Report Prepared by: Dan Arnold, Public Works Manager - Operations
Title
SUBJECT: Approval of the Purchase of a Schwarze Street Sweeper and Two Vermeer Brush Chippers Appropriation Through the National Joint Powers Alliance Government Procurement Program; Waiver of the Competitive Bidding Requirement and Supplemental Budget Appropriation
REPORT IN BRIEF
Considers approving the purchase of a new Schwarze Street Sweeper and Two Vermeer Chippers through the government procurement program National Joint Powers Alliance; authorizes a supplemental appropriation from the Fleet Capital Replacement Fund to purchase the new brush chipper and authorizes a waiver of the competitive bidding requirement for the purchases.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a supplemental appropriation from the unappropriated, unreserved fund balance of Capital Fleet Replacement Fund 674 in the amount of $55,506 for the purchase of one new brush chipper, and;
B. Waiving the City’s competitive bidding requirement to purchase two brush chippers and one new street sweeper through the National Joint Powers Alliance (NJPA), and;
C. Authorizing the City’s Interim Finance Officer to make the appropriate budget adjustments and City Buyer to issue the Purchase Orders.
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
Merced City Charter, Section 200. Municipal Code Section 3.04.210 - Exemptions from competitive bidding.
CITY COUNCIL PRIORITIES
Operational Sustainability
DISCUSSION
National Joint Powers Alliance (NJPA):
The Public Works Department, Fleet Services Division, is requesting Council authorize the purchase of two new Vermeer brush chippers and one new Schwarze street sweeper utilizing the nationwide government procurement services National Joint Powers Alliance (NJPA). The NJPA offers equipment procurement programs to government entities nationwide; specifications are created and Request for Bids are sought by the respective program for a wide variety of equipment used by local governments. The City has utilized such programs to purchase a variety of equipment including street sweepers, leaf trucks, backhoes, etc. for the last several years with great success.
As a result of the nationwide scope of these programs, the City is able to purchase large specialized equipment for much less than the more traditional method of creating specifications and soliciting bids in-house. None of the equipment being requested in this report is available from local vendors.
Buying the street sweeper and two brush chippers directly through NJPA programs requires waiving the City’s competitive bid requirements. In addition to cost savings, purchasing directly from the NJPA also allows the city to standardize equipment. The Fleet Services Division desires to standardize equipment in order to reduce parts inventory and ensure the vehicle controls, handling, and maneuvering are the same for vehicles that are being used by City employees. The street sweeper and brush chippers requested will be the same make and model as other akin City equipment.
Equipment Replacement:
One brush chipper and a street sweeper were approved for purchase in the FY 17/18 budget as replacements; however, a second chipper recently encountered a major engine failure and needs replacement. It is not cost effective to replace the engine for this chipper since it is near the end of the service life and currently scheduled for replacement in FY 18/19.
The brush chipper dealer, Vermeer RDO Equipment Co. of Fowler California, is offering NJPA pricing at $62,752.61 per chipper. Buying the two chippers through the NJPA contract will save the City $18,188.00 (see attachment 1 - RDO Vermeer Chipper Quote).
The FY 17/18 adopted budget included $70,000 to replace one brush chipper; with the NJPA pricing above, the remaining $7,247.39 can be used towards the purchase of the second chipper. An appropriation from the Fleet Capital Replacement Fund 674 in the amount of $55,506 would be needed to augment the second chipper purchase.
The FY 17/18 budget also includes funding for the replacement of one street sweeper. Municipal Maintenance Equipment (MME), the NJPA dealer for Schwarze Street Sweepers, is offering government pricing of $287,707.93. The NJPA pricing will save the city $3,868.85 (see attachment 2 - MME Sweeper Quote).
All equipment requested for purchase in this report will meet the California Air Resources Board (CARB) Tier IV final clean air vehicle pollution rating. Both MME and Vermeer RDO Equipment Co. have provided excellent product support and service for existing equipment.
Sufficient funds exist within the Fleet Capital Replacement Fund balance for these purchases. Staff requests waiving the bidding requirements in order to standardize equipment and utilizing the government pricing contract.
IMPACT ON CITY RESOURCES
Requires an appropriation of $55,506 from the Fleet Capital Replacement Fund/Account 674-1103-633.63-00 for the purchase of one Vermeer Brush Chipper model BC1500.
ATTACHMENTS
1. RDO Vermeer Chipper Quote
2. MME Sweeper Quote
3. NJPA Certificate