Report Prepared by: Cosmo Ordunez, Public Works Manager-Internal Services
Title
SUBJECT: Approval Purchase One (1) New Kubota Skid Steer Loader, Compact Construction Equipment, Model SSV75HFRC, and Necessary Attachment Equipment from Garton Tractor, Inc., in the Amount of $72,003.89 as a Vehicle Replacement for E-1199 for the Water Division
REPORT IN BRIEF
Considers approving the purchase of one Kubota Skid Steer Loader, Model SSV75HFRC, in the amount of $72,003.89 utilizing the cost savings government procurement program (Sourcewell). The purchase of the new vehicle will replace aging equipment that will improve reliability, reduce maintenance costs, and increase efficiency in daily 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 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 Kubota Skid Steer Loader, Model SSV75HFRC, in the amount of $72,003.89 from Garton Tractor, through Sourcewell Kubota contract # 112624-KBA; 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 2025/2026 Adopted 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.
Buying these vehicles directly through this outside program requires waiving the City’s competitive bid requirements. In addition to cost savings, purchasing directly from 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 equipment 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 one currently budgeted fleet vehicle to replace aging equipment E-1199, utilizing the nationwide government procurement service Sourcewell via Kubota Tractor Corporation through Garton Tractor.
Purchasing a Kubota Skid Steer Loader will enhance the Water Division’s operational efficiency by providing versatile, reliable equipment for material handling, road maintenance, and debris removal. Its compact design and powerful performance will allow crews to work more effectively in tight spaces while reducing project completion times.
The listed vehicle to be purchased is budgeted in the FY 25/26 adopted budget as a replacement vehicle acquisition. The vehicle 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 in order to standardize equipment and utilize the government pricing contract.
IMPACT ON CITY RESOURCES
The vehicle was approved in FY25-26 adopted budget in Fund 7006-Vehicle Replacement in the amount of $85,000. No additional appropriation is needed.
ATTACHMENTS
1. Garton Tractor - Quote (Kubota Sourcewell Pricing)
2. Sourcewell Certificate of Membership
3. Kubota Sourcewell Contract Documents