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ADOPT RESOLUTION TO PURCHASE MISCELLANEOUS EQUIPMENT UTILIZED BY THE MUNICIPAL UTILITIES DEPARTMENT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Approve the use of Cooperative Purchasing Agreements through Sourcewell Contract Nos. 011723-LIN, 011723-JDC, and 101221-VTR to provide the City access to preferential pricing of equipment from Link-Belt Cranes, John Deere Construction Retail Sales, and Vactor Manufacturing.
3. Appropriate funds in the amount of $480,000 from the Wastewater Utility Fund Balance; $240,000 to the Municipal Utilities Department Equipment Acquisition Account and $240,000 to the Wastewater Pump Station Equipment Acquisition Account.
4. Authorize the City Manager to execute a contract in the amount of $1,725,347.27 with Link-Belt Cranes through affiliated vendor, Nixon-Egli Equipment Company of Tracy, CA, to purchase one 100-ton crane.
5. Authorize the City Manager to execute a contract in the amount of $303,857.27 with John Deere Construction Retail Sales through affiliated vendor, Pape Machinery, Inc. of French Camp, CA, to purchase one front loader tractor.
6. Authorize the City Manager to execute a contract in the amount of $1,325,322.40 with Vactor Manufacturing through affiliated vendor, Owen Equipment of Fairfield, CA, to purchase two hydro-vac sewer cleaning trucks.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Public Works Department recommends the purchase of new and replacement equipment utilized by the Municipal Utilities Department (MUD) through Sourcewell. Sourcewell is a public agency based in Minnesota that issues Cooperative Purchasing Agreements to simplify the procurement process for public agencies and take advantage of volume purchasing. Use of a Cooperative Purchasing Agreement streamlines administrative costs and procedures while maintaining the integrity of the competitive bidding process. The specifications for the one 100-ton crane, one front loader tractor, and two hydro-vac sewer cleaning trucks available through Sourcewell meet the City’s requirements for this type of equipment.
It is recommended that Council adopt a resolution authorizing the City Manager to execute three Cooperative Purchasing Agreements through Sourcewell, formerly National Joint Powers Alliance (NJPA), for a total of $3,354,526.94 for the purchase of one 100-ton crane, one front loader tractor, and two hydro-vac sewer cleaning trucks.
DISCUSSION
Background
The acquisition of the equipment will continue to support MUD, allowing them to complete their daily tasks. One 100-ton crane, one front loader tractor, and one hydro-vac sewer cleaning truck are all approved additions to the fleet. One hydro-vac sewer cleaning truck will replace an older unit that will be removed from service upon delivery of the new replacement unit.
The City’s replacement criteria for miscellaneous equipment, based on industry standards for performance and efficiency, is 15 years for small equipment and 20 years for large equipment. Adherence to this standard replaces equipment before routine failures and breakdowns are experienced, reducing the demand for extensive mechanical repairs. The replacement standard increases the resources available for preventative maintenance and is critical to the availability and performance of all fleet equipment, which includes all public safety and emergency response vehicles. Fleet staff identified one piece of equipment that exceeds the age and/or has recurring mechanical or operational issues (Attachment A). All other acquisitions are additions to the Fleet and are reflected in the Vehicle Purchase and Replacement List.
Present Situation
The Public Works Department recommends the purchase of one 100-ton crane, one front loader tractor, and two hydro-vac sewer cleaning trucks utilizing Cooperative Purchasing Agreements with Sourcewell.
Sourcewell is a public agency based in Minnesota that serves as a municipal contracting agency to streamline the procurement process for public agencies and takes advantage of volume purchasing. All Sourcewell contracts have been competitively bid, solicited nationally, reviewed, evaluated by a committee, and recommended to the Sourcewell Board of Directors for consideration of award. The use of these contracts is optional and is available to California State and local government agencies.
The recommended resolution authorizes the City Manager to execute three Cooperative Purchasing Agreements through Sourcewell, formerly NJPA, for a total of $3,354,526.94 for the following purchases:
• $1,725,347.27 with Link-Belt Cranes through affiliated vendor, Nixon-Egli Equipment Company of Tracy, CA, to purchase one 100-ton crane (Attachment B).
• $303,857.27 with John Deere Construction Retail Sales through affiliated vendor, Pape Machinery, Inc. of French Camp, CA, to purchase one front loader tractor (Attachment C).
• $1,325,322.40 with Vactor Manufacturing through affiliated vendor, Owen Equipment of Fairfield, CA, to purchase two hydro-vac sewer cleaning trucks (Attachment D).
The equipment being replaced will be removed from the fleet and sold at public auction.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bid process. These findings include:
1. Sourcewell established Cooperative Purchasing Agreements for the purchase of equipment, including one 100-ton crane with Link-Belt Cranes, one front loader tractor with John Deere Construction Retail Sales, and two hydro-vac sewer cleaning trucks with Vactor Manufacturing.
2. Link-Belt Cranes, John Deere Construction Retail Sales, and Vactor Manufacturing Cooperative Purchasing Agreements were established pursuant to formal competitive bidding processes conducted by Sourcewell on behalf of its governmental members, of which the City is one.
3. Taking advantage of the leveraged procurement agreements negotiated by Sourcewell will save the administrative expense of City staff conducting separate procurements.
4. The specifications for the equipment available through the Sourcewell contracts meet the City’s requirements for their equipment type.
FINANCIAL SUMMARY
There is not sufficient funding in the MUD Equipment Acquisition Accounts for the purchase of one 100-ton crane in the amount of $1,725,347.27. The resolution includes appropriating funds in the amount of $480,000 from the Wastewater Utility Fund Balance; $240,000 to the MUD Equipment Acquisition Account and $240,000 to the Wastewater Pump Station Equipment Acquisition Account to provide sufficient funding to procure the 100-ton crane.
There are sufficient funds available in various MUD Vehicle and Equipment Acquisition, Account No. 6513-511-800004-600-000-00-65-000-000, for the purchase of one front loader tractor in the amount of $303,857.27 and Account No. 6520-000-800003-610-000-00-65-000-000, for the purchase of two hydro-vac sewer cleaning trucks in the amount of $1,325,322.40.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Vehicle Purchase and Replacement List
Attachment B - Quote from Nixon-Egli Equipment Company
Attachment C - Quote from Pape Machinery, Inc.
Attachment D - Quote from Owen Equipment