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HomeMy WebLinkAbout11. 21-63PURCHASE OF USED MOTOR GRADER TO BROOKS TRACTOR INC. FOR STREET DIVISION ($219,000.00) INITIATED BY: PURCHASING WHEREAS, the Street Division is in need of a replacement motor grader to replace the 2002 Volvo Motor Grader; and WHEREAS, the staff solicited proposals for used graders meeting the specifications for this unit and the proposal for a 2016 John Deere 772GP Motor Grader from Brooks Tractor Inc. met all the unit requirements at the lowest cost. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper City officials are hereby authorized and directed pursuant to Section 12-13 of the Oshkosh Municipal Code to waive the requirement that used, surplus or excess equipment be obtained only from governmental sources and purchase a used 2016 John Deere Motor Grader from: BROOKS TRACTOR INC. 1031 Lawrence Drive De Pere, WI 54115 Total Bid with Trade: $219,000.00 BE IT FURTHER RESOLVED that the proper City officials are hereby authorized and directed to enter into an appropriate agreement for the purpose of same. Money for this purpose is hereby appropriated from: Acct. No. 03230430 7204 66917 Machinery & Equipment: Grader with Plow & Wing FEBRUARY 9, 2021 21-63 RESOLUTION (CARRIED__7-0____LOST________LAID OVER________WITHDRAWN________) PURPOSE: WAIVE FORMAL BIDDING REQUIREMENTS AND APPROVE City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us TO: Honorable Mayor and Members of the Common Council FROM: Jon Urben, General Services Manager DATE: February 1, 2021 RE: Waive Formal Bidding Requirements and Approve Purchase of Used Motor Grader to Brooks Tractor Inc. for Street Division ($219,000.00) BACKGROUND The Common Council allocated $210,000.00 in the 2021 CIP for the purchase of a used motor grader for the Street Division. The used unit will replace a 2002 Volvo that has experienced repeated problems with its moldboard turntable, front and rear drive and just recently a broken clutch that would cost approximately $10,000 to repair. In the last five years cost of repairs to this unit have been $47,213.34. The replacement of the 2002 unit with a used unit was based on a combination of factors. 1) The unit is an indispensable necessity during snow plowing operations; 2) The unit is used on average approximately 150 hours in a snow season; 3) A new grader with the required plow/wing attachments is approximately $400,000.00. Based on these factors, staff determined that a used unit about five years old with the required equipment and relatively low hours could be acquired for less cost and still meet the needs for the Street Division. ANALYSIS Staff solicited proposals from heavy equipment dealers for used graders meeting the specifications for this unit. While several dealers expressed some initial interest, only one proposal was received. Staff reviewed the proposal and concluded the 2016 John Deere 772GP Motor Grader from Brooks Tractor Inc. met all the unit requirements at a competitive cost. The proposal tab is attached. The Brooks Tractor Inc. unit is tax exempt and includes delivery to Oshkosh. FISCAL IMPACT The 2021 CIP allocated $210,000.00 for this used unit. The fiscal impact for this unit with trade-in is $219,000.00. This unit will be charged to 2021 CIP A/N#: 03230430 7204 66917 (Machinery & Equipment: Grader with Plow & Wing). The overage ($9,000.00) will be charged to remaining funds in 2019 CIP A/N# 03230430 7204 66917 that was assigned for the purchase of another used grader. RECOMMENDATION Section 12-13 of the Municipal Code provides that subject to approval of the City Manager, the city may acquire any used or surplus or excess equipment, materials or supplies from a federal, state or local government authority without following competitive bidding or quotation process if the Purchasing Authority in consultation with the appropriate department head, determines that such acquisition is in the best interest of the city. However, as no used graders could be found from federal, state or local government sources, our search turned to private dealer sources which then yielded this unit. In consideration of this and the limited used market for these types of vehicles, we are requesting the Common Council waive the federal, state and local government source requirement of Section 12-13 and recommend the Common Council approve the purchase of this used 2016 John Deere unit for $210,000.00 from Brooks Tractor Inc. in De Pere, WI. Respectfully Submitted, Approved: Jon G. Urben, General Services Manager Mark A. Rohloff, City Manager City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us PROPOSAL TAB USED MOTOR GRADER FOR STREET DIVISION TRADE-IN VENDOR PROPOSAL 2002 VOLVO PROPOSAL WITH TRADE G736VHP Brooks Tractor Inc 2016 John Deere 772GP Motor 1031 Lawrence Drive $235,000.00 $16,000.00 $219,000.00 De Pere WI 54115