Report Prepared by: Ken F. Elwin, PE, Director of Public Works
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements, Approve Agreements for Supplies and Services for the Purchase of Aggregate Base, Fill Sand, and Related Materials with Central Valley Concrete dba Central Valley Trucking, in the Amount not to Exceed $40,000, Supply and Delivery of Electrical/Mechanical Parts and Repair/Installation Services with Modesto Industrial Electrical Company, Inc., in the Amount not to Exceed $60,000, Supply and Delivery of Various Vehicle Parts and Vehicle Repair/Parts Installation Services with Ruckstell California Sales, Inc., in the Amount not to Exceed $85,000, with the Contracts’ Terms Ending June 30, 2022, and Allow the City to Piggyback onto an Existing Contract for Automotive Parts and Supplies Through the National Cooperative Purchasing Alliance (NCPA) Awarded Contract with O’Reilly Auto Enterprises, LLC dba O’Reilly Auto Parts in an Amount not to Exceed $60,000 Annually
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 aggregate base and related materials, electrical/mechanical parts and services, and vehicle parts and repair services, as well as allows for piggybacking onto a NCPA awarded contract for automotive parts and supplies.
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,
B. Approving an Agreement for Supplies and Services with Central Valley Concrete dba Central Valley Trucking, in the amount not to exceed $40,000; and,
C. Approving the Agreement for Supplies and Services with Modesto Industrial Electrical Company, Inc., in the amount not to exceed $60,000; and,
D. Approving the Agreement for Supplies and Services with Ruckstell California Sales, Inc., in the amount not to exceed $85,000; and,
E. Approving piggybacking onto the National Cooperative Purchasing Alliance contract with O’Reilly Auto Enterprises, LLC dba O’Reilly Auto Parts expiring on November 30, 2022 with the option to renew through November 30, 2024 in the amount not to exceed $60,000 per fiscal year; and,
F. 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 Public Works Department utilizes multiple vendors for the purchase of aggregate base, fill-sand, and related roadway materials, automotive parts and services, as well as electrical/mechanical parts and services. These materials and services are needed for regular maintenance, unforeseen repair work, or work related to vehicle accidents that damage City infrastructure.
The Public Works Streets, Fleet, Facilities, and Water Divisions perform in-house maintenance and repair work related to the materials referenced above. However, occasionally due to staffing or specialty repair work needed for specific projects, these services may be outsourced to the various vendors.
The Public Works Department 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, as well as allow piggybacking on the NCPA agreement for automotive parts and supplies. 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. Central Valley Concrete dba Central Valley Trucking Agreement
2. Modesto Industrial Electrical Company, Inc. Agreement
3. Ruckstell California Sales, Inc Agreement
4. O’Reilly Auto Enterprises, LLC dba O’Reilly Auto Parts Agreement