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APPROVE PURCHASE OF ONE ON-ROAD TRACTOR TRUCK
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RECOMMENDATION
It is recommended that the City Council adopt a motion approving findings which support and justify an exception to the competitive bid process for the purchase of one 2016 Freightliner M-2 112 three-axle tractor truck from Delta Truck Center of French Camp, CA, in the amount of $121,700.35.
It is further recommended that the motion authorize the City Manager to take appropriate actions to carry out the purpose and intent of this motion.
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Summary
The Fleet Manager is recommending replacement of one on-road tractor truck currently used by Public Works Streets Maintenance Crew. The replacement on-road tractor truck will be purchased from Delta Truck Center. The total purchase cost of the vehicle is $121,700.35 (Attachment A - Quote from Delta Truck Center).
DISCUSSION
Background
The Public Works Streets Maintenance Crew uses this type of truck to haul several types of trailers. The City's existing on-road tractor truck, Unit No. 2270, is a 1992 model with 4,937 hours of service. The current replacement cycle for this class of vehicle, on which the Fleet Internal Service Fund rent is based, is 12 years. This cycle is based on Fleet's experience with maintenance costs and reliability of equipment, project salvage value, and cost of replacement units. In general, our replacement cycles are the same or longer than cities of comparable size. According to this cycle, Unit No. 2270 was due for replacement in 2004 and is now considered to be beyond its useful life for a regular use tractor unit. Unit No. 2270 is a Ford model L8000, which is no longer manufactured. The unit does not comply with California emission requirements; therefore, use of the unit is restricted to less than 50 hours per year. Parts for this unit are very difficult to obtain. The Fleet Manager recommends that this unit be replaced due to its age and condition.
Present Situation
Stockton Municipal Code Section 3.68.070 provides for an exception to the competitive bidding requirements where Council has approved findings which support and justify exemptions to the competitive bidding process. One of the circumstances for these exemptions is a single source vendor pursuant to Stockton Municipal Code Section 3.68.070 (A)(4). This type of vendor is defined as one that is selected for a contract based on their capability to provide a specific service or product.
The mechanical system of the on-road tractor unit is very similar to that of a ten-wheel dump truck. The City's existing fleet of dump trucks consists of primarily Freightliner units. The Fleet Manager recommends a Freightliner M-2 112 tractor unit be purchased to replace Unit No. 2270. Standardizing the fleet in this way provides maintenance efficiencies and reduced costs for parts acquisition and storage, and minimizes the required training of staff mechanics. The City has received great service and parts support from the local Freightliner dealer, which is located less than six miles from the Fleet shop at the Municipal Service Center. Staff has found the Freightliner units to be very dependable, easy to maintain, and when needed the local dealer's service shop is open from 7 am to midnight. The maintenance advantages of standardizing on one manufacturer, combined with an upfront cost that is comparable to other similar quality manufacturers such as International and Kenworth, make purchase of a Freightliner unit the best choice from a life cycle cost perspective.
Delta Truck Center is the local dealer for Freightliner trucks. Delta Truck Center provided a quote of $121,700.35 to provide a Freightliner on-road tractor truck meeting the City's specification.
As a reference, Fleet staff solicited a price quote from Riverview International Trucks, LLC, of West Sacramento, CA, using the competitively bid State of California contract pricing for a similar truck. The price quote was $123,207.67 (Attachment B - Quote from Riverview International Trucks, LLC), which is higher than the sole source price from Delta Truck Center.
The recommended motion authorizes the replacement purchase of one on-road tractor truck from Delta Truck Center located in French Camp, at a total cost of $121,700.35 (Attachment A). The unit being replaced will be removed from the fleet and sold at auction.
Findings
Stockton Municipal Code Section 3.68.070 provides for an exception to the competitive bidding requirements in cases where Council has approved findings which support and justify the purchase. Proposed findings to support this purchase are as follows:
1) Freightliner trucks are already in use throughout the existing fleet. The purchase of this brand of truck provides for standardization of parts and equipment, and minimizes training requirements.
2) Maintenance and repair costs for this class of truck will be lower as a result of this standardization.
3) The price from Delta Truck Center for a Freightliner on-road tractor truck is reasonable and lower than the competitively bid State of California contract price for a similar type unit.
4) Delta Truck Center is the only dealer of this specific brand and model of truck for the Stockton sales territory.
Based on these findings, staff recommends the purchase of one on-road tractor truck from Delta Truck Center.
FINANCIAL SUMMARY
The following is a cost breakdown:
One 2016 Freightliner M-2 112 Three-Axle Tractor Truck $ 111,635.65
Sales Tax (9%) $ 10,047.20
Tire Recycling Fee $ 17.50
Total Purchase Price $ 121,700.35
There are sufficient funds available in Fleet Internal Service Fund Account No. 501-5060-670 for the purchase of one on-road tractor truck from Delta Truck Center at a total purchase price of $121,700.35.
There is no impact to the City's General Fund or to any other unrestricted fund as a result of taking the recommended action.
Attachment A - Quote from Delta Truck Center
Attachment B - Quote from Riverview International Trucks, LLC