Report Prepared by: Chris Yowell, Acting Public Works Manager - Internal Services
Title
SUBJECT: Approval to Authorize the City Manager to Issue a Purchase Order to Vac-Con, Inc., for the Purchase of One (1) Vac-Con Truck in the Amount of $716,975.11 as a Vehicle Replacement for the Water Department
REPORT IN BRIEF
Staff has identified an opportunity to replace a vehicle, which will assist in the standardization of equipment through the cost savings of a government procurement program (Sourcewell).
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 Vac-Con Truck in the amount of $716,975.11 from Vac-con, Inc., through Sourcewell contract # 101221-VAC replacing vehicle W-1407; and,
C. Authorizing the City Manager to execute any necessary documents for the purchase specified above; and,
D. Authorizing the Finance Officer to make the appropriate budget adjustments; and,
E. Authorizing the City Buyer to issue 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 24/25 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 not provided by local vendors 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 one currently budgeted fleet vehicle to replace vehicle W-1407 utilizing the nationwide government procurement service Sourcewell via Vac-con, Inc.
The listed vehicle to be purchased is budgeted in the FY 24/25 adopted budget as a vehicle replacement. The vehicle requested for purchase in this report will meet the California Air Resources Board (CARB) Tier IV final clean 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 through the cost savings of the government pricing contract.
IMPACT ON CITY RESOURCES
The vehicle was approved in the FY 2024/25 Council adopted budget, Fund 7006 - Fleet Replacement. The budget included $550,000 that had been accumulated from the Water Division for the replacement of the vehicle. Since additional funding was needed there was an additional one-time transfer included in the budget of $250,000 for a total budget of $750,000 to replace this vehicle.
ATTACHMENT
1. MME/Vac-con Quote
2. Sourcewell Certificate of Membership