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Regular Agenda Item 4. I.

Regular BOS Meeting

Meeting Date:	11/05/2019
Submitted For:	Steve Sanders	Submitted By:	Betty Hurst, Contracts Administrator
Department:	Finance
Fiscal Year:	2020	Budgeted?:	Yes
Contract Dates Begin & End:	11-05-19 to 12-15-19	Grant?:	No
Matching Requirement?:	No	Fund?:	Replacement

Information

Request/Subject

Approval to use Sourcewell Cooperative Contract No. 032515 to purchase one new CAT 420F2 backhoe loader with I.T. linkage.

Background Information

The purchase is being made through a cooperative contract that the County has used before with Empire Machinery. Gila County has been a member of the National Joint Powers Association (NJPA) since 2007 but is now known as Sourcewell. The Cooperative Contract No. 032515-CAT has provided great incentives when purchasing Caterpillar products.

The County has a lot of Caterpillar equipment and prefers to stay with one brand for the ease of tools and training. It saves money using one brand because the equipment is so electronically specialized now, that the cost of training and diagnostic tools would have to be duplicated to be efficient for regular maintenance. Empire Machinery is the largest Caterpillar dealer in Arizona and offers great incentives and maintenance options.

Evaluation

The new backhoe loader will be powerful enough to do the work we need to accomplish. This type of machine is used more than any other piece of equipment within the County. The Consolidated Roads Division has a few backhoes but this one will have high tech electronics and enable monitoring. The trade-in is K-005 a 1997 Caterpillar 416C S/N 1WR01448 that was been working until the engine breakdown. Rather than put more money into a worn-out machine it was chosen as the trade. The trade in of $12,900 is more than what staff believes it would bring at auction.

Conclusion

The County has purchased heavy equipment in the past by using the Sourcewell Cooperative. Staff is always looking for ways to save money and cooperative agreements have helped to keep costs down. The bid pricing is set to maximums that can be charged to the customer and Empire CAT has provided that for the County and has included its added price incentives. Staff decided to purchase rather than lease or finance this piece of equipment.

The equipment is standard except for the hydraulic thumb that was requested.

Staff maintains this machine will get a lot of use in the County and it is a better use of funds.

Recommendation

The Public Works Department Director recommends that the Board approve the Customer Purchase Agreement with Empire CAT with the use of Sourcewell Contract No. 032515-CAT to purchase the new 2019 Caterpillar 420F2 backhoe loader with I.T. linkage plus name the trade-in of a 1997 K-005 416C backhoe surplus. The total purchase amount is $125,705.59 with Empire.

Suggested Motion

Information/Discussion/Action to authorize the Chairman's signature on a Customer Purchase Agreement in the amount of $125,705.59 between Gila County and Empire CAT for the purchase of one 2019 420F2 backhoe loader with I.T. linkage. (Steve Sanders)

Attachments
Sourcewell Contract No. 03215-Empire Machinery
420F2 IT NJPA-19
NJPA Sourcewell Contacts
NJPA 032515 Acceptance_and_Award-CAT