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    21.    
City Council Regular
Meeting Date: 05/22/2018  

SUBJECT:
AGREEMENT WITH QUINN COMPANY
RECOMMENDATION:
Authorize the execution of an agreement with Quinn Company as the sole source provider of on-call service, repairs and support of Caterpillar equipment in the amount of $60,000. The term of this agreement is from May 22, 2018 through June 30, 2019.  This agreement provides four, one-year renewal options of $50,000 annually, for a total not-to-exceed amount of $260,000.
BACKGROUND/ANALYSIS:
In July of 2017, services agreement A2017-196 in the amount of $25,000 was issued to Quinn Company for service and repair of Caterpillar equipment. Quinn Company is Caterpillar’s only authorized dealer servicing the City’s area and is therefore considered a sole source provider. The City’s fleet includes several Caterpillar generators and heavy equipment.  The agreement has been exhausted due to servicing of the generators and extensive repairs to heavy equipment.
 
Staff is requesting a new agreement be executed so that the servicing of equipment may continue without delay. The agreement will include $10,000 for the remainder of fiscal year 2017/18 and $50,000 for fiscal year 2018/19.  Each year thereafter has a not-to-exceed limit of $50,000 ending on June 30, 2023, for a total not-to-exceed amount of $260,000.
ENVIRONMENTAL (CEQA) REVIEW:
This action is not a project within the meaning of the California Environmental Quality Act (California Public Resources Code § 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations § 15000, et seq.) Section 15378 and is therefore exempt from CEQA. It will not result in any direct or indirect physical change in the environment because it solely provides authorization for the purchase of supplies and equipment repairs.
FISCAL IMPACT:
A blanket purchase order will be requested. There is sufficient funding in the Water, Sewer and Equipment Maintenance budgets to cover the Fiscal Year 2017/18 cost of the agrement with Quinn Company.  Future costs will be budgeted for in the appropriate fiscal year.  There is no impact on the General Fund with this item.
 
REVIEWED BY OTHERS:
This item has been reviewed by the Finance Director.
Attachments
Quinn Co. Agreement

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