Report Prepared by: Ken F. Elwin, PE, Director of Public Works
Title
SUBJECT: Approve the Purchase of Parts, Equipment, and Supplies as Necessary for Public Works Maintenance and Operations Through June 30, 2027
REPORT IN BRIEF
Considers approving waiving the City’s competitive bidding requirements pursuant to Merced Municipal Code Section 3.04.210, and the purchase of various parts, equipment, and supplies for Public Works maintenance and operations for Fiscal Year 2026/2027.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code Section 3.4.210 for annual supplies and services; and,
B. Approving the purchase up to $80,000 with Frank A Olsen Company through June 30, 2027; and,
C. Approving the purchase up to $80,000 with Howk Well & Equipment Co, Inc., through June 30, 2027; and,
D. Approving the purchase up to $75,000 with Rush Truck Center through June 30, 2027; and,
E. Approving the purchase up to $45,000 with Staples Business Advantage through June 30, 2027; and,
F. Approving the purchase up to $75,000 with Universal Automotive through June 30, 2027; and,
G. Approving the purchase up to $80,000 with USEMCO, Inc., through June 30, 2027; and,
H. Authorizing the 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 2026/2027 Adopted Budget.
DISCUSSION
The City of Merced Public Works Department uses multiple vendors for the purchase of various parts, equipment, materials, supplies, and limited 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.
On July 6, 2026, Council approved waiving competitive bidding and approving the purchase of various parts, equipment, and supplies for Public Works maintenance and operations for Fiscal Year 2026/2027, including some of the vendors listed within this report (ATTACHMENT 1). As the year has progressed, staff’s initial estimate of expenses has been revised to anticipate expenses through June 30, 2027.
Listed below are typical parts, supplies, materials, and services purchased from each vendor:
Multiple City Divisions:
• Staples Business Advantage (not on previous report; requesting $45,000)
o Various office supplies and related materials (printer ink, pens, etc).
Fleet Division:
• Rush Truck Center (not on previous report; requesting $75,000)
o Vehicle parts and installation/repair services.
• Universal Automotive (not on previous report; requesting $75,000)
o Vehicle and equipment tires.
WWTP Division:
• Frank A Olsen Company (not on previous report; requesting $80,000)
o Supplies and parts for UV channels at WWTP.
• Howk Well & Equipment Co, Inc. (increase amount from $65,000 to $80,000)
o Pumps, bearings, shafts, motors, and pipe fittings for equipment at the WWTP.
• USEMCO, Inc. (not on previous report; requesting $80,000)
o Supplies and parts for sewer lift stations.
Any purchase order issued for services will include a provision on the purchase order requiring the vendor to provide a valid quote delineating the costs for services and related supplies to complete the work.
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.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed. Funding is available within the Fiscal Year 2026/2027 budget.
ATTACHMENTS
1. PW Admin Report July 6, 2026