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HomeMy WebLinkAboutItem No. 05 Purchase of Skip LoaderText File City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 17-430 Agenda Date: 11/28/2017 Status: Consent AgendaVersion: 1 File Type: AgreementIn Control: City Council / Successor Agency Agenda Number: 5) Page 1 City of Lake Elsinore Printed on 11/21/2017 Page 1 of 2 REPORT TO CITY COUNCIL To:Honorable Mayor and Members of the City Council From:Grant Yates, City Manager Prepared By: Dave Nichols, General Services Manager Date:November 28, 2017 Subject:Purchase of Skip Loader Recommendation 1. Approve and Authorize the City Manager to execute a purchase order with United Rentals for a 2013 Case 570 NXT Skip Loader from United Rentals in the amount of $53,000 plus tax, tags and DMV fees. 2. Waive the formal bidding process per Municipal Code Section 3.08.070(G) for purchases from United Rentals due to finding the right skiploader for public works 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 public works need and load, and whether the City should buy new or used and marketplace availability is limited. Background Currently Public Works Operations has a 2007 Skip Loader that was purchased new in April of 2007 for $80,812. The Skip Loader is a piece of equipment that is used daily for various operations such as: loading trash & debris into dump trucks, grading road shoulders, grading of dirt roads, storm debris clean up, etc. The department has an on-going need for an additional skiploader to avoid the high cost of renting equipment. Discussion Routine and emergency work frequently results in having to rent a second skip loader to keep up the work demand. During emergency conditions rental units are not always available and can take a day or two to get delivered. Having a second unit available will help Public Works keep up with routine work and properly respond in a timely manner with storm clean up. In addition having the second unit will allow us to perform routine maintenance on the equipment without having to secure a rental unit. These are machines and they do breakdown Purchase of Skiploader November 28, 2017 Page 2 Page 2 of 2 or require repairs from time to time, and never at a convenient time. It can be a simple issue such as a flat tire or a major repair that will take days to perform. A new skip loader in 2007 was over $80,000. Today the comparable unit is $90,000 - $100,000+. The used skip loader being considered for purchase is a rental unit with only 2,256 hours and has documented maintenance records, with all work being performed by professional mechanics. Fiscal Impact The skiploader will be capitalized for $53,000, which is funded from the Facilities Internal Service Fund. Attachments A – Skiploader Quote UNITED RENTALS