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APPROVE MOTION TO PURCHASE EQUIPMENT UTILIZED BY THE PUBLIC WORKS DEPARTMENT
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RECOMMENDATION
It is recommended that the City Council approve a motion 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. 020223-CAT, 110421-ALT, and 080521-PBL to provide the City access to preferential pricing of heavy equipment from Caterpillar, Inc., Altec Industries, Inc., and PB Loader Corporation.
3. Authorize the City Manager to execute a contract in the amount of $108,720.80 with Caterpillar, Inc. through affiliated vendor, Holt of CA of Stockton, CA, to purchase one utility compactor.
4. Authorize the City Manager to execute a contract in the amount of $516,184.58 with Altec Industries, Inc. of Dixion, CA, to purchase two bucket trucks.
5. Authorize the City Manager to execute a contract in the amount of $544,928.52 with PB Loader Corporation of Fresno, CA, to replace two ten-wheel dump 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 motion.
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Summary
The Public Works Department recommends the replacement purchase of various pieces of heavy equipment utilizing cooperative purchasing agreements through Sourcewell. The proposed replacement units have surpassed their stated lifecycles, hours, and have multiple mechanical deficiencies (Attachment A).
Sourcewell is a public agency based in Minnesota that issues Cooperative Purchasing Agreements (COOPs) to simplify the procurement process for public agencies and take advantage of volume purchasing. Use of a COOP streamlines administrative costs and procedures while maintaining the integrity of the competitive bidding process. The specifications for the utility compactor, two bucket trucks, and two ten-wheel dump trucks available through Sourcewell meet the City’s requirements for this type of equipment.
It is recommended that Council approve a motion authorizing the City Manager to execute three COOPs through Sourcewell for a total of $1,169,833.90 for the purchase of one utility compactor, two bucket trucks, and two ten-wheel dump trucks (Attachments B-D).
DISCUSSION
Background
The Public Works Department utilizes various pieces of equipment to complete their daily tasks such as maintaining City traffic signals, repairing streets, and removing debris from encampment and slough cleanups.
The City’s replacement criteria for heavy equipment, based on industry standards for performance and efficiency, is 15 years while a service body truck 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. Fleet staff identified five pieces of equipment that exceed the age and/or mileage criteria or have recurring mechanical or operational issues (Attachment A). Replacement of these units is recommended.
Present Situation
Staff recommends the replacement purchases of one utility compactor, two bucket trucks, and two ten-wheel dump trucks utilizing COOPs with Sourcewell. The proposed large equipment will replace five existing, equivalent assets to better serve the operational needs of Public Works.
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 motion authorizes the City Manager to execute three COOPs through Sourcewell for a total of $1,169,833.90 for the following purchases:
• $108,720.80 with Caterpillar, Inc. through affiliated vendor, Holt of CA of Stockton, CA, to purchase one utility compactor (Attachment B).
• $516,184.58 with Altec Industries, Inc. of Dixon, CA, to purchase two bucket trucks (Attachment C).
• $544,928.52 with PB Loader Corporation of Fresno, CA, to replace two ten-wheel dump 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 COOPs with Caterpillar, Inc., Altec Industries, Inc., and PB Loader Corporation to provide access to preferential pricing of heavy equipment.
2. Caterpillar, Inc., Altec Industries, Inc., and PB Loader Corporation COOPs 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 sufficient funding available in the Fleet ISF, Equipment Acquisition, Account No. 4530-718-800004-500-000-00-45-000-000, for the purchase of one utility compactor, two bucket trucks, and two ten-wheel dump trucks for a total amount of $1,169,833.90.
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 - Equipment Replacement List
Attachment B - COOP with Caterpillar, Inc. through affiliated vendor Holt of CA
Attachment C - COOP with Altec Industries, Inc.
Attachment D - COOP with PB Loader Corporation