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HomeMy WebLinkAbout2010-02-23 City Council Item No. 5CITY OF r-7~ LADE ,LSIRORX DREAM EXTREME. REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: FEBRUARY 23, 2010 SUBJECT: PURCHASE OF BACKHOE AND LOADER Background Staff is proposing the purchase of one backhoe and one front end loader to replace existing equipment. The City's equipment inventory includes two older diesel powered tractors that are heavily used by Public Works, Lakes, and Parks operations. These pieces of equipment include a 1974 John Deer backhoe tractor and a 1990 Case front end loader tractor. Replacing this equipment with newer equipment will increase maintenance productivity; existing equipment is requiring excess maintenance. The City has an opportunity to use Air Quality Management District (AQMD) funding to purchase equipment to replace older diesel powered equipment. AQMD funds are set aside for projects or equipment that reduce vehicle emissions and staff would like to purchase equipment that is compliant with the California Air Resources Board (GARB) tier-3 emissions requirements. The purchase of 1 to 2 year old equipment provides both cost savings and tier-3 compliance without the higher cost of new equipment. Discussion Staff recognizes an opportunity to achieve two goals with the purchase of a backhoe and a front end loader. AQMD is requiring compliance with strict reduced emissions standards for diesel powered off road equipment. Although the tier-3 standards will be enforced beginning in 2016, every opportunity for compliance is being encouraged. Because of the age of the City's backhoe and front end loader, maintenance cost and maintenance time restrict staffs ability to use the equipment on a consistent basis. AQMD funds are provided to be used for emission reduction throughout the City. The moneys are primarily used to optimize signal timing and coordination, however, purchase of reduced emissions equipment is also an allowable use. Staff is requesting to be allotted a "not to exceed" amount of money from the City's AQMD funds for the AGENDA ITEM NO. 5 Page 1 of 3 PURCHASE OF BACKHOE AND TRACTOR February 23, 2010 Page 2 purchase of the backhoe tractor and the front end loader tractor. The purchases will accomplish the following: 1) Backhoe tractor - The 1974 John Deere backhoe tractor will be sold at auction and the proceeds will be returned to the City's revenue accounts. The newly purchased backhoe tractor will be put into service as a replacement of the 1974 John Deer backhoe tractor. 2) Front end tractor loader - We will keep the 1990 Case front end loader tractor and retire it to duties at the City Yard facility such as trash loading. The newly purchased front end loader tractor will be put into service as our primary field unit. To acquire this equipment, staff would like to take advantage of the auction service of Ritchie Brothers, located in Perris, California. Ritchie Brothers will provide an inventory of available equipment and allow staff to inspect the equipment prior to their auctions. The equipment will be newer equipment that meets the tier-3 CARB air quality standards. Fiscal Impact Funding in the amount of $150,000 is requested from the City's AQMD fund for the purchase of both pieces of equipment. This will leave a balance of $55,000 in the AQMD fund. Because the purchase is through an auction, the $150,000 is a "not to exceed" amount with any savings returned to the AQMD fund. Recommendation 1.) Authorize staff to purchase a backhoe tractor and front end loader from Ritchie Brothers Auction Service as described in this report. 2.) Authorize a not to exceed amount of $150,000 from the City's AQMD funds for the purchase of a backhoe tractor and front end loader from Richie Brothers Auction Service as described in this report. Page 2 of 3 PURCHASE OF BACKHOE AND TRACTOR February 23, 2010 Page 2 Prepared by: Bill Payne Public Works Manager Approved by; Ken Seumalo KA5 Director of Public Works Approved by: Robert A. Brady0 City Manager JJ~~VV Page 3 of 3