DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Off Road Construction Equipment
SUMMARY:
This ordinance authorizes acceptance of contracts with Associated Supply Company, Inc. dba ASCO Equipment, HoltCat, and Nueces Farm Center, Inc. dba Nueces Power Equipment to provide the Transportation and Capital Improvements (TCI) and Solid Waste Management (SWMD) departments with the replacement of six units of off road construction equipment for a total cost of $811,798.00. Funding for this purchase in the amount of $801,857.00 is available from the FY 2019 Equipment Renewal and Replacement Fund (ERRF) Budget, and in the amount of $9,941.00 from the FY 2019 Storm Water Operating Fund Budget.
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the attached tabulation of seven bids to provide for the replacement of six units of off road construction equipment for a total cost of $811,798.00. This purchase includes two wheeled loaders with a 2.5 cubic yard bucket, one wheeled loader with a 4 cubic yard bucket, one enclosed wheeled skid steer loader with attachments, one tracked skid steer loader with attachments and one wheeled material handler.
This equipment will be utilized by the Transportation and Capital Improvements and Solid Waste Management departments for cleaning drainage channel debris, aggregate material loading, street repair projects, loading brush into tub grinders and other off road projects throughout the City.
ISSUE:
These contracts will provide six replacements for existing off road construction equipment for the TCI and SWMD departments. The replacement of these units is consistent with the City’s Equipment Renewal and Replacement Fund (ERRF) program.
All units are covered by a minimum 12 months warranty and up to 3 years or 3,000 hours that will start on the day each unit is placed in service. The life expectancy for this equipment is 120 months.
The Small Business Economic Development Advocacy (SBEDA) Ordinance requirements were waived due to the lack of small, minority, and/or women businesses available to provide these goods and services.
In accordance with the Local Preference Program, no Local Preference was applied for Items 1 through 4 since the local bidders are not within 3% of the recommended lowest non-local bidder. The recommended award for item 5 is to the lowest responsive bidder who is a local business; therefore, application of the Local Preference Program was not required.
The Veteran-Owned Business Program does not apply to good/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
The current off road construction equipment scheduled for replacement has met their age and/or engine hour requirement and are no longer economically feasible to repair. Should the replacement equipment not be purchased, the alternative is to continue use of the existing equipment but incur increased maintenance costs and potential delays in the delivery of essential channel debris cleaning, street repair, brush site services for the City of San Antonio.
FISCAL IMPACT:
This ordinance authorizes acceptance of contracts with Associated Supply Company, Inc. dba ASCO Equipment, HoltCat, and Nueces Farm Center, Inc. dba Nueces Power Equipment to provide the Transportation and Capital Improvements (TCI) and Solid Waste Management (SWMD) departments with the replacement of six units of off road construction equipment for a total cost of $811,798.00. Funding for this purchase in the amount of $801,857.00 is available from the FY 2019 Equipment Renewal and Replacement Fund (ERRF) Budget, and in the amount of $9,941.00 from the FY 2019 Storm Water Operating Fund Budget.
RECOMMENDATION:
Staff recommends the approval of three contracts to purchase six off road construction equipment replacement items from Associated Supply Company, Inc. dba ASCO Equipment for a cost of $86,500.00; HoltCat for a cost of $317,411.00; and Nueces Farm Center, Inc. dba Nueces Power Equipment for a cost of $407,887.00. The total cost of this purchase is $811,798.00.
This contract is procured on the basis of low bid and a Contracts Disclosure Form is not required.