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ADOPT RESOLUTION FOR THE SINGLE AVAILABLE SOURCE PURCHASE OF BRUSH RIGS
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. Authorize the purchase of four brush rigs plus upfitting of an existing brush rig for the Fire Department in the amount of $1,478,198 with DEROTIC Emergency Equipment of Rancho Cordova, CA.
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
On September 14, 2021, Council approved the use of $78,052,072 in American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds. The purchase of various fire apparatus and equipment were identified as eligible expenses, including vehicles, generators, and related equipment.
It is recommended that Council adopt a resolution authorizing the single available source purchase of four upfitted brush rigs plus upfitting of an existing brush rig for completion and delivery in Fiscal Year (FY) 2023-24 with DEROTIC Emergency Equipment of Rancho Cordova, CA, for a total cost of $1,478,198 (Attachment A).
DISCUSSION
Background
On September 14, 2021, Council approved the use of $78,052,072 in ARPA Coronavirus State and Local Fiscal Recovery Funds. The purchase of various fire apparatus and equipment were identified as eligible expenses, including fire engines.
The City’s fleet of heavy fire equipment consists of 17 fire engines, five ladder trucks, and eight brush rigs. In the last two years, six fire engines, and two ladder trucks have been ordered to replace existing units and are awaiting completion and delivery later this calendar year. The turnaround time for building this customized equipment and the upfitting is extensive and specialized to the operation of the Fire Department. Upfitting refers to the augmentation of vehicles to add accessories and equipment customized to the operational needs of the firefighters.
The department utilizes the fleet of eight brush rigs for the purpose of fighting smaller fires that occur in hard-to-reach locations. The brush rigs provide an essential service to the Fire Department with their maneuverability and off-road capabilities.
The City’s replacement criteria for large trucks, based on industry standards for performance and efficiency, is 15 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.
Present Situation
Public Works and the Fire Department have identified three brush rigs that have exceeded the standard life cycle and are recommended for replacement with DEROTIC (Attachment B). The equipment being replaced will be removed from the fleet and sold at a public auction. Due to the re-opening of Fire Station 1 in April 2023, an additional brush rig unit will be added to the fleet for this facility. The specifications for the brush rigs have been approved by the Fire Department and are consistent with the current brush rig builds.
Staff recommends Council approve a resolution authorizing the single available source purchase of four upfitted brush rigs and the upfit of one existing brush rig from DEROTIC Emergency Equipment for a total cost of $1,478,198. Staff has solicited for bids multiple times unsuccessfully due to the extremely competitive market and custom build of the units. Vehicle manufacturers have not completely caught up with the parts supply chain shortages caused by the COVID pandemic. These shortages have caused less vehicles to be manufactured, resulting in less inventory for purchase. Dealerships are reluctant to bid vehicles because of the limited inventory and their ability to honor quoted pricing through the duration of our traditional government low bid procurement process. DEROTIC Emergency Equipment is the only vendor available to meet the City’s needs for this custom equipment.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bidding process, including the use of a single available source justification purchase. These findings include:
1. The City does not have staffing available to provide equipment customization builds plus additional professional upfitting services.
2. The use of the Single Available Source is appropriate for this contract due to the specialized nature and build of the equipment.
3. The use of the Single Available Source procurement is appropriate for this purchase because it allows the City to be more competitive in acquiring equipment in current industry conditions as vendors struggle to honor quoted pricing through the duration of a traditional government low bid procurement process, particularly with the custom build of the units.
4. The use of the Single Available Source procurement will save the administrative expense of additional procurement attempts by City staff, given that there have already been multiple unsuccessful attempts to solicit bids and any additional attempts are not expected to garner a different outcome.
5. The City negotiated a purchase following approval of the Single Available Source justification, which supports an exception to the competitive bidding process in accordance with SMC section 3.68.070.
FINANCIAL SUMMARY
There are sufficient funds in Project WARP101 (0010-156-800004-280-282-30-00-000-000) to fund the purchase of four brush rigs.
The upfit of the existing brush rig will be funded in FY 2023-24 by the Fleet Internal Service Fund (ISF). There is adequate funding in the Fleet ISF, Equipment Acquisition (4530-718-800004-500-000) to fund this purchase.
Purchase breakdown:
Four Turnkey Brush Rigs UNIT PRICE EXT PRICE
KC-6 - F550 or Equivalent Chassis $ 89,250.00 $ 357,000.00
Upfitting $199,500.00 $ 798,000.00
Taxable Fees (DMV) $ 400.00 $ 1,600.00
Subtotal $289,150.00 $1,156,600.00
Sales Tax (9.00%) $ 26,023.50 $ 104,094.00
Non-Taxable Fees (CA Tire) $ 12.25 $ 49.00
Turnkey Total: $315,185.75 $1,260,743.00
One Brush Rig Upfit PRICE
Customer Supplied Chassis $ 0.00
Upfitting $ 199,500.00
Taxable Fees (DMV) $ 0.00
Subtotal $ 199,500.00
Sales Tax (9.00%) $ 17,955.00
Non-Taxable Fees (CA Tire) $ 0.00
Upfit Only Total: $ 217,455.00
Grand Total $1,478,198.00
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - Quotes from DEROTIC Emergency Equipment
Attachment B - Equipment Replacement List