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 Fleet Maintenance and Operations Through June 30, 2026
REPORT IN BRIEF
Considers approving the purchase of various parts, equipment, and supplies for Public Works maintenance and operations for Fiscal Year 2025/2026.
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 $50,000 with ARI Phoenix, Inc., dba ARI Hetra, through June 30, 2026; and,
C. Approving the purchase up to $200,000 with C&R Royal SVC, Inc., through June 30, 2026; and,
D. Approving the purchase up to $150,000 with Ferguson US Holdings, Inc., through June 30, 2026; and,
E. Approving the purchase up to $100,000 with Grainger through June 30, 2026; and,
F. Approving the purchase up to $300,000 with Horizon Distributors through June 30, 2026; and,
G. Approving the purchase up to $120,000 with McCain Traffic Supply (Swarco McCain) through June 30, 2026; and,
H. Approving the purchase up to $150,000 with Municipal Maintenance Equipment through June 30, 2026; and,
I. Approving the purchase up to $250,000 with Ray Gaskin through June 30, 2026; and,
J. Approving the purchase up to $60,000 with Pacific Landscape Supply, Inc., through June 30, 2026; and,
K. Approving the purchase up to $100,000 with Pazin & Myers, Inc., through June 30, 2026; and,
L. Approving the purchase up to $120,000 with YSI, Inc., through June 30, 2026; and,
M. 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 2025-26 Adopted Budget.
DISCUSSION
The City of Merced Public Works Department utilizes 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.
At the July 7, 2025 Council meeting, Council approved waiving competitive bidding and approving the purchase of various parts, equipment, and supplies for Public Works maintenance and operations for Fiscal Year 2025/2026, 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, 2026.
Listed below are typical parts, supplies, materials, and services purchased from each vendor:
Multiple City Divisions:
• Horizon Distributors (increase amount from $200,000 to $300,000)
o Irrigation and landscape equipment, materials, and supplies.
• Ferguson US Holdings, Inc. (increase amount from $100,000 to $150,000)
o Waterline appurtenances, plumbing supplies, etc.
• Grainger (increase amount from $75,000 to $100,000)
o An assortment of small tools, equipment, and products used in daily public works operations including valves, tubing, etc.
Fleet Division:
• ARI Phoenix, Inc., dba ARI Hetra (not on previous report; requesting $50,000)
o Vehicle parts and other consumables for the continued maintenance of City equipment; heavy duty lift inspections.
• C&R Royal SVC, Inc. (increase amount from $140,000 to $200,000)
o Vehicle parts (filters, windshield wipers, etc.), oils/lubricants, and other consumables for the continued maintenance of City vehicles and equipment.
• Municipal Maintenance Equipment (increase amount from $80,000 to $150,000)
o Vehicle parts and vehicle repair/parts installation services.
• Ray Gaskin (increase amount from $110,000 to $250,000)
o Vehicle parts and vehicle repair/parts installation services.
• Pazin & Myers, Inc. (not on previous report; requesting $100,000)
o Hydraulic oil for equipment.
Parks/Trees Division:
• Pacific Landscape Supply, Inc. (not on previous report; requesting $60,000)
o Playground fill material (fiber).
Streets Division:
• McCain Traffic Supply dba Swarco McCain (increase amount from $75,000 to $120,000)
o Traffic signal components
WWTP Division:
• YSI, Inc. (increase amount from $90,000 to $120,000)
o Turbidity meters, probes, and related equipment.
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 2025-26 budget.
ATTACHMENTS
1. PW Admin Report July 7, 2025