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 $378,777.48 for the Refuse Department
REPORT IN BRIEF
Considers approving the purchase of one 2026 Peterbilt 520 truck with NewWay Mammoth Front End Loader body in the amount of $378,777.48 utilizing the cost savings government procurement program (Sourcewell). The purchase of the additional vehicle was identified in the prior rate study for growth of the refuse collection operation.
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 $378,777.48 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 24/25 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 add a Front Loader Refuse vehicle, utilizing the nationwide government procurement service Sourcewell via Interstate Truck Center/Valley Peterbilt. This vehicle purchase was included as part of the prior rate study to add additional refuse vehicles for growth of the refuse collection operation. This purchase will allow the Refuse Department to add a commercial recycle collection route as the current commercial recycle route is at full capacity. With the current backup truck-to-route ratio, the division cannot create a new commercial route without purchasing an additional front loader truck. This additional route is in effort to stay in compliance with CalRecycling and State recycling law AB 341. Once the order has been placed, the estimated delivery of the new truck will take approximately 12-18 months. The front loader truck has a projected 10-year replacement cycle.
The listed vehicle to be purchased is budgeted in the FY 24/25 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 2024/25 adopted budget in Fund 7006-Vehicle Replacement. This is not a replacement and funds were included to be transferred from Fund 6002-Refuse Operations for the purchase. No additional appropriation is needed.
ATTACHMENTS
1. Interstate Truck Center - Valley Peterbilt Quote
2. Peterbilt Sourcewell Contract Documentation
3. Sourcewell Contract Price Information
4. Sourcewell Membership