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ADOPT RESOLUTION TO AUTHORIZE PURCHASING AGREEMENTS FOR THE PURCHASE OF 31 TRUCKS
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Appropriate funds in the amount of $1,275,020.69 from the Fleet Internal Service Fund Balance to the Fiscal Year 2024-25 Fleet Internal Service Fund, Equipment Acquisition Account.
2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
3. Approve the use of a Leveraged Purchasing Agreement through the State of California, Department of General Services, Contract No. 1-22-23-20B-K, in the amount of $855,350.21, from Downtown Ford of Sacramento, CA, for the purchase of 17 trucks.
4. Approve the use of a Cooperate Purchasing Agreement through Sourcewell, Contract No. 032824-RTG, in the amount of $1,530,698.57, from Rush Medium-Duty Truck Centers of California, Inc. dba Rush Truck Center of Ceres, CA, for the purchase of 14 trucks.
5. Authorize the City Manager to execute two Purchasing Agreements in the total amount of $2,386,048.78 with Downtown Ford and Rush Medium-Duty Truck Centers of California, Inc. dba Rush Truck Center for the purchase of 31 trucks with various equipment.
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
Staff recommends the replacement purchase of 31 trucks to be utilized by the Public Works Department, Municipal Utilities Department (MUD), and Police Department. The proposed replacement units have surpassed their stated lifecycles, hours, and have multiple mechanical deficiencies (Attachment A).
Due to the unresponsive bid results, Public Works’ staff recommends using a Leveraged Purchasing Agreement (LPA) through the State of California, Department of General Services, Contract No. 1-22-23-20B-K, for the purchase of 17 trucks from Downtown Ford and using a Cooperative Purchasing Agreement (COOP) through Sourcewell, Contract No. 032824-RTG, for the purchase of 14 trucks from Rush Medium-Duty Truck Centers of California, Inc. dba Rush Truck Center (Rush Truck Center) in the total amount of $2,386,048.78.
It is also recommended that Council adopt a resolution appropriating funds in the amount of $1,275,020.69 from the Fleet Internal Service Fund (ISF) Balance to the Fiscal Year (FY) 2024-25 Fleet ISF, Equipment Acquisition Account, to complete the purchases.
DISCUSSION
Background
The City’s replacement criteria for trucks, based on industry standards for performance and efficiency, is 10 years or 100,000 miles. 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 27 units among various departments that exceed the age and/or mileage criteria, have recurring mechanical or operational problems, and/or are non-operational due to a motor vehicle accident (Attachment A). Replacement of these units is recommended.
Present Situation
The FY 2023-24 truck replacement plan accounted for the purchase of 31 trucks, 27 replacements and 4 new additions.
Staff recommends the acquisition of 17 trucks from Downtown Ford and 14 trucks from Rush Truck Center utilizing contracts through the State of California, Department of General Services and Sourcewell.
The use of LPA contracts streamline the procurement process and takes advantage of volume purchasing. LPA contracts have been competitively bid, reviewed, evaluated, and recommended to the State of California for consideration of award. The use of these contracts is optional and is available to California State and local government agencies.
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. The use of COOP contracts streamline administrative costs and procedures while maintaining the integrity of the competitive bidding process. The specifications for the trucks with various equipment available through the State and Sourcewell meet the City’s requirements for this type of equipment.
The recommended resolution authorizes the City Manager to execute two Purchasing Agreements, for a total purchase price of $2,386,048.78, through:
• The State of California, Department of General Services, in the amount of $855,350.21, for the purchase of 17 trucks from Downtown Ford of Sacramento, CA.
• Sourcewell, in the amount of $1,530,698.57, for the purchase of 14 trucks from Rush Truck Center of Ceres, CA.
The equipment being replaced will be removed from the fleet and sold at public auction.
Findings
Pursuant to Stockton Municipal Code section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. State of California, Department of General Services, and Sourcewell established COOPs with Downtown Ford and Rush Truck Center to provide access to preferential pricing of trucks with various equipment.
2. The Purchasing Agreements with Downtown Ford and Rush Truck Center were established pursuant to formal competitive bidding processes conducted by the State of California, Department of General Services, and Sourcewell on behalf of its governmental members, of which the City is one.
3. Taking advantage of the LPAs negotiated by the State of California and Sourcewell will save the administrative expense of City staff conducting separate procurements.
4. The specifications for the replacement equipment available through the State of California and Sourcewell contracts meet the City’s requirements for their equipment type.
FINANCIAL SUMMARY
With the appropriation of funds in the amount of $1,275,020.69 from the Fleet ISF Balance to the FY 2024-25 Fleet ISF, Equipment Acquisition Account, there will be sufficient funding available in the Fleet ISF Equipment Acquisition Account, Police Department Acquisition Account, and Municipal Utilities Department Capital Outlay Accounts, to purchase 31 trucks, for a total of $2,386,048.78.
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 Replacement List