Report Prepared by: Charles Slagter, WWTP Operations Supervisor
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements, Authorizing the Purchase of a Replacement Tractor with a Horsepower Range of 300-340 Through the Sourcewell Government Procurement Program with a Total not to Exceed Amount of $325,000 from the Fleet Capital Replacement Fund 674
REPORT IN BRIEF
Considers authorizing a waiver of competitive bidding requirement to purchase one replacement tractor through the governmental procurement program Sourcewell and approving a supplemental appropriation of $169,119 from the Fleet Capital Replacement Fund 674.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the purchase of a replacement tractor with a horsepower range of 300-340 from a vendor competitively bid through the Sourcewell governmental procurement program, with a not to exceed amount of $325,000; and,
B. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code Section 3.04.210 and authorizing the tractor purchase to be made through Sourcewell; and,
C. Approving a supplemental appropriation in the amount of $169,119 from the unreserved, unencumbered fund balance of Fund 674-Fleet Replacement Fund to account line 674-1103-633.63-00, project 242115 for the purchase of the tractor; and,
D. Authorizing the City Manager or designee to execute any necessary contracts or documents and the Finance Officer to make any necessary budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions outlined by Council; or,
3. Continue to a future meeting; or,
4. Deny.
AUTHORITY
Merced City Charter, Section 200. Municipal Code Section 3.04.210 - Exemptions from competitive bidding.
CITY COUNCIL PRIORITIES
As provided for in the 2021-22 Adopted Budget.
DISCUSSION
At the July 15, 2019 Council Meeting, Council approved the grant application to the San Joaquin Valley Air Pollution Control District (SJVAPCD) Agricultural Tractor Replacement Incentive Program to replace one tractor at the Wastewater Treatment Plant (WWTP). The SJVAPCD accepted our application as complete on August 1, 2019 and executed the grant contract on February 22, 2021. The grant will reimburse the City $155,881.91 of the total tractor cost. The next step in the process is to purchase the replacement tractor. Once the tractor has been purchased, WWTF staff will submit proof of purchase to the SJVAPCD, who will then issue the grant funds.
On January 4, 2021, Council approved the purchase of a specific tractor from a specific vendor, along with a supplemental appropriation of $260,000 from the unreserved, unencumbered fund balance into Fund 674 Fleet Replacement Fund to purchase the replacement tractor.
After the purchase order was issued, the vendor was not able to fulfill their obligation in providing the WWTP with the specific tractor that was approved by Council. WWTP staff went back to Sourcewell and requested quotes for comparable tractors that are eligible under the SJVAPCD grant. Quotes received from Sourcewell came in at a higher price than the previously approved tractor. The reason for the higher price is because the previously approved vendor was the lowest bid. WWTF staff will need to purchase from the next responsible bidder.
On February 1, 2021, Council accepted $155,881.91 in grant funds from the SJVAPCD Incentive Program; funding will not be disbursed to the City until the grant contract terms have been met, including proof that the replacement tractor has been purchased and placed into service. In order to purchase the tractor in Fiscal Year 2021/2022, staff is requesting an appropriation of fund in the amount of $169,119 (the difference of $325,000 less the grant amount of $155, 881.91 accepted and appropriated in Fiscal Year 2020-21) and to approve the purchase of the tractor, with a horsepower between 300 and 340, from a vendor under a Sourcewell contract.
IMPACT ON CITY RESOURCES
An appropriation of $169,119 from Fund 674-Fleet Replacement is needed to purchase the replacement tractor. Once funding from the incentive program is received from the San Joaquin Valley Air Pollution Control District (SJVAPCD), the money will be credited back to Fund 674 -Fleet Replacement Fund.
The original supplemental appropriation for this purchase from Fiscal Year 2020-21 was not encumbered or used and does not carryover once the year lapses. The funding remains in the fund balance of Fund 674-Fleet Replacement. Therefore; re-appropriating the necessary funds is required.
ATTACHMENTS
None