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APPROVE PURCHASE OF ONE VIBRATORY ASPHALT COMPACTOR
recommended action
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 Vibratory Asphalt Compactor through a National Joint Powers Alliance (NJPA) contract with Holt of California, of Stockton, CA, in the amount of $149,012.61.
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
Public Works is recommending replacement of the Vibratory Asphalt Compactor currently used by Public Works Streets Maintenance Crew. The replacement Vibratory Asphalt Compactor will be purchased through a NJPA contract with Holt of California. The total purchase cost of the equipment is $149,012.61 (Attachment A - Quote from Holt of California).
DISCUSSION
Background
The Public Works Streets Maintenance Crew uses a Vibratory Asphalt Compactor to set and evenly distribute newly laid asphalt. The City’s existing Vibratory Asphalt Compactor, Unit No. 2718, is a 2001 model with 2,015 hours of service that is increasingly in need of maintenance. The unit being replaced is a foreign-made machine for which local maintenance support is non-existent. Parts are not available domestically and must be obtained offshore. The unit has been unreliable for the past five years, requiring the use of rented equipment for paving operations for the past three years at an average annual cost of approximately $25,000. It is vital that asphalt compaction equipment be reliable, as a breakdown will result in the waste of thousands of dollars of paving material. The Fleet Manager recommends replacement of this unit.
Present Situation
Staff proposes to purchase the replacement unit through a cooperative purchasing agreement with NJPA. The NJPA is a public agency based in Minnesota that serves as a municipal contracting agency. All NJPA contracts have been competitively solicited nationally, reviewed, evaluated by a committee, and then recommended to the NJPA Board of Directors for award in accordance with Minnesota public purchasing rules and regulations applicable to NJPA. The use of these contracts is optional, and is available to California State and local government agencies.
The specification for the Vibratory Asphalt Compactor available through the NJPA contract meets the City’s requirements for this type of equipment. By accessing this type of cooperative purchasing agreement, administrative costs are reduced because the NJPA obtains low bids for volume purchasing and local agencies avoid the expense associated with conducting the bid process. Staff time and associated costs to develop specifications and prepare documents are minimized.
The recommended motion authorizes utilizing the NJPA contract to purchase one Vibratory Asphalt Compactor. The NJPA contract establishes a low bid price from the manufacturer, which in this case is Caterpillar. A local dealer, Holt of California located in Stockton, will supply the unit at the NJPA price of $149,012.61 (Attachment A). The unit being replaced will be removed from the fleet and sold at auction.
Findings
Stockton Municipal Code Section 3.68.070 (B) 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) The NJPA has established a cooperative purchasing agreement for the purchase of one Vibratory Asphalt Compactor.
2) The NJPA established this cooperative purchasing agreement pursuant to a competitive bidding process.
3) The bid specification used by the NJPA has been assessed as compatible to the City’s standards.
Staff recommends replacement of this unit through the above-mentioned cooperative purchasing agreement.
FINANCIAL SUMMARY
The following is a cost breakdown:
One 2015 CB54B Vibratory Asphalt Compactor $ 136,708.82
Sales Tax (9%) $ 12,303.79
Total Purchase Price $ 149,012.61
There are sufficient funds available in Fleet Internal Service Fund Account No. 501-5060-670 for the purchase of one Vibratory Asphalt Compactor from Holt of California.
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 Holt of California