Report Prepared by: Cosmo Ordunez, Public Works Manager-Internal Services
Title
SUBJECT: Approval to Purchase One (1) New Front Loader Refuse Truck, and Necessary Attachment Equipment, From Interstate Truck Center - Valley Peterbilt, in the Amount of $384,392.95 for the Refuse Department to Replace Vehicle E-1401
REPORT IN BRIEF
Considers approving the purchase of one 2026 Peterbilt 520 truck with NewWay Mammoth Front End Loader body in the amount of $384,392.95 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 2026 Peterbilt 520 truck with NewWay Mammoth Front End Loader body in the amount of $384,392.95 from Interstate Truck Center - Valley Peterbilt, through Sourcewell contract # 032824-PMC; 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 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 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 vehicle 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 a Front Loader Refuse vehicle, utilizing the nationwide government procurement service Sourcewell via Peterbilt Motors Company through Interstate Truck Center/Valley Peterbilt. Replacing aging equipment is essential to the Refuse Division’s operation because it ensures reliable service, reduces costly breakdowns and downtime, improves safety for staff, and supports more efficient and sustainable waste collection.
The listed vehicle to be purchased is budgeted in the FY 25/26 vehicle replacement adopted budget. 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
This vehicle was approved in the FY 2025/26 adopted budget in Fund 7006-Vehicle Replacement in the amount of $500,000. No additional appropriation is needed.
ATTACHMENTS
1. Interstate Truck Center - Valley Peterbilt Quote
2. Sourcewell Certificate of Membership
3. Peterbilt Sourcewell Contract Documentation