Report Prepared by: Wally Broughton, Public Works Manager - Operations
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements and Approve Agreements for Supplies and Services for the Purchase of Various Vehicle Parts and Repair/Installation Services with Merced Truck & Trailer, Inc., in the Amount not to Exceed $100,000, with Next Level Parts, Inc., dba Carquest of Merced in the Amount not to Exceed $60,000, and with Ron Smith Buick GMC, LP, in the Amount not to Exceed $70,000, with the Contracts’ Terms Ending June 30, 2022
REPORT IN BRIEF
Considers waiving the City’s competitive bidding requirements pursuant to Merced Municipal Code Section 3.04.210 and approving three (3) separate Supply and Service Agreements for the purchase of various vehicle parts, as well as vehicle repair and parts installation services for Fiscal Year 2021/2022.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code Section 3.04.210 for annual service and supply agreements; and,
B. Approving an Agreement for Supplies and Services with Merced Truck & Trailer, Inc., in the Amount not to Exceed $100,000; and,
C. Approving an Agreement for Supplies and Services with Next Level Parts, Inc., dba Carquest of Merced in the Amount no to Exceed $60,000; and,
D. Approving an Agreement for Supplies and Services with Ron Smith Buick GMC, LP, in the Amount not to Exceed $70,000; and,
E. Authorizing the City Manager or the Deputy City Manager, to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions 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
City of Merced Charter 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
As provided for in the FY 2021/2022 adopted budget.
DISCUSSION
The City of Merced Fleet Services Division utilizes multiple vendors for the purchase of various vehicle parts. These parts may include regular maintenance consumable items, such as air filters, oil filters, brake components, hoses, and belts. These parts may be more specific or one-time purchases needed for repair work or unforeseen breakdowns of older vehicles, such as replacing engines, transmissions, E.C.M units, and hydraulic system components.
Parts installation and repair services are typically provided internally by the Fleet Services Division. However, there are some circumstances that require outsourcing of these services, such as an influx in downed vehicles or parts that require specialized tools. Fleet Services also performs all tire replacement services for the City’s fleet.
The Fleet Services Division is requesting Council waive competitive bidding requirements to allow for the annual supply and service agreements to be executed up to the listed threshold amounts. The agreements have been approved as to form by the City Attorney’s Office and funding is available within the FY 2021/2022 adopted budget.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed; funding is available within the FY 2021/2022 adopted budget.
ATTACHMENTS
1. Merced Truck & Trailer, Inc. Agreement
2. Next Level Parts, Inc., dba Carquest of Merced Agreement
3. Ron Smith Buick GMC, LP Agreement