Report Prepared by: Cosmo Ordunez, Public Works Manager-Internal Services
Title
SUBJECT: Approval to Purchase Two (2) 2025 Chevrolet Silverado 1500 4WD Crew Cab Work Trucks From National Auto Fleet Group - Chevrolet of Watsonville, in the Amount of $53,621.61 and $62,525.18 for a Total Amount of $116,146.79 for the Sewer Division and the Wastewater Treatment Plant to Replace Vehicles E-1372 & E-1363
REPORT IN BRIEF
Considers approving the purchase of two (2) 2025 Chevrolet Silverado 1500 4WD Crew Cab Trucks in the total amount of $116,146.79 utilizing the cost savings government procurement program (Sourcewell). The purchase of the new vehicles will replace aging equipment that will improve reliability, reduce maintenance costs, and increase efficiency in daily operations.
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 two (2) 2025 Chevrolet Silverado 1500 4WD Crew Cab Trucks in the total amount of $116,146.79 from National Auto Fleet Group - Chevrolet of Watsonville, through Sourcewell contract # 091521-NAF; 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 25/26 Adopted Budget.
DISCUSSION
History
Sourcewell offers an equipment/vehicle purchase program to government entities nationwide; specifications are created, and Request 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 including, street sweepers, leaf trucks, fire trucks, refuse trucks, etc. through the Sourcewell government procurement program with great success.
Buying these vehicles directly through this outside program requires waiving the City’s competitive bid requirements. In addition to cost savings, purchasing directly from Sourcewell allows the City to standardize equipment, which is a desire of the Fleet Services Division. With standardized equipment, Fleet Services will have the ability to reduce parts inventory, and ensure the vehicle controls, handling, and maneuvering are the same for vehicles that are currently being used by City employees. The vehicles requested will be the same make and model as other City equipment.
The Public Works Department, Fleet Services Division, is requesting Council authorize the purchase of two (2) currently budgeted fleet vehicles to replace one (1) Sewer Division work truck and one (1) Wastewater Treatment Facility vehicle, utilizing the nationwide government procurement service Sourcewell via National Auto Fleet Group - Chevrolet of Watsonville.
Replacing aging equipment is essential to the Sewer & Wastewater Treatment operation because it ensures reliable service, reduces costly breakdowns and downtime, improves safety for staff, and supports more efficient and sustainable operation.
The listed vehicles to be purchased is budgeted in the FY 25/26 vehicle replacement adopted budget. The vehicles requested for purchase in this report will meet the California Air Resources Board (CARB) air vehicle pollution rating.
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.
Staff requests waiving the bidding requirements in order to standardize equipment and utilize the government pricing contract.
IMPACT ON CITY RESOURCES
These vehicles were approved in the FY 2025/26 adopted budget in Fund 7006-Vehicle Replacement in the amount of $80,000, and $70,000, for a total budgeted amount of $150,000. No additional funding is needed for the 10% contingency.
ATTACHMENTS
1. National Auto Fleet Group - Chevrolet of Watsonville - Quotes
2. National Auto Fleet Group Sourcewell Contract Documentation
3. Sourcewell Membership