HomeMy WebLinkAboutCC 2025-09-09_09i 2020 Caterpillar Excavator PurchaseItem 9.i.
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MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Director of Public Works
BY: Dan Kies, Public Works Manager
SUBJECT: Purchase of a 2020 Caterpillar 308 Excavator with Attachment
Hardware and Freight
DATE: September 9, 2025
RECOMMENDATION:
1) Approve the purchase of a 2020 Caterpillar 308 excavator with Masticator, Flail Mower,
Hydraulic Thumb, 36” Digging Bucket, 24” Digging Bucket, and Freight;
2) Award the purchase contract to Holt of California;
3) Adopt a resolution to adopt findings that justify an exemption to competitive bid
solicitations; and
4) Determine that approving this purchase is exempt from the California Environmental
Quality Act (“CEQA”) under a Class 1 Categorical Exemption, Existing Facilities (CEQA
Guidelines § 15301), that consists of the operation, repair, maintenance, permitting,
leasing, licensing, or minor alteration of existing public or private structures, facilities,
mechanical equipment or topographical features, involving negligible or no expansion of
existing or former use.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
A total of $145,000 is budgeted in the Fiscal Year 205 -26 budget for the purchase of an
excavator and attachments. The $140,000 purchase is coming from the Measure O-06
Sales Tax Fund budget. An estimated $45,000 is spent on subcontractor services in fire
fuel reduction and the frequent rental of a larger excavator for various jobs. It is expected
that Public Works staff will significantly reduce rental costs due to this equipment being
readily available and part of the equipment fleet.
BACKGROUND:
Fire fuel mitigation is important to the safety and well-being of the residents and properties
of the City. Open spaces are a valuable asset to the City; however, they pose a potential
safety threat when not adequately maintained. The City has hired multiple subcontractors
over the past decade to help maintain fire fuels. The purchase of this excavator and
attachments will simplify the maintenance process, enabling Public Works to schedule
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Item 9.i.
City Council
Purchase of a 2020 Caterpillar 308 Excavator with Attachment Hardware and
Freight
September 9, 2025
Page 2
and safely maintain focused fire fuel areas on an annual basis, and in some cases, year-
round. For example, places like the City-owned Miller Way and Pearwood Avenue
property, as well as portions of the James Way Open Space, can be addressed more
frequently and on an as-needed basis.
The 308 excavator can safely navigate the uneven and steep terrain of the open spaces
using rubber tracks that have minimal ground impact. The masticator head and flail
mower will be driven by the hydraulic outputs of the excavator and will mow
(approximately 6 inches above ground), mulch, and grind fire fuels into a fine bark/mulch
that offers added benefits of soil and slope stabilization. As part of each fire fuels
management project scope, live trees are trimmed up to reduce ladder fuels, and no living
trees are removed.
The added hydraulic thumb will enable the excavator operator to pick up and move debris
such as dead/fallen trees and stumps. It will also enable the excavator to be used on
other Public Works projects, such as the upcoming demolition of the abandoned/
condemned residence located in the Le Point Street Parking Lot and cleaning out of a
large amount of the decomposing and dead debris surrounding many of the massive
trunks of the eucalyptus trees along The Pike.
The size of the 308 excavator enables the Public Works department to transport it with a
semi-truck and trailer already in the Public Works equipment inventory which eliminates
the need for the purchase of additional equipment such as a trailer or semi-truck.
Purchasing Policy Process and Exemption Request:
The City of Arroyo Grande Municipal Code Section 3.08.070(A)(3) requires that
purchases of goods with an estimated cost exceeding $50,000 be made pursuant to
formal procurement procedures, which include a publicly posted invitation to submit a
sealed bid or proposal. Section 4.4(3) of the City’s Procurement Manual aligns with the
Municipal Code and requires a formal solicitation process for purchases exceeding
$50,000.
Municipal Code Section 3.08.070(C)(5), allows the City to forego formal solicitation when
it would be “impractical, inefficient, or otherwise not in the best interest of the City.” Due
to the unique and time-sensitive nature of suitable used excavator units and attachment
packages, staff determined that a forma l sealed bid process would not be in the City’s
best interest. To adhere to the City’s purchasing policy requirements, staff is
recommending the approval of an exemption from competitive solicitation in accordance
with Section 4.6, Exceptions to Competitive Solicitations, of the Purchasing Policies and
Procedures Manual. In this case, it is impractical to issue a solicitation due to unique
requirements such as:
Budget threshold of $145,000;
The need for a used excavator and attachment package ($250,000 new);
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Item 9.i.
City Council
Purchase of a 2020 Caterpillar 308 Excavator with Attachment Hardware and
Freight
September 9, 2025
Page 3
The need for a certain level of quality and expected longevity (this excavator
has less than 1,000 use hours, which is about 10% of its operational life );
and
This used equipment package is uncommon.
Here, Staff obtained 3 price quotes for similar equipment (Attachments 2, 4, and 5). Based
on the evaluation of these quotes, staff is recommending the Board select the lowest cost
quote by Holt of California Caterpillar.
ANALYSIS OF ISSUES:
Currently, the Public Works Department does not have an exca vator that can safely
achieve the open space/residential interface fire fuel mitigation needed to properly reduce
the risks imposed by the current levels of fire fuels in the open spaces of the City. The
size of the 308 excavator will also improve Public W orks’ capabilities on projects that
require a larger or more powerful excavating machine.
The 2020 308 excavator is built with a Tier 4 Final diesel engine that complies with the
highest EPA standards and meets or exceeds all regulations set forth by the EPA and
San Luis Obispo County Air Pollution Control District.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Authorize a Purchase in the amount of $140,000 for the purchase of a 2020
Caterpillar 308 excavator with masticator, flail mower, 24” bucket, 36” bucket,
hydraulic thumb, and associated hardware and adopt the Resolution;
2. Do not approve the Purchase Order, do not adopt the Resolution, and continue
to rent equipment and hire outside contractors; or
3. Provide other direction to staff .
ADVANTAGES:
Purchase of the 308 excavator with masticator, flail mower, and associated hardware will
allow the City’s Public Works Department to more safely address fire fuels in the open
spaces of the City. The size of the 308 excavator adds to the overall capabilities of the
Public Works Department.
DISADVANTAGES:
Purchase of the excavator and associated hardware and attachments will require an
expenditure of $140,000, however, this cost is lower than the approved budget amount
of $145,000.
ENVIRONMENTAL REVIEW:
Approving this purchase is exempt from the California Environmental Quality Act
(“CEQA”) under a Class 1 Categorical Exemption, Existing Facilities (CEQA Guidelines §
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Item 9.i.
City Council
Purchase of a 2020 Caterpillar 308 Excavator with Attachment Hardware and
Freight
September 9, 2025
Page 4
15301), that consists of the operation, repair, maintenance, permitting, leasing, licensing,
or minor alteration of existing public or private structures, facilities, mechanical equipment
or topographical features, involving negligible or no expansion of existing or former use.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. Resolution
2. Sales quote from Holt of California a Caterpillar Equipment Dealership
3. Competitive Bid/Proposal Exemption Request Form
4. Sales quote from KCI Equipment (Oregon)
5. Sales quote from Carter Machinery (Virginia)
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ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE
AWARDING A CONTRACT FOR THE PURCHASE OF EQUIPMENT TO
HOLT OF CALIFORNIA CATERPILLAR
WHEREAS, the City of Arroyo Grande (“City”) understands that fire fuel mitigation is
important to the safety and well-being of the residents and properties of the City; and
WHEREAS, the City has hired contractors over the past decade to help maintain fire
fuels; and
WHEREAS, the City intends to purchase an excavator which will help simplify and
streamline the maintenance of these fire mitigation actions enabling Public Works to
schedule and safely maintain focused fire fuel areas; and
WHEREAS, a total of $145,000 is budgeted in the Fiscal Year 205-26 budget for the
purchase of an excavator and attachments. The $140,000 purchase is coming from the
Measure O-06 Sales Tax Fund budget; and
WHEREAS, currently, the Public Works Department does not have an excavator that can
safely achieve the open space/residential interface fire fuel mitigation needed to properly
reduce the risks imposed by the current levels of fire fuels in the open spaces of the City;
and
WHEREAS, Municipal Code Section 3.08.070(A)(3) requires that purchases of goods
with an estimated cost exceeding $50,000 be made pursuant to formal procurement
procedures, which include a publicly posted invitation to submit a sealed bid or proposal;
and
WHEREAS, Section 3.08.070(C)(5) of the City Municipal Code, allows for exceptions to
competitive solicitations when bidding would be “impractical, inefficient, or otherwise not
in the best interest of the City”; and
WHEREAS, due to the unique and time-sensitive nature of suitable used excavator units
and attachment packages, staff determined that a formal sealed bid process would not
be in the City’s best interest; and
WHEREAS, City staff solicited price quotes from a number of vendors, bu t due to the
specialized nature and non-availability of this type of equipment, received only three price
quotes for the excavator equipment, one of which was based in Oregon; and
WHEREAS, City Staff has determined that the quote provided by Holt of Calif ornia, a
Caterpillar Dealership (“Holt”) is in the best interest of the City as it represents the lowest
cost for an excavator that meets the needs of the Public Works Department.
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RESOLUTION NO.
PAGE 3
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The above recitals are true and correct and incorporated herein in
their entirety.
Section 2. The City Council finds that approving this purchase is exempt from
the California Environmental Quality Act (“CEQA”) under a Class 1 Categorical
Exemption, Existing Facilities (CEQA Guidelines § 15301), that consists of the operation,
repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or
private structures, facilities, mechanical equipment or topographical features, involving
negligible or no expansion of existing or former use.
Section 3. The City Council hereby ratifies the actions taken by Staff in this
procurement, approves the Purchasing Manual Exemption Form, and adopts the Staff
Findings above related to the use of Municipal Code Section 3.08.070(C)(5) for this
procurement as its own (“Council Findings”).
Section 4. The City Council hereby approves the purchase and procurement of
the excavator equipment from Holt.
Section 5. The City Manager or their designee is hereby authorized to execute
said purchase and procurement from Holt, in a form of contract to be approved by the
City Attorney, on behalf of the City of Arroyo Grande.
On motion of Council Member ________________, seconded by Council Member
_________________, and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 9th day of September, 2025.
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RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
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ATTACHMENT 2
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ATTACHMENT 3
In this case, it is impractical to issue a solicitation due to unique requirements such as: Budget threshold of %145,000, the need for a used excavator and attachment package (new $250,000), the need for a certain level of quality and expected longevity, this excavator has less than 1,000 use hours, which is about 10% of its operational life, and this used equipment package is uncommon.
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ATTACHMENT 4
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ATTACHMENT 5
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