Report Prepared by: Ken F. Elwin, PE, Director of Public Works
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements and Approval of Agreement for Purchase of Goods with Western Industrial Sales, Inc., dba Kellogg Supply for the Purchase of Various Parts, Equipment, Tools, Materials, and Supplies Used in Public Works Operations in the Amount not to Exceed $100,000, and with Schoettler Tire, Inc., for the Purchase of Various Vehicle and Equipment Tires in the Amount not to Exceed $125,000 for the Contract Terms Ending June 30, 2022
REPORT IN BRIEF
Considers waiving the City’s competitive bidding requirements pursuant to Merced Municipal Code Section 3.04.210 and approving two separate agreements for the purchase of vehicle parts, equipment, tools, materials, and supplies used in daily Public Works operations, as well as the purchase of various vehicle and equipment tires.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code Section 3.04.210 for annual supply agreements; and,
B. Approving an Agreement for Purchase of Goods with Western Industrial Sales, Inc., dba Kellogg Supply, in the amount not to exceed $100,000; and,
C. Approving an Agreement for the Purchase of Goods with Schoettler Tire, Inc., in the amount not to exceed $125,000; and,
D. Authorizing the City Manager or the Deputy City Manager, to execute the necessary documents and approve amendments up to the City Manager threshold of $34,000.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions 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
City of Merced Charter Section 3.04.210 - Exemptions from Competitive Bidding:
Except as otherwise provided in this chapter, competitive bidding requirements for purchases in excess of twenty-five thousand dollars ($25,000.00), the "bidding threshold”, may be waived with the approval of the city council. Waivers may be authorized for, but are not limited to, cooperative purchasing in conjunction with other governmental entities, professional services, annual service or supply agreements, or purchases necessary for standardization on particular types of equipment. The bidding threshold shall be adjusted for inflation utilizing the same index and methodology as the bidding threshold in Section 3.04.080 of this code.
CITY COUNCIL PRIORITIES
As provided for in the FY 2021/2022 adopted budget.
DISCUSSION
The City of Merced Public Works Department utilizes multiple vendors for the purchase of various parts, equipment, tools, materials, supplies, and tires. These materials and goods are needed for regular maintenance, unforeseen repair work, or work related to vehicle accidents that damage City infrastructure.
The Public Works Department is requesting Council waive competitive bidding requirements to allow for the annual supply agreement to be executed up to $100,000 with Kellogg Supply and $125,000 with Schoettler Tire. The agreements have been approved as to form by the City Attorney’s Office and funding is available within the FY 2021/2022 adopted budget.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed; funding is available within the FY 2021/2022 adopted budget.
ATTACHMENTS
1. Kellogg Supply Agreement
2. Schoettler Tire Agreement