Report Prepared by: Jeremy Franklin, Division Chief - Fire Department
Title
SUBJECT: Approval of a Supplemental Appropriation in Fund 7006-Fleet for Replacement and Approval to Purchase One (1) 2027 Chevrolet Tahoe 4WD ($79,014), from National Auto Fleet Group Plus a 10% Contingency ($7,902) for a Total not-to-Exceed Amount of $86,916 for the Fire Department to Replace Vehicle F-1423
REPORT IN BRIEF
Considers approving the purchase of one (1) 2027 Chevrolet Tahoe 4WD in the amount of $79,014 plus a 10% contingency ($7,902) for a total not-to-exceed amount of $86,916, using the cost savings government procurement program (Sourcewell). The proposed purchase will replace aging fleet vehicles and is anticipated to improve fleet reliability, reduce ongoing maintenance costs, and enhance operational efficiency.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code section 3.04.210 and authorizing the purchase to be made with a cooperative purchase agreement through Sourcewell, a government procurement program; and,
B. Approving a supplemental appropriation from the unencumbered unreserved fund balance in Fund 7006-Fleet Replacement in the amount of $86,916 for replacement of Vehicle F1423; and
C. Approving the purchase of one (1) 2027 Chevrolet Silverado 4WD Tahoe in the amount of $79,013.39 from National Auto Fleet Group - Chevrolet of Watsonville, through Sourcewell contract # 091521-NAF; and,
D. Authorizing the City Manager to execute any necessary documents and the City Purchasing Supervisor to issue the Purchase Order/Change Order(s), and approval of change orders not to exceed 10% ($7,902) of the purchase price.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Municipal Code Section 3.04.210 - Exemptions from competitive bidding:
Except as otherwise provided in this chapter, competitive bidding requirements for purchases in excess of twenty-five thousand dollars ($25,000.00), the "bidding threshold”, may be waived with the approval of the city council. Waivers may be authorized for, but are not limited to, cooperative purchasing in conjunction with other governmental entities, professional services, annual service or supply agreements, or purchases necessary for standardization on particular types of equipment.
The bidding threshold shall be adjusted for inflation utilizing the same index and methodology as the bidding threshold in Section 3.04.080 of this code.
CITY COUNCIL PRIORITIES
Not applicable.
DISCUSSION
History
Sourcewell offers a nationwide cooperative purchasing program for equipment and vehicles available to government entities. Through this program, Sourcewell develops standardized specifications and solicits competitive bids for a wide range of equipment commonly used by local governments. Due to the nationwide scale of these solicitations, the City is able to acquire specialized equipment at significantly lower costs than would typically be achieved through the traditional process of developing specifications and conducting in-house bid solicitations.
Over the past several years, the City has successfully utilized the Sourcewell government procurement program to purchase a variety of equipment, including street sweepers, leaf trucks, fire trucks, and refuse trucks.
Purchasing this vehicle through the Sourcewell cooperative purchasing program requires waiving the City’s competitive bidding requirements. In addition to cost savings, direct purchasing through Sourcewell allows the City to standardize its vehicle equipment, which is a key objective of the Fleet Services Division. Standardization enables Fleet Services to reduce parts inventory and ensures consistent vehicle controls, handling, and maneuverability across the City’s fleet.
The City of Merced Fire Department, in coordination with the Fleet Services Division, is requesting that the City Council authorize the purchase of one (1) vehicle to replace one (1) Fire Support Vehicle, F-1423, utilizing the nationwide government procurement service Sourcewell via National Auto Fleet Group - Chevrolet of Watsonville.
The Fire Department’s support vehicle, F-1423, is 10 years old and has reached its intended service life of 10 years. This vehicle is critical for daily operations, including transporting personnel, equipment, tools, and supplies to emergency scenes, training sites, and maintenance locations. Due to its age and high mileage, it is experiencing increasing mechanical failures, higher maintenance costs, and reduced reliability. Breakdowns or delayed response of support vehicles can directly impact emergency operations, firefighter safety, and the department’s ability to sustain incident response.
Replacing aging equipment will improve operational reliability, reduce ongoing maintenance and repair expenses, and enhance safety for personnel. This new support vehicle will improve fuel efficiency, emissions compliance, and have updated safety features, which align with current regulatory standards and the City’s fleet management and sustainability goals. Replacing this aging vehicle is a cost-effective and risk-reducing investment that ensures the Fire Department can maintain efficient, safe, and dependable support service.
The vehicles requested for purchase in this report will meet the California Air Resources Board (CARB) vehicle air pollution rating.
Section 3.04.210 of the Merced Municipal Code authorizes the City Council to approve a waiver of the City’s competitive bidding requirements when purchases are made through cooperative purchasing programs in conjunction with other governmental entities.
Staff recommends waiving the bidding requirements to allow for equipment standardization and to take advantage of government contract pricing.
IMPACT ON CITY RESOURCES
A supplemental appropriation of $86,916 in Fund 7006 - Fleet Replacement is needed for the purchase of the Fire Department vehicles. Funding for the Fire Department is derived from annual state reimbursement revenues received when Fire Department personnel respond to mutual aid incidents.
Recommendation B requires five affirmative votes for City Council approval.
ATTACHMENTS
1. National Auto Fleet Group - Chevrolet of Watsonville - Quote
2. National Auto Fleet Group Sourcewell Contract Documentation
3. Sourcewell Contract Price Information
4. Sourcewell Membership