Report Prepared by: Ken F. Elwin, PE, Public Works Director
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements and Approve Purchases of Parts, Equipment, Supplies, and Services Necessary for Public Works Maintenance and Operations from Hach Company, Inc. in the Amount not to Exceed $100,000; and with Trojan Technologies Group, LLC in the Additional Amount not to Exceed $100,000, for a Total Purchase Amount of $250,000 Through 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 the purchase of various parts, equipment, supplies, and services for Public Works maintenance and operations.
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 supplies and services agreements; and,
B. Approving the purchase of various laboratory supplies and equipment, as well as annual maintenance or repair services for related equipment from Hach Company, Inc., in the amount not to exceed $100,000 in Fiscal Year 2021/2022; and,
C. Approving the purchase of UV lamps and related equipment, parts, and supplies from Trojan Technologies Group, LLC, in the additional amount not to exceed $100,000, for a total contract amount of $250,000 in Fiscal Year 2021/2022; and,
D. Authorizing the City Manager or the Deputy City Manager, to execute the necessary documents or contracts that are approved as to form by the City Attorney, and/or City Buyer to issue the purchase orders.
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 various parts, equipment, materials, supplies and services. These supplies and services are essential to daily operations and may be for ongoing maintenance, unforeseen repair work, or in response to an accident that damages City infrastructure.
Listed below are typical parts, supplies, and materials purchased from each vendor:
• Hach Company, Inc. ($100,000 total)
o Laboratory supplies and equipment, including annual maintenance or repair services for use at the Wastewater Treatment Facility and for the City’s Water Department.
• Trojan Technologies Group, LLC ($250,000 total)
o UV lamps and related parts for use at the Wastewater Treatment Facility.
The Public Works Department is requesting Council waive competitive bidding requirements to allow for the continued purchase of various parts, equipment, materials, supplies and services used in ongoing Public Works maintenance and operations.
Purchase authority over the threshold needs to be approved by the City Council. These supplies and services will exceed threshold of the City Manager’s authority soon and are needed for continuity of operations. Agreements are still being negotiated with the vendors. The recommendation allows the City Manager to execute these contracts as long as the City Attorney has approved as to form.
HISTORY AND PAST ACTIONS
On September 7, 2021, Council approved the purchase of equipment, parts, and supplies from Trojan Technologies Group, LLC, in the amount not to exceed $150,000 in Fiscal Year 2021/2022.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed; funding is available within the FY 2021/2022 adopted budget.