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HomeMy WebLinkAboutItem No. 09 Purch of Manitou M40 2WD ForkliftText File City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 17-142 Agenda Date: 4/11/2017 Status: Consent AgendaVersion: 1 File Type: AgreementIn Control: City Council Agenda Number: 9) Page 1 City of Lake Elsinore Printed on 4/6/2017 REPORT TO CITY COUNCIL To:Honorable Mayor and Members of the City Council From:Grant Yates, City Manager Prepared by:Jason Simpson, Assistant City Manager Date:April 11, 2017 Subject:Authorize the Purchase of a Manitou M40 2WD Rough Terrain Vertical Mast 8,000 Pound Forklift Recommendations 1.Approve and authorize the City Manager to execute a Purchase Order with Johnson Machinery for a Manitou M40 2WD Rough Terrain Vertical Mast 8,000 Pound Forklift in the amount of $32,932.82 plus tax, tags and DVM fees for the RV Resort Storage Project (CIP Project). 2.Waive the formal bidding process per Municipal Code Section 3.08.070(G) for purchases from Johnson Machinery due to finding the right tow vehicle for the RV storage operation requires specialized insight into the most productive, cost-effective machine. In addition to the power source, evaluating a variety of factors that impact the long-term cost, and how to best manipulate an RV load, and whether the City should buy new or used and marketplace availability is limited. Background Essential to the effective operation of the RV Storage Facility is the ability to move within small areas stored RVs with speed, ease, and safety. Finding the right tow vehicle for the RV storage operation requires specialized insight into the most productive, cost-effective machine. In addition to the power source, evaluating a variety of factors that impact the long-term cost, and how to best manipulate an RV load, and whether the City should buy new or used. Staff has determined the best and most versatile piece of equipment to perform the operational tasks of the RV Storage area is an off road forklift. Purchase options of both new and used forklifts for the new RV Storage Facility have been considered. Standard indoor forklifts have been illuminated from the purchase consideration as it is important to purchase an outdoor off road forklift. Another key consideration to this purchase is the fuel type. Compressed natural gas and diesel fuels are perhaps the most popular but not necessarily provide the best option for this RV Storage operational use. Equipment fuel consistency helps to simplify operational logistics support and gasoline will be the most common fuel type in storage facility operation. Johnson Machinery (Forklift) April 11, 2017 Page 2 Discussion The use of an off road forklift at the RV storage facility satisfies all the requirements and needs of an onsite tow vehicle with multiple capabilities. The primary capabilities of the proposed forklift purchase are listed below: Extremely tight turning radius Heavy lifting capability Both lifting and towing capability Simplified operator training and certification Precision handling load manipulation Excellent operator visibility Multi-faceted storage and corporate yard utilization The purchase of the this forklift has been scrutinized by reviewing online used forklifts of like make, model and capacity within a 250 mile radius of the City. Pricing ranges from over $80,000 new to over $25,000 for a used forklift with over 5,000 operating hours. The proposed forklift has all of the required features needed for the intended use. The total operating hours are only 1,198 hours, which is considered very low for the model year 2010. Services have been professionally maintained and verified. The purchase of a new forklift of this same capacity would cost $75,000 to $80,000, over $40,000 more. Fiscal Impact RV Resort Storage Project (CIP PROJECT #Z40007) is included in the Fiscal Year 16/17 – 21/22 Capital Improvement Plan (CIP) budget Wavier of Competitive Bidding Procedures Pursuant to Section 3.08.070(G) of the Municipal Code, the City Council has the discretion to waive the competitive bidding requirement that would otherwise be utilized for this purchase. Staff researched a variety of options and an outdoor, gas-operated, non-LP tank forklifts are hard to find and new ones are costly, as such staff recommends that the City Council waive the competitive bidding pursuant to Municipal Code Section 3.08.070(G) and allow the City Manager to contract directly with Johnson Machinery as outlined in this agenda report. The alternative is that City staff would have to rent the forklift at a cost of $1,100 to $1,400 weekly and the utilization will more than pay for itself in six months as the equipment will be needed daily. Exhibits A: Proposal Three different proposals. The quick comparison is below. This is a photo of the actual lift quoted: