20 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 front-end 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 total amount budgeted for this equipment is $150,000.00 which is to be funded from the Water & Wastewater Utility Fund and Fleet Replacement Fund. Special discounts and trade in value for the existing unit are proposed by the vendor at $31,819.92, bringing the total cost of the equipment from $159,819.92 to $128,000, a difference of $22,000 from the budgeted amount. 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:
City Attorney has reviewed and approved.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial