DATE: November 19, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: PURCHASE ORDER FOR MACHINERY FOR THE PUBLIC WORKS DEPARTMENT
RECOMMENDATION
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Staff recommends that the City Council approve a purchase order to Hawthorne CAT, in the amount of $266,713, for one Caterpillar Model 926 Wheel Loader Machine for the Streets and Flood Control section of the Maintenance and Operation Division of the Public Works Department; and authorize the Financial Services Director, or designee, to execute the purchase order upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
Each budget cycle, fleet assets that meet their planned service life in years and/or miles, are planned for replacement. Prior to purchasing a replacement piece of machinery, Fleet and the department using the machine determine if the current machine type and usage needs is the same, if there is a less expensive alternative, if there is a “greener” alternative, and if the current machine has any useful life left.
The unit being replaced (SFR1) has reached the end of its service life. SFR1, a Wheel Loader, is being replaced due to its age, a history of mechanical issues from years of use, and its outdated Tier 2 emissions rating, which impacts the City's overall emissions profile as tracked by the California Air Resources Board (CARB) through the DOORS system. The replacement unit, a new Caterpillar 926, will provide improved emissions performance while maintaining the necessary power and operational capabilities. The City will benefit from reduced maintenance and fuel costs, improved air quality, and alignment with Tier 4 emissions standards under the DOORS program.
The replacement machine is being purchased through a Sourcewell contract agreement with Hawthorne CAT which offers the lowest pricing possible. Attachment A lists the total cost for the machine to be replaced this fiscal year. The replacement cost of the Wheel Loader, SFR1, is $266,713, with $50,639 total replacement collected. The shortfall will be made up by the following actions. Hawthorne CAT will be taking SFR1 in as a trade-in for $40,000. There are two units SMM, a 2000 Leeboy and SA7, and a 2014 Planer that will not be replaced, therefore, replacement amounts collected for SMM in the amount of $92,272, and unit SA7 in the amount of $25,597 will also be used towards the purchase of the new machine. The remaining difference will be paid out of the San Luis Rey Clearing account as the new Wheel Loader machine will be used for brush clearing at the San Luis Rey River.
FISCAL IMPACT
The purchase order with Hawthorne CAT in the amount of $266,713 will be charged to the accounts shown on the table below. Additionally, $208,508 will be collected through the combined sales and replacement funds of units SFR1, SMM and SA7. A budget change in the amount of $1,205 will be needed from San Luis Rey Clearing account 600430101.5305 to 600430101.5705 to fund the remaining cost of the new unit.
|
Description |
Amount |
Account |
Available Balance |
|
Hawthorne CAT |
$208,508 |
620609831.5705 Fleet Replacement |
$208,508 |
|
|
$57,000 |
905831123516.5705.10100 SLRR Clearing |
$57,000 |
|
|
$1,205 |
600430101.5705 San Luis Rey Clearing |
$181,536 |
|
Total |
$266,713 |
|
$447,044 |
Monthly replacement, maintenance and operation costs in the amount of approximately $3,513 will be collected for the new Wheel Loader for a total annual cost of $42,156.
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
Purchases must be made according to the procedures set forth in Chapter 28A of the City Code. The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Casey Van Der Linden, Fleet Manager
Reviewed by: Hamid Bahadori, City Manager
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Attachment A
3. Quote