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TO: Mayor Richard C. Irvin
FROM: L. Eric Schoeny, P.E. Superintendent of Water and Sewer Maintenance
DATE: August 17, 2021
SUBJECT:
A resolution authorizing the Director of Purchasing to enter into an agreement with Altorfer CAT for the purchase of one 926M Caterpillar Wheel Loader in the amount of one hundred and fifty thousand six hundred and seventy dollars and no cents ($150,670.00).
PURPOSE:
The purpose for this request is to purchase a new wheel loader to replace the Water and Sewer Maintenance's existing 2002 wheel loader which is no longer operable or repairable.
BACKGROUND:
On July 14th, 2021 the City Clerk received and publicly opened four proposals for the subject purchase. The proposals were received in response to an advertisement for bid posted on June 27th, 2021 by Aurora's Purchasing Division.
Currently Aurora's wheel loaders are all exclusively Caterpillar brand. Having like equipment simplifies maintenance and repairs, makes stocking common maintenance items and parts easier, and reduces the expense of training operators and mechanics. Further, there are several Implements such as buckets, jib booms, and forks that are used on a daily basis that are not interchangeable amongst different brand machines. Typically in the past, in order to maintain like equipment in the fleet, bid specifications excluded supplying equipment other than the make and model specified. However, in order to perform a thorough analysis of the impacts of maintaining a wheel loader fleet with like equipment, the bid documents for this purchase allowed other brand wheel loaders to be proposed.
The attached bid evaluation includes the bid price of the machine plus the cost of the required implements. After factoring in the cost of the additional implements (for the Caterpillar there is no additional cost for implements since the City already owns those) the Volvo brand wheel loader proposed by Alta Equipment is the low total cost at $149,193, while the Caterpillar is the second low total cost at $150,670 or $1,477 more. Considering the value of having a fleet of like equipment, which includes not needing to train City mechanics and operators, and having implements that are interchangeable, it is our recommendation that the City purchase the Caterpillar wheel loader from Altorfer CAT in the amount of $150,670.00.
DISCUSSION:
A budget transfer is in process for account no. 510-4063-511.74-99 (Water and Sewer Fund) to cover the cost of this purchase.
IMPACT STATEMENT:
This purchase is necessary in order to perform the day to day tasks of maintaining Aurora's Water and Sewer infrastructure.
RECOMMENDATIONS:
Please consider adopting the attached resolution.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing the Director of Purchasing to enter into an agreement with Altorfer CAT for the purchase of one 926M Caterpillar Wheel Loader for the not to exceed amount of one hundred and fifty thousand six hundred and seventy dollars and no cents ($150,670.00).
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, on July 14th, 2021 the City Clerk for the City of Aurora received and publicly opened four bids for the purchase of a new wheel loader for Aurora's Water and Sewer Maintenance Division; and
WHEREAS, an analysis of the bids resulted in the bid from Altorfer CAT to be deemed in the best interest of the City of Aurora; and
WHEREAS, a budget transfer is in process for the 2021 budget to provide funding for the purchase in account 510-4063-511.74-99 (Water and Sewer Fund); and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: The Director of Purchasing is hereby authorized to enter into an agreement with Altorfer CAT for the purchase of a new wheel loader for the not to exceed amount of one hundred and fifty thousand six hundred and seventy dollars and no cents ($150,670.00).