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Item Number: H.7. CITY COUNCIL REPORT SUBJECT: Caterpillar Inc. Cooperative Purchasing Agreement MEETING DATE: September 23, 2025 TO: Mayor and Council FROM: Jamie McCracken, Utilities Director REVIEWED: Reyes Medrano Jr., City Manager PURPOSE: The Utilities Department is requesting approval of a Cooperative Purchasing Agreement between the City of Tolleson and Empire Southwest, LLC for heavy equipment. The first planned purchase under this agreement is a backhoe to support the City’s water and wastewater operations. BACKGROUND: The City of Tucson, through a competitive procurement process, entered into Contract No. 212816-01 with Caterpillar Inc. on October 3, 2022, for heavy equipment parts, accessories, supplies, and related services. The contract allows for cooperative use by other public entities, including the City of Tolleson, pursuant to Section 3-5-7 of the Tolleson City Code. This Cooperative Purchasing Agreement establishes Tolleson’s participation in the Tucson contract and allows the City to purchase Caterpillar equipment, including the needed backhoe, at competitively bid pricing and terms. DISCUSSION: The Agreement is effective through October 2, 2026, unless terminated earlier in accordance with its terms. It is structured as an indefinite delivery and indefinite quantity arrangement, meaning the City may make purchases as needed by issuing purchase orders under the agreement. The Utilities Department has identified the immediate purchase of a backhoe as essential to maintaining and improving water and wastewater infrastructure, ensuring reliable service delivery to Tolleson residents. BUDGET IMPACT: The Cooperative Purchasing Agreement limits compensation to an aggregate amount not to exceed $175,000 per fiscal year. Funding for the backhoe purchase is included in the Utilities Department’s approved budget. RECOMMENDATION: Staff recommends approval of the Cooperative Purchasing Agreement between the City of Tolleson and Empire Southwest, LLC for heavy equipment and authorization for the City Manager to execute and deliver said Agreement. ATTACHMENTS: 1. 09 23 25 UT - CPA - Empire Southwest - End Date 10 02 26