Report Prepared by: Cosmo Ordunez, Public Works Manager-Internal Services
Title
SUBJECT: Approval to Purchase Three (3) 2026 Chevrolet Trailblazers in the Total Amount of $95,994.63 to Replace Vehicles E-1300 and E-1302 for the Inspection Services Division and to Replace Vehicle E-1369 for the Recycling Division and Purchase One (1) 2026 Chevrolet Colorado in the Amount of $38,779.67 as a New Vehicle for the Refuse Department from National Auto Fleet Group - Chevrolet of Watsonville
REPORT IN BRIEF
Considers approving the purchase of three (3) 2026 Chevrolet Trailblazers in the total amount of $95,994.63, and one (1) 2026 Chevrolet Colorado in the amount of $38,779.67, utilizing the cost savings government procurement program (Sourcewell). The purchase of these vehicle will replace aging equipment that will improve reliability, reduce maintenance costs, and increase efficiency in daily operations. The purchase of the new Chevrolet Colorado will aid the Refuse Department with route inspection.
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 three (3) 2026 Chevrolet Trailblazers and one (1) 2026 Chevrolet Colorado in the total amount of $134,774.30 from National Auto Fleet Group - Chevrolet of Watsonville, through Sourcewell contract # 091521-NAF; 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(s), 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 26/27 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.
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 vehicles 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 four (4) currently budgeted fleet vehicles to replace two (2) Inspection Services vehicles, replace one (1) replacement Recycling Division vehicle, and one (1) addition for the Refuse Department utilizing the nationwide government procurement service Sourcewell via National Auto Fleet Group - Chevrolet of Watsonville.
Two of the Chevrolet Trailblazers will replace existing vehicles assigned to the Inspection Services Division. These vehicles are used daily by inspectors to perform construction inspections, code compliance activities, and other field responsibilities throughout the City. Dependable vehicles are essential to maintaining inspection schedules, providing timely customer service, and supporting development projects. The third Trailblazer will replace an aging vehicle assigned to the Recycling Division that is used for operational support functions. Replacing this vehicle will improve operational reliability and ensure staff can continue providing uninterrupted support to refuse-recycling collection operations.
The purchase of the new 2026 Chevrolet Colorado is requested to support the Refuse Division in meeting State requirements for route inspection. This is an additional vehicle and is not replacing an existing asset. Route inspection includes monitoring residential and commercial collection routes, investigating missed collections and customer service concerns, verifying service levels, documenting field conditions, and ensuring compliance with state regulations. Because these duties require extensive daily travel throughout the City, a dedicated vehicle is necessary to allow staff to respond quickly and efficiently to service issues without impacting the availability of other fleet vehicles.
Adding this vehicle will improve the Refuse Division’s ability to monitor collections in real time, provide enhanced operational oversight, and ensure state requirements. The Chevrolet Colorado provides durability, cargo capacity and versatility needed to transport equipment, traffic control devices and field supplies while remaining economical to operate. Together, these vehicle purchases represent an investment in replacing aging fleet assets while providing the resources necessary to support expanding operational responsibilities and maintain efficient, reliable public services.
The listed vehicles to be purchased is budgeted in the FY 26/27 vehicle replacement adopted budget. The vehicles requested for purchase in this report will meet the California Air Resources Board (CARB) 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 vehicles for Inspection Service are approved in the FY2026/27 adopted budget in Fund 7006-Vehicle Replacement Fund. The approved funding for each project includes a 10% contingency, and no other funding will be needed.
ATTACHMENTS
1. National Auto Fleet Group - Trailblazer Quote 1
2. National Auto Fleet Group - Trailblazer Quote 2
3. National Auto Fleet Group - Trailblazer Quote 3
4. National Auto Fleet Group - Colorado Quote
5. National Auto Fleet Group Sourcewell Contract Documentation
6. Sourcewell Membership