Report Prepared by: Dan McComb, Public Works Supervisor - Refuse
Title
SUBJECT: Approval of a First Amendment to an Agreement with Shaefer Systems International, Inc., to Purchase Refuse Containers Through Houston-Galveston Area (H-GAC) Cooperative Purchasing Contract
REPORT IN BRIEF
Considers approving a first amendment to agreement with Shaefer Systems International, Inc., reflecting the change from National Joint Powers Alliance (NJPA)/Sourcewell Procurement Program to the Houston-Galveston Area (H-GAC) Cooperative Purchasing Program.
RECOMMENDATION
City Council - Adopt a motion approving a first amendment with Schaefer Systems International, Inc., for refuse containers purchase through the Houston-Galveston Area (H-GAC) Cooperative Purchasing Program; and, authorizing the City Manager or Deputy City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommend by Staff; or,
2. Approve, subject to other than recommended by Staff; or,
3. Deny; or,
4. Refer to Staff for reconsideration of specific items; or,
5. Continue to a future meeting.
AUTHORITY
Merced Municipal Code Title 3, Article III - Purchases over thirty-three Thousand Dollars.
CITY COUNCIL PRIORITIES
As provided for in the 2021/2022 Adopted Budget.
DISCUSSION
On September 21, 2020, City Council approved a 5-year agreement with Schaefer Systems International, Inc. (Schaefer), for the purchase of residential refuse containers and parts, utilizing competitive bid pricing through the National Joint Powers Association (NJPA), also known as Sourcewell, contract #041217.
Schaefer’s contract with Sourcewell has now expired and Schaefer has requested to update the City’s container purchase agreement to now reference the Houston-Galveston Area Cooperative Purchasing Program (HGACBuy) contract #RC01-21.
Similar to Sourcewell, HGACBuy offers purchase programs to government entities nationwide; specifications are created, and Request for Bids are sought by HGACBuy for a wide variety of equipment, products, and services used by local governments. As a result of the nationwide scope of these programs, the City is able to procure specialized equipment, products, and services for much less than the more traditional method of creating specifications and soliciting bids in-house. In the past, the City has purchased a variety of vehicles and equipment not provided by local vendors through the HGACBuy government procurement program with great success.
The HGACBuy contract stipulates a not to exceed unit price for containers and parts. Schaefer offers the gray/blue (65-gallon) container at a not to exceed unit cost of $47.50 and the green (95-gallon) container at a not to exceed unit cost of $50.25.
For Fiscal Year 2021/2022, staff has anticipated the purchase of 100 gray, 150 blue, and 150 green replacement residential containers as well as the purchase of an additional 500 each gray, blue, and green for new homes for a total cost of $92,037.50 plus shipping and taxes.
The Public Works Department, Refuse Division, is requesting Council authorize amending the agreement with Schaefer to continue purchasing budgeted replacement and new service containers.
IMPACT ON CITY RESOURCES
Funds for the purchase of new and replacement containers are budgeted for in Refuse Enterprise - Fund 558 and Refuse Capital Equipment Enterprise - Fund 562.
ATTACHMENTS
1. Schaefer Systems 9-21-20 Agreement
2. First Amendment to Agreement