Report Prepared by: Wally Broughton, Public Works Manager - Operations
Title
SUBJECT: Approval of a Supplemental Appropriation in the Amount of $29,000 from the Fleet Capital Replacement Fund 674 for the Purchase of a Striping Machine, Approval to Waive the Competitive Bidding Requirements and Authorization for the Purchase of Two (2) Budgeted Fleet Vehicles, Depending on Availability, Through Cooperative Purchasing Agreements with Sourcewell, Including One Front-Loader Refuse Truck for $330,784.01 from Ruckstell California Sales Co., Inc., and One Truck-Mounted Striping Machine for $228,971.46 from EZ Liner
REPORT IN BRIEF
Considers appropriating an additional $29,000 from the Fleet Capital Replacement Fund and authorizing waiving competitive bidding requirements pursuant to Merced Municipal Code Section 3.04.210 to purchase currently budgeted and Council approved fleet vehicles 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 to utilize cooperative purchasing agreements through Sourcewell, a government procurement program; and,
B. Approving a supplemental appropriation in the amount of $29,000 from the unreserved, unencumbered fund balance of Fund 674-Fleet Replacement Fund to account line 674-1103-633.63-00, project 243104 for the purchase of a striping machine; and,
C. Approving the purchase of one front-loader refuse truck in the amount of $330,784.01, from Ruckstell California Sales Co., Inc., through Sourcewell contract # 091219-NWY; and,
D. Approving the purchase of one truck-mounted striping machine in the amount of $228,971.46 from EZ Liner through Sourcewell contract # 080521-EZL; and,
E. 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 2021-22 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.
Buying these vehicles directly through this outside program requires waiving the City’s competitive bid requirements. In addition to cost savings, purchasing directly through 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 two currently budgeted fleet vehicles, including one refuse truck, and one truck-mounted striping machine, utilizing the nationwide government procurement service Sourcewell via Ruckstell California Sales Co. and EZ Liner respectively.
All listed vehicles to be purchased are budgeted in the FY 21/22 adopted budget. All vehicles 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 to standardize equipment and utilize the government pricing contract.
IMPACT ON CITY RESOURCES
The vehicles were approved in the FY 2021/22 Council adopted budget. The refuse truck will be purchased using funds budgeted in Fund 558 - Refuse Enterprise, no additional funding is required.
A $200,000 was budgeted; however, an additional $29,000 appropriation is needed to purchase the striping truck out of Fund 674-1103 Fleet Replacement.
ATTACHMENTS
1. Ruckstell Ca. Sales Quote (Front Loader Refuse Truck)
2. EZ Liner Sales Quote (Truck-Mounted Striping Machine)
3. Sourcewell Certificate of Membership