R2021-82 Resolution Accepting the Sourcewell Bid Price from Altorfer for the Purchase of a Caterpillar 926M Wheel Loader

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4/29/2021 Item Coversheet in Public Works DATE: 4/21/2021 MEMO: 2021-49 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Scot Wrighton,City Manager Matt Newell,Public Works Director Deborah M.Perry,Purchasing Supervisor SUBJECT: Resolution Accepting the Sourcewell Bid Price from Altorfer for the Purchase of a Caterpillar 926M Wheel Loader. SUMMARY RECOMMENDATION: Staff recommends awarding a contract at the Sourcewell awarded contract amount of$120,385 to Altorfer for one(1)2021 Caterpillar 926M Wheel Loader to replace Vehicle#173. BACKGROUND: Funding was provided in the 2021 Water Fund budget to replace the Rollover Protection System(essentially the cab section)on the 16-year-old wheel loader used by the Lake Maintenance Section of the Public Works Department. Replacement was necessary due to rusting which had compromised the structural integrity of the rollover system which made the loader unsafe to operate. Staff received a quote of$45,000 to replace the Rollover Protection System;when added to other repairs needed to get the loader back into serviceable use,the total repair cost approaches$60,000. It is recommended that a more cost-effective approach is to replace the 16-year-old wheel loader because the necessary repairs are nearly half the cost of a new unit. With the money budgeted for the replacement of the Rollover Protection System,and by deferring the purchase of a Water Fund dump truck until FY 2022,the wheel loader can be replaced within the current funding allocated for vehicle replacement in the Water Fund. Vehicle#173,2005 Caterpillar 924G Wheel Loader The Public Works Department,Water Production Division has requested one(1)new wheel loader to replace one(1)wheel loader due to its age and condition. The replacement wheel loader is estimated to be delivered in approximately 90 days. It is recommended that this vehicle be purchased using Sourcewell awarded contract pricing. Sourcewell is a public agency that offers competitively solicited purchasing contracts for products and equipment to member agencies,so those members do not have to duplicate the solicitation process. The City joined Sourcewell several years ago to compare prices. Looking at various bidding options,including the Illinois Joint Purchasing Agreement,the Sourcewell quote is the best option for this vehicle. The replaced wheel loader will be traded in for$30,000 off the new loader which is a very generous amount due to the condition and age of the trade in. OTHER BIDDERS: None. LEGAL REVIEW There are no contracts for Legal to review. PRIOR COUNCIL ACTION: None. POTENTIAL OBJECTIONS: There are no known objections. INPUT FROM OTHER SOURCES: Fleet Maintenance wrote bid specifications based on Municipal Services and Water https://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ltemlD=3388 1/2