Report Prepared by: Wally Broughton, Public Works Manager - Operations
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements and Authorizing the Purchase of One Electric Forklift for $44,699.99 Through a Cooperative Purchasing Agreement with Sourcewell via Cromer Material Handling
REPORT IN BRIEF
Considers approving to waive the City’s competitive bidding requirements pursuant to Merced Municipal Code Section 3.04.210 to purchase a currently budgeted and Council approved fleet equipment 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 to utilize a cooperative purchasing agreement through Sourcewell, a government procurement program; and,
B. Approving the purchase of one new electric Doosan Forklift in the amount of $44,699.99, plus applicable taxes, from Cromer Material Handling through Sourcewell contract #091520-DIV; and,
C. Authorizing the City Manager or Deputy City Manager to execute the necessary documents, the Finance Officer to make the necessary budget adjustments, the City Buyer to issue 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 conditions 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 City Charter, Section 200. Municipal Code Section 3.04.210 - Exemptions from competitive bidding.
CITY COUNCIL PRIORITIES
As provided for in the FY 23/24 Adopted Budget.
DISCUSSION
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 can 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 equipment/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 equipment/vehicles that are currently being used by City employees. The equipment 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 electric forklift utilizing the nationwide government procurement service Sourcewell via Cromer Material Handling Resource for the Water Division.
This equipment is budgeted in the FY 23/24 adopted budget and meets 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 to standardize equipment and utilize the government pricing contract.
IMPACT ON CITY RESOURCES
Funding for this equipment is available within the FY 2023/24 Council adopted budget; no additional funding is needed. The forklift will be purchased using funds budgeted in Fund 6001-Water System Operation (Org 60016060, object 590002).
ATTACHMENTS
1. Electric Forklift Quote from Cromer Material Handling
2. Sourcewell Certificate of Membership