Report Prepared by: Wally Broughton, Public Works Manager - Operations
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements and Authorizing the Purchase of One Grapple Loader Truck Through a Cooperative Purchasing Agreement with Sourcewell via Municipal Maintenance Equipment (M.M.E.), Inc., for $278,604.48
REPORT IN BRIEF
Considers authorizing to waive the competitive bidding requirements pursuant to Merced Municipal Code Section 3.04.210 to purchase a currently budgeted and Council approved fleet vehicle through the 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 grapple loader truck in the amount of $278,604.48 from M.M.E., through Sourcewell contract # 40621-PII; and,
C. Authorizing the City Manager or the Deputy City Manager to execute any necessary documents for the purchases specified above, the Finance Officer to make the appropriate budget adjustments and City Buyer to issue the Purchase Orders, 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
Merced City Charter, Section 200. Municipal Code Section 3.04.210 - Exemptions from competitive bidding.
CITY COUNCIL PRIORITIES
As provided for in the 2022-23 Adopted Budget.
DISCUSSION
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 can 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 grapple truck utilizing the nationwide government procurement service Sourcewell via M.M.E., Inc.
This grapple truck is budgeted in the FY 22/23 adopted budget. This unit 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 to standardize equipment and utilize the government pricing contract.
IMPACT ON CITY RESOURCES
This vehicle is approved in the FY 2022/23 Council adopted budget; no additional funding is needed. The tree truck will be purchased using funds budgeted in Fund 558 - Refuse Enterprise.
ATTACHMENTS
1. M.M.E. Sales Quote
2. Sourcewell Certificate of Membership