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PURCHASE OF ONE TRACTOR WITH ATTACHMENT
RECOMMENDATION
It is recommended that the City Council approve a motion to approve findings and authorize the purchase of one New Holland tractor and aerator attachment from Garton Tractor, Inc. of Stockton, CA in the amount of $175,049.08.
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Summary
The Municipal Utilities Department (MUD) requires a specialized tractor and attachment to efficiently aerate solids at the Delta Water Supply Project (DWSP) Water Treatment Plant. The Public Works Department is recommending the purchase of a New Holland tractor for this purpose through the State of California's contract with Garton Tractor, Inc., as well as purchase of an aerator attachment from Garton Tractor, Inc. as a sole source vendor. The total purchase cost of this equipment is $175,049.08, with funding from the MUD Enterprise fund.
DISCUSSION
Background
The DWSP Water Treatment Plant began operation in 2012 on a 60-acre parcel north of the City. The 30 million gallon per day water treatment plant uses state-of-the-art processes to treat San Joaquin and Mokelumne River source waters to the highest water quality standards required by State and federal law. The water treatment process involves removing solids from the water, and disinfecting that water prior to distribution to our customers. Solids removed from the water are stored for drying prior to disposal at a landfill. In order to facilitate the drying process, the solids need to be aerated, turned, and windrowed. To date, these activities have been accomplished using a converted front loader which is not intended for this purpose, resulting in an inefficient and time consuming process.
MUD staff has researched alternative processes, and has determined that many water utilities use a specialized unit called a Brown Bear attachment powered by a farm-type tractor to accelerate the drying process. This combination of equipment allows for the aeration function to be completed approximately twice as fast as passive drying. Other alternatives to passive drying are more complex, such as belt presses and centrifuges. While these are effective methods, they are far more expensive to build, operate, and maintain than mechanical drying using a paddle aerator. The Metropolitan Water District of Southern California and the San Joaquin Irrigation District are two agencies that use the Brown Bear for the same purpose, and have found this equipment very valuable to their operations.
In addition to use for the drying process, the proposed tractor can also be used for site mowing and other miscellaneous tasks. Accordingly, MUD staff budgeted for purchase of the tractor and attachment in fiscal year 2013-14 and requested Public Works Fleet Section to specify and acquire the equipment.
Present Situation
The State of California's Multiple Award Schedules (CMAS) program is available for use by local government agencies through a cooperative purchasing agreement. This program offers a wide variety of products and services at prices that have been established pursuant to a competitive bid process.
The items available under the current CMAS contract include a New Holland tractor unit that meets the City's requirements for tractor equipment. To minimize the administrative costs associated with purchasing a new tractor for MUD, it is proposed to purchase the unit from Garton Tractor, Inc. by utilizing a cooperative purchasing agreement with the State of California. Garton Tractor, Inc. is located in the City of Stockton. Use of this type of cooperative purchasing agreement reduces the net purchasing cost by obtaining a low bid price without the expense associated with conducting the bid process. Staff time and associated costs to develop specifications and prepare documents are minimized.
The New Holland tractor is available through the CMAS contract in the amount of $118,015.16. However, the Brown Bear paddle aerator attachment that is required for the proposed solids aeration process is not available through the CMAS contract. MUD staff has determined that the Brown Bear attachment is a unique, specialized piece of equipment that is ideal for solids aeration. Garton Tractor, Inc. is the sole vendor for this particular attachment. Therefore, the attachment is proposed as a sole source purchase from Garton Tractor, Inc. in the amount of $43,693.00.
The total price for the tractor with attachment is $161,708.16 (Attachment A). With the addition of 8.25 percent local sales tax, the total price is $175,049.08. Delivery time for the new unit is approximately 90 days once the equipment is ordered. MUD has requested supply of this equipment by May 1, 2014, to coincide with the warm weather drying season. The DWSP Water Treatment Plant has operated through one drying season to date and is approaching the second summer season. Last year, the spring weather was dry followed by a typical summer pattern and a drier than normal fall and winter. With these conditions, treatment plant staff was able to dry the sludge acceptably using a converted front loader. This process could be continued; however, this equipment is not intended for this purpose, resulting in higher labor expenses and equipment maintenance.
Findings
Stockton Municipal Code Section 3.68.070 (B) provides for an exception to the competitive bidding requirements in cases where Council has approved findings which support and justify the purchase.
Proposed findings to support this purchase are as follows:
1. The State of California has established a cooperative purchasing agreement for the purchase of one New Holland tractor.
2. The State of California established this cooperative purchasing agreement pursuant to a competitive bidding process.
3. The bid specification used by the State of California for the New Holland Tractor has been assessed as compatible to the City's standards.
4. The Brown Bear paddle aerator attachment is a specialized unit that is necessary for the proposed solids aeration process.
5. Garton Tractor, Inc. is the sole vendor for the Brown Bear paddle aerator attachment.
Staff recommends purchase of one New Holland Tractor from Garton Tractor, Inc. through the cooperative purchasing agreement with the State of California, and purchase of the Brown Bear aerator attachment from Garton Tractor, Inc., as a sole source purchase.
FINANCIAL SUMMARY
There are sufficient funds available in MUD Account No. 421-4234-606.94-01 for the purchase of one New Holland tractor with attachment at a total purchase price of $175,049.08. It is recommended that the motion approve the indicated findings, and authorize the City Manager to make the purchase and take any other actions that are necessary and appropriate to carry out the purpose and intent of the motion.
There is no impact to the City's General fund or to any other unrestricted fund as a result of taking the recommended action.
Attachment A - Quotes from Garton Tractor, Inc.