Report Prepared by: Cosmo Orduñez, Public Works Manager-Internal Services
Title
SUBJECT: Approval to Purchase One (1) New Vermeer Brush Chipper, Model BC1500, in the Amount of $98,030.10, and One (1) New Vermeer Stump Grinder, Model SC802 and Necessary Attachment Equipment in the Amount of $90,739.59 from RDO Equipment Co., for the Trees Division to Replace R-1366 and R-1065
REPORT IN BRIEF
Considers approving the purchase of one (1) 2026 Vermeer Brush Chipper, Model BC1500, in the amount of $98,030.10, and one (1) 2026 Vermeer Stump Grinder, Model SC802, in the amount of $90,739.59, utilizing the cost savings government procurement program (Sourcewell). The purchase of the new units 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 one (1) 2026 Vermeer Brush Chipper, Model BC1500 in the amount of $98,030.10, and one (1) 2026 Vermeer Stump Grinder, Model SC802, in the amount of $90,739.59, from RDO Equipment Co., through Sourcewell contract # 010925-VRM; 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 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.
The Public Works Department, Fleet Services Division, is requesting Council authorize the purchase of two currently budgeted fleet pieces of equipment to replace one (1) Vermeer Brush Chipper, Model BC1500, and one (1) Vermeer Stump Grinder, Model SC802, utilizing the nationwide government procurement service Sourcewell via RDO Equipment Co. (authorized dealer of Vermeer Corporation).
Both pieces of equipment are utilized daily by the Tree Division to support the City’s urban forestry program, vegetation management operations, and public safety responsibilities. These specialized pieces of equipment are utilized daily for tree trimming, tree removals, storm response, right-of-way maintenance, and maintaining safe clearances along streets, sidewalks, parks, public facilities, and utility corridors throughout the City.
The existing brush chipper (R-1366) and stump grinder (R-1065) have reached the end of useful service life of 12 to 20 years, and are experiencing increasing maintenance costs, reduced reliability, and more frequent equipment downtime. As these units age, repairs become more costly and replacement parts become more difficult to obtain, resulting in operational disruptions and reduced productivity for field crews. Equipment failures can delay scheduled tree maintenance activities, increase labor costs, and hinder the City’s ability to respond promptly to storm events and emergency cleanup operations.
Replacing the existing equipment with updated models will maintain equipment standardization with the City’s fleet, allowing staff to continue utilizing familiar operating procedures, maintenance practices, and replacement parts inventories. The new chipper will improve operational reliability, reduce maintenance expenditures, enhance employee safety through updated safety systems and controls, and increase productivity by minimizing downtime associated with aging equipment.
The listed equipment to be purchased is budgeted in the FY 26/27 vehicle replacement adopted budget. The equipment requested for purchase in this report will meet the California Air Resources Board (CARB) emissions standards, supporting the City’s commitment to maintaining an environmentally responsible and 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.
Staff requests waiving the bidding requirements in order to standardize equipment and utilize the government pricing contract.
IMPACT ON CITY RESOURCES
This vehicle was approved in the FY 2026/27 adopted budget in Fund 7006-Vehicle Replacement, project #VR276050 in the amount of $210,000. No additional appropriation is needed.
ATTACHMENTS
1. RDO Equipment Co. Quotes
2. Vermeer Sourcewell Contract Documentation
3. Sourcewell Membership Documentation