Report Prepared by: Wally Broughton, Public Works Manager - Operations
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements and Authorizing the Purchase of up to Four (4) Budgeted Pieces of Equipment, Depending on Availability, Through Cooperative Purchasing Agreements with Sourcewell, Including One Set of Mobile Column Jack Lifts for $50,627.05 for the Fleet Department, Two Side Loader Refuse Trucks for $394,125.19 Each (Total $788,250.38) for the Refuse Department, as Well as One 10 Wheeled Dump Truck for $175,478.00 for the Streets Department
REPORT IN BRIEF
Considers waiving competitive bidding requirements pursuant to Merced Municipal Code Section 3.04.210 to purchase currently budgeted and Council approved fleet vehicles through the government procurement program Sourcewell.
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 purchases to be made with cooperative purchase agreements through Sourcewell, a government procurement program; and,
B. Approving the purchase of one set of Mobile Column Jack Lifts in the amount of $50,627.05 from ARI Phoenix, Inc., through Sourcewell contract #013020-ARP; and,
C. Approving the purchase of two Side Loader Refuse Trucks in the amount of $394,125.19 each, for a Total Amount of $788,250.38, from Ruckstell California Sales Co., Inc., through Sourcewell contract # 091219-NWY; and,
D. Approving the purchase of one 10 Wheeled Dump Truck in the amount of $175,478.00, plus applicable sales tax, from PB Loader Corporation through Sourcewell contract # 080521-PBL; and,
E. Authorizing the City Manager or the Deputy City Manager to execute any necessary documents for the purchases specified above, the Finance Officer to make the appropriate budget adjustments and City Buyer to issue the Purchase Orders, 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
Merced City Charter, Section 200. Municipal Code Section 3.04.210 - Exemptions from competitive bidding.
CITY COUNCIL PRIORITIES
As provided for in the FY 22/23 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 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 currently budgeted equipment and fleet vehicles utilizing the nationwide government procurement service Sourcewell via ARI Phoenix, Inc., Ruckstell California Sales Co., and PB Loader Corporation.
All listed equipment and vehicles to be purchased are budgeted in the FY 22/23 adopted budget. All vehicles 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 vehicles were approved in the FY 2022/23 Council adopted budget; no additional funding is needed. The Mobile Column Jack Lift will be purchased using funds budgeted in Fund 670 - Fleet Management. The Side Loader Refuse Trucks will be purchased using Fund 674 - Fleet Replacement (Refuse), and Fund 558 - Refuse Enterprise. The 10 Wheeled Dump Truck will be purchased using Fund 674 - Fleet Replacement (Streets).
ATTACHMENT
1. ARI Hetra Lifting System Quote (Mobile Column Jack Lift)
2. Ruckstell Ca. Sales Quote (Side Loader Refuse Trucks)
3. PB Loader Corporation Quote (10 Wheeled Dump Truck)
4. Sourcewell Certificate of Membership