Report Prepared by: Wally Broughton, Public Works Manager - Operations
Title
SUBJECT: Authorization to Purchase Nine Budgeted Fleet Vehicles, Including One Caterpillar Backhoe from Holt of California for $131,128.90, Two Articulating Overcenter Aerial Devices (Tree Trimming Trucks) from Altec Industries for $144,515 each, One Street Sweeper from Municipal Maintenance Equipment for $299,992.14, One Front Loader Refuse Truck and Four Side Loader Refuse Trucks from Ruckstell for $1,415,798.13; and to Waive the Competitive Bidding Requirement to Allow the Purchases to be Made Through a Cooperative Purchasing Agreement with Sourcewell
REPORT IN BRIEF
Considers authorizing a waiver of competitive bidding requirement pursuant to Merced Municipal Code Section 3.04.210 to purchase nine currently budgeted and Council approved fleet vehicles through the government procurement program Sourcewell.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the purchase of one Caterpillar Backhoe Loader in the amount of $131,428.90 from Holt of California; and,
B. Approving the purchase of two Articulating Overcenter Aerial Devices (Tree Trimming Trucks) in the amount of $144,515.00 each from Altec Industries; and,
C. Approving the purchase of one Schwarze Street Sweeper in the amount of $299,992.14 from Municipal Maintenance Equipment; and,
D. Approving the purchase of one Front Loader Refuse Truck in the amount of $256,307.28 and Four Side Loader Refuse Trucks in the amount of $1,159,490.85 from Ruckstell California Sales Co, Inc.; and,
E. 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,
F. Authorizing the City Manager or the Assistant 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.
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 19/20 Adopted Budget.
DISCUSSION
History
Sourcewell offers equipment/vehicle purchase programs to government entities nationwide; specifications are created and Request for Bids are sought by the respective programs 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 venders including, street sweepers, leaf trucks, fire trucks, backhoes, etc. through the Sourcewell government procurement program with great success.
Buying these vehicles directly through these outside programs requires waiving the City’s competitive bid requirements. In addition to cost savings, purchasing directly from these government programs 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 nine currently budgeted fleet vehicles utilizing the nationwide government procurement service Sourcewell via Holt of California, Altec Industries, Municipal Maintenance Equipment (MME), and Ruckstell California Sales Co. These vehicles include one backhoe loader, two tree trimming trucks, one street sweeper, as well as five refuse vehicles.
All listed vehicles to be purchased is budgeted in the FY 19/20 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 contracts.
IMPACT ON CITY RESOURCES
The vehicles were approved in the FY 2019/20 adopted budget; no additional funding is needed. All vehicles will be purchased using funds budgeted in Fund 674 - Fleet Replacement, except for two Side Loader Refuse Trucks that will be purchased using funds budgeted in Fund 558 - Refuse.
ATTACHMENT
1. Holt of California Quote (Backhoe)
2. Altec Quote (Tree Trimming Truck)
3. MME Quote (Street Sweeper)
4. Ruckstell California Sales Quote (Refuse Trucks)
5. Sourcewell agreement