Report Prepared by: Cosmo Orduñez, Internal Services Manager, Public Works
Title
SUBJECT: Approval to Purchase One (1) New Kubota M7060HFC Tractor in the Amount of $52,917.72 to Replace E-844, and Acquire One (1) New Vrisimo RSS300-96 Roadsider Flail Mower With Necessary Attachment Equipment in the Amount of $14,072.50, from Garton Tractor Inc. for a Total Amount of $66,990.22 for the Street Division
REPORT IN BRIEF
The report recommends approval for the Street Division to purchase one new Kubota M7060HFC Tractor for $52,917.72 to replace E-844, a 1999 Case International Tractor identified for replacement in the FY 2026-27 Vehicle Replacement Schedule, and to acquire one new Vrisimo RSS300-96 Roadsider Flail Mower with necessary attachment equipment for $14,072.50, both from Garton Tractor Inc. through the Sourcewell cooperative purchasing program, for a total expenditure of $66,990.22, with a waiver of the City's competitive bidding requirement authorized under Merced Municipal Code Section 3.04.210.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City's competitive bidding requirement as permitted by Merced Municipal Code Section 3.04.210 to utilize cooperative purchasing agreements through Sourcewell; and,
B. Approving the purchase of one (1) new Kubota M7060HFC Tractor in the amount of $52,917.72 from Garton Tractor Inc., to replace Unit E-844, for the Street Division; and,
C. Approving the acquisition of one (1) new Vrisimo RSS300-96 Roadsider Flail Mower with necessary attachment equipment in the amount of $14,072.50 from Garton Tractor Inc., for the Street Division; and,
D. Authorizing the City Manager to execute any necessary documents for the purchases specified above; and,
E. Authorizing the City Buyer to issue the Purchase Order, and approving change orders not to exceed 10% of the total purchase price of $66,990.22.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions as specified by the City Council; or
3. Refer back to staff for reconsideration of specific items as requested by the City Council; or,
4. Deny
AUTHORITY
Merced Municipal Code Section 3.04.210 - Exemptions from Competitive Bidding.
CITY COUNCIL PRIORITIES
As provided for in the FY 2026-27 Adopted Budget.
DISCUSSION
Background
The City of Merced Street Division is responsible for the maintenance of public roadways, rights-of-way, and associated infrastructure throughout the City. As part of its ongoing operations, the Street Division relies on a fleet of tractors and mowing equipment to maintain vegetation along roadsides, medians, and drainage corridors. The FY 2026-27 Vehicle Replacement Schedule identifies Unit E-844, a 1999 Case International Tractor assigned to the Streets Department, as due for replacement.
Unit E-844 is now twenty-seven years old. The City's Fleet Management Division, which maintains more than 600 vehicles and pieces of equipment across all City departments, has determined that the unit has reached the end of its useful service life and requires replacement. The acquisition of a companion flail mower ensures that the replacement tractor can be deployed immediately upon delivery for roadside vegetation management without relying on aging ancillary equipment.
The City has a well-documented history of purchasing tractors and mowing equipment through cooperative government procurement programs. On January 3, 2017, the City Council approved the purchase of a John Deere model 6145M Tractor and a Tiger Extended Boom Mower as a combination unit for a total of $215,784.00 through the HGACBuy Program for the Street Division. On May 2, 2022, the City Council approved the purchase of a Midsize Kubota Tractor ($61,052.99) and a Landpride 20-foot Heavy Duty Rotary Cutter ($33,242.13) through Sourcewell for the Airport, both from Garton Tractor, Inc. On December 16, 2019, the City Council approved the purchase of a 150 HP tractor from Garton Tractor for $127,744.42 through Sourcewell. Most recently, on October 6, 2025, the City Council approved the purchase of one Kubota Skid Steer Loader, Model SSV75HFRC, in the amount of $72,003.89 from Garton Tractor, Inc. through Sourcewell Contract #112624-KBA for the Water Division.
Staff Analysis
Staff is recommending the purchase of one new Kubota M7060HFC Tractor for $52,917.72 and one new Vrisimo RSS300-96 Roadsider Flail Mower with necessary attachment equipment for $14,072.50, both from Garton Tractor, Inc., for a combined total expenditure of $66,990.22.
The Kubota M7060HFC is a utility cab tractor equipped with a four-cylinder diesel engine (model V3307-CR-TE4) rated at 71 net engine horsepower and 64 PTO horsepower. The unit is EPA Tier IV emission-certified, consistent with the California Air Resources Board requirements referenced in the City's recent equipment procurement practices.
Key specifications include a hydraulic-shuttle transmission with eight forward and eight reverse speeds, a live-independent hydraulic PTO, total hydraulic flow of 17.2 gallons per minute, and a 23.8-gallon fuel tank. The tractor is configured with front suitcase weights, an air ride seat suspension upgrade, front and rear work lights, and a rear window wiper kit.
The configured retail price for the Kubota M7060HFC with all specified attachments is $58,417.00. Through the Sourcewell cooperative purchasing program (Contract #082923-KBA for agricultural tractors), Garton Tractor, Inc. is providing a Sourcewell discount of $12,851.74. After application of the discount and addition of factory assembly ($325.00), dealer assembly ($775.50), freight ($562.50), pre-delivery inspection ($400.00), safety training ($650.00), dealer delivery ($600.00), tire tax ($7.00), and sales tax ($4,032.46), the total purchase price for the tractor is $52,917.72.
The Vrisimo RSS300-96 is a 96-inch Roadsider Series 300 road side flail mower configured for center mount with standard rotation. The retail price of $14,500.00 is reduced by a $1,500.00 government discount, resulting in a sale price of $13,000.00 before tax. With sales tax of $1,072.50, the total selling price for the flail mower is $14,072.50.
The quote from Garton Tractor, Inc. (Quote #3004292, dated October 9, 2026) references Sourcewell Contract #082923-KBA for the tractor pricing and specifies the City of Merced's Sourcewell Member Number as 2325. The quote expires on December 20, 2026.
Procurement Method
The total purchase amount of $66,990.22 exceeds the $25,000 competitive bidding threshold established in the Merced Municipal Code. Merced Municipal Code Section 3.04.210 permits the City Council to waive competitive bidding requirements for, among other things, cooperative purchasing in conjunction with other governmental entities. The proposed purchase utilizes the Sourcewell cooperative purchasing program, which conducts nationwide competitive solicitations on behalf of its member agencies, allowing the City to access pre-negotiated pricing.
Merced Municipal Code Section 3.04.200 prohibits splitting purchases into parts to avoid the competitive bidding threshold. Presenting the tractor and flail mower as a single combined purchase of $66,990.22 from Garton Tractor, Inc. for the Street Division is consistent with this requirement.
Rationale for Recommendation
Staff recommends approval of this purchase for three principal reasons. Unit E-844 is a 1999-model-year tractor that has exceeded its useful service life and is identified on the FY 2026-27 Vehicle Replacement Schedule for replacement. Continued reliance on this aging unit presents increasing maintenance costs and the risk of service disruptions to the Street Division's vegetation management program. Garton Tractor, Inc. is a local vendor (located at 700 S. Highway 59, Merced) with a demonstrated history of supplying equipment to the City and providing dealer assembly, pre-delivery inspection, safety training, and delivery services.
The acquisition of the Vrisimo RSS300-96 Flail Mower as part of this purchase ensures the replacement tractor is paired with compatible mowing equipment, enabling the Street Division to maintain roadside vegetation immediately upon the tractor's delivery.
IMPACT ON CITY RESOURCES
These pieces of equipment were approved in the FY2026/27 adopted budget under Fund 7006-Vehicle Replacement projects; no additional appropriation is needed.
ATTACHMENTS
1. Garton Tractor Kubota Tractor and Flail Mower Quote (Quote #Q03334)
2. Kubota Sourcewell Contract #082923
3. Kubota Sourcewell Contract Extension
4. Kubota Sourcewell Pricing Information