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City Council Regular
Meeting Date: 06/12/2018  

1. Approve Quinn Company as the sole source provider for service and repair of Caterpillar equipment.

2. Authorize the execution of a one (1) year agreement with Quinn Company for on-call service, repairs and support of Caterpillar equipment in the amount of $55,000. The term of this agreement is from June 12, 2018, through June 30, 2019.  This agreement provides four (4), one-year renewal options of $50,000 annually, for a total not-to-exceed amount of $255,000.
In July 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 $5,000 for the remainder of fiscal year 2017/18 and $50,000 for fiscal year 2018/19.  Each renewal thereafter will have a not-to-exceed limit of $50,000 ending on June 30, 2023, for a total not-to-exceed amount of $255,000.
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.
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 agreement 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.
This item has been reviewed by the Finance Director.
Quinn Co. Agreement
Sole Source Letter

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