Report Prepared by: Cosmo Ordunez, Public Works Manager-Internal Services
Title
SUBJECT: Approval to Purchase One (1) 2027 PBLDB-10 Dump Truck for $234,269.98 for the Street Division as a New Acquisition from PB Loader, and One (1) MDD5-6 Dump Truck for $178,795.55 for the Wastewater Treatment Plant to Replace E-1179, with all Necessary Attachment Equipment, from Altec Industries, Inc
REPORT IN BRIEF
Considers approving the purchase of one (1) 2027 PBLDB-10 Dump Truck for $234,269.98, and one (1) MDD5-6 Dump Truck for $178,795.55 utilizing the cost savings government procurement program (Sourcewell). This purchase was included in the FY 26/27 adopted budget as a vehicle replacement for the Street Division.
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 (1) 2027 PBLDB-10 Dump Truck for $234,269.98 from PB Loader, through Sourcewell Contract # 050625-PBL, and one (1) MDD5-6 Dump Truck for $178,795.55 from Altec Industries, Inc., through Sourcewell Altec Industries, Inc. Contract # 110421-ALT; and,
C. Authorizing the City Manager to execute any necessary documents for the purchase specified above; and,
D. Authorizing the issuance of the Purchase Order 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
Municipal Code Section 3.04.210 - Exemptions from competitive bidding.
CITY COUNCIL PRIORITIES
As provided for in the FY 26/27Adopted Budget.
DISCUSSION
History
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 is able to 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.
The Public Works Department is requesting authorization to purchase two dump trucks through the Sourcewell cooperative purchasing contract with Altec Industries, Inc. The proposed purchase includes one (1) 2027 PBLDB-10 Dump Truck for the Street Division and one (1) MDD5-6 Dump Truck for the Wastewater Treatment Plant.
The Street Division’s responsibilities continue to grow as the City expands and infrastructure ages. Staff is responsible for maintaining and repairing streets, sidewalks, curb and gutter, storm drainage, systems, traffic control devices, signs, and other public right-of-way infrastructure throughout the City. Dump Trucks are essential pieces of equipment used daily to transport asphalt, aggregate, soil, concrete, debris, and other materials required for maintenance and repair activities. Adding an additional dump truck to the Street Division fleet will improve operational efficiency by allowing multiple crews to work simultaneously, reducing delays caused by equipment availability, and increasing the Division’s ability to respond to routine maintenance needs, emergency repairs, and storm-related events. The additional vehicle will enhance productivity, support timely completion of work orders, and help the Division meet its objective of maintaining safe and reliable streets and public infrastructure for the community.
The proposed purchase also includes replacing an 18-year-old dump truck, E-1179, currently assigned to the Wastewater Treatment Plant. The dump truck is a critical asset used to transport soil, gravel, construction materials, biosolids, and other equipment necessary to maintain and repair treatment plant facilities and supporting infrastructure. Replacing this aging vehicle will improve reliability, reduce maintenance costs and service interruptions, increase employee safety through modern equipment and safety features, and ensure Wastewater Treatment Plant staff have dependable equipment to efficiently perform essential maintenance and operational activities.
Both vehicles were included in the FY 26/27 adopted budget. In addition to improving operational reliability and efficiency, the new dump trucks will comply with current California Air Resources Board (CARB) emission standards, supporting the City’s efforts to maintain a cleaner and more sustainable fleet.
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 in order to standardize equipment and utilize the government pricing contract.
IMPACT ON CITY RESOURCES
The vehicles were approved in the FY 26/27 adopted budget in Fund 7006-Fleet Replacement Fund to replace E-1179 for the Wastewater Treatment Plant dump truck, and Measure C-Roads funded the acquisition of the Street Division’s new dump truck. No additional appropriation of funds is needed.
ATTACHMENT
1. PB Loader Quote
2. Altec Industrial, Inc., MDD7 Quote
3. Altec Sourcewell Contract Extension
4. Altec Sourcewell Pricing
5. Altec Industrial, Inc., Sourcewell Contract Information
6. PB Loader Sourcewell Contract Information
7. PB Loader Sourcewell Pricing