Report Prepared by: Cosmo Ordunez, Public Works Manager-Internal Services
Title
SUBJECT: Approval to Purchase One (1) 2027 Freightliner M2-106 4x2 Chassis with a Load King 19-70 Crane Body, and Necessary Attachment Equipment, from Custom Truck One Source, Inc., for $340,326.00 as a Replacement Unit for the Water Division’s Crane Truck, W-1026
REPORT IN BRIEF
Considers approving the purchase of one (1) 2027 Freightliner M2-106 4x2 Chassis with a Load King 19-70 Crane Body, and necessary Attachment Equipment, from Custom Truck One Source, Inc., for $340,326.00 utilizing the cost savings government procurement program (Sourcewell). This purchase was included in the FY 26/27 budget as a vehicle replacement for the Water Division.
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 the purchase of one (1) 2027 Freightliner M2-106 4x2 Chassis with a Load King 19-70 Crane Body, for $340,326.00, from Custom Truck One Source, Inc., through Sourcewell Altec Industries, Inc., Contract # 091125-CUK; and,
C. Authorizing the City Manager to execute any necessary documents for the purchase specified above; and,
D. Authorizing the issuance of the Purchase Order and approval of change orders not to exceed 10% of the total 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.
CITY COUNCIL PRIORITIES
As provided for in the FY 26/27 Adopted Budget.
DISCUSSION
History
Sourcewell offers an equipment/vehicle purchase program to government entities nationwide; specifications are created, and Requests for Bids are sought by Sourcewell for a wide variety of equipment used by local governments. As a result of the nationwide scope of these programs, the City is able to purchase specialized equipment for much less than the more traditional method of creating specifications and soliciting bids in-house.
Over the last several years, the City has purchased a variety of equipment not provided by local vendors, including street sweepers, leaf trucks, fire trucks, refuse trucks, etc., through the Sourcewell government procurement program with great success.
The Public Works Department, Fleet Services Division, is requesting Council authorize the purchase of one currently budgeted fleet vehicle for the Water Division utilizing the Sourcewell cooperative purchasing program. The proposed vehicle is a 2027 Freightliner M2-106 4x2 chassis equipped with a Load King 19-70 Crane Body and necessary attachment equipment. The purchase will replace the Water Division’s existing crane truck, W-1026, which is no longer a viable fleet asset due to the extent and cost of required repairs. The anticipated repair costs exceed the current value of the vehicle, making continued investment in the existing truck economically impractical.
The crane truck is a specialized and essential piece of equipment that will provide the Water Division with the ability to safely lift, transport, position, and install heavy materials and equipment associated with water system maintenance and repair. The vehicle will support routine and emergency operations involving water infrastructure, including the handling of pumps, valves, pipes, fittings, manhole components, and other heavy equipment that cannot be safely moved or positioned using conventional service vehicles.
The crane truck will also provide valuable support to other Public Works Divisions when specialized lifting and material-handling capabilities are needed. Its availability can assist with projects involving heavy equipment, infrastructure components, construction materials, and other items that require crane-assisted loading, unloading, or placement. Maintaining this capability within the City’s fleet reduces the need to rely on outside contractors or borrow specialized equipment from other agencies, allowing Public Works crews to respond more efficiently to operational needs and emergencies.
The new crane truck will improve operational reliability, reduce unplanned downtime, enhance employee safety through modern equipment and features, and improve the City’s ability to complete work in a timely manner. Having a reliable crane truck available within the City’s fleet is especially important for the Water Division, where timely access to specialized equipment can directly affect the City’s ability to respond to water system repairs and other infrastructure needs.
The listed vehicle to be purchased is budgeted in the FY 26/27 adopted budget as a vehicle replacement. The vehicle requested for purchase in this report will meet the California Air Resources Board (CARB) emission requirements, supporting the City’s efforts to maintain a cleaner and more sustainable fleet.
Section 3.04.210 of the Merced Municipal Code provides that the City Council can approve a waiver of the City’s competitive bidding requirements when such purchases are made pursuant to cooperative purchasing in conjunction with other governmental entities.
IMPACT ON CITY RESOURCES
The vehicle was approved in the FY 26-/27 adopted budget in Fund 7006-Fleet Replacement. No additional appropriation of funds is needed.
ATTACHMENT
1. Custom Truck One Source, Inc., Quote
2. Custom Truck One Source, Inc., Sourcewell Contract Information
3. Custom Truck One Source, Inc., Sourcewell Pricing