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APPROVE PURCHASE OF ONE TEN-WHEEL DUMP 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-2 106 three-axle dump truck from Delta Truck Center of French Camp, CA, in the amount of $134,935.50.
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 ten-wheel dump truck currently used by Public Works Streets Maintenance Crew. The replacement ten-wheel dump truck will be purchased from Delta Truck Center. The total purchase cost of the vehicle is $134,935.50 (Attachment A - Quote from Delta Truck Center).
DISCUSSION
Background
The Public Works Streets Maintenance Crew currently has four ten-wheel dump trucks that are used for various construction and maintenance activities, including hauling and distributing asphalt and related road materials. The oldest of the four ten-wheel dump trucks, Unit No. 2550, is a 1998 model with 5,661 hours of service. The current replacement cycle for this class of vehicle, on which the Fleet Internal Service Fund rent is based, is 15 years. This cycle is based on Fleet's experience with maintenance costs and reliability of equipment, projected salvage value, and cost of replacement units. In general, our replacement cycles are the same or longer than cities of comparable size. Unit No. 2550 is a Freightliner model FL80, which is no longer manufactured. Freightliner has advised that it will be discontinuing parts that support this model, which will make the unit very difficult to maintain. 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 in cases 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 three newer ten-wheel dump trucks in the City Fleet are Freightliner units. The Fleet Manager recommends a Freightliner M-2 106 unit be purchased to replace Unit No. 2550. 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 $134,935.50 to provide a Freightliner ten-wheel dump 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 $147,255.62 (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 ten-wheel dump truck from Delta Truck Center located in French Camp, at a total cost of $134,935.50 (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 ten-wheel dump 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 ten-wheel dump truck from Delta Truck Center.
FINANCIAL SUMMARY
The following is a cost breakdown:
One 2016 Freightliner M-2 106 Three-Axle Dump Truck $ 123,777.99
Sales Tax (9%) $ 11,140.01
Tire Recycling Fee $ 17.50
Total Purchase Price $ 134,935.50
There are sufficient funds available in Fleet Internal Service Fund Account No. 501-5060-670 for the purchase of one ten-wheel dump truck from Delta Truck Center at a total purchase price of $134,935.50.
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