DATE: June 18, 2019
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Adopt Resolutions Authorizing Sole Source Purchase of a John Deere 245G Excavator from PAPÉ Machinery and Transfer and Appropriation of Funds from the Water Replacement Fund to the Fleet Capital Management Fund
RECOMMENDATION
That Council adopts the attached resolution authorizing the sole source purchase of a John Deere 245G Excavator from PAPÉ Machinery, in an amount not to exceed $245,770 (Attachment II), and transfer of funds from the Water Replacement Fund to the Fleet Capital Management Fund for appropriation and purchase of the excavator (Attachment III).
SUMMARY
The City’s Utilities Division operates and maintains all water and wastewater collection system facilities, including water distribution system repairs. Division staff frequently uses a rented excavator to perform this work, which often includes hauling of spoils (asphalt, dirt, and debris) from pipeline maintenance and replacement work, and transporting heavy water pipe fittings over rough terrain. Based on past rental expenses and frequency of use, staff has determined that it would be more cost-effective and efficient to purchase an excavator to perform future work. Utilities staff is trained to operate the John Deere 245G excavator, which possesses the features and capabilities best suited for the type of work the Utilizes Division performs. PAPÉ Machinery is the only authorized John Deere dealer in Hayward; therefore, staff recommends authorization for a sole source purchase agreement with PAPÉ Machinery, in an amount not to exceed $245,770, for the purchase of a John Deere 245G excavator.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution Authorizing Sole Source Purchase
Attachment III Resolution Authorizing Transfer and Appropriation