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APPROVE FINDINGS AND PURCHASE OF ONE HIGH-CAPACITY CRANE TRUCK
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RECOMMENDATION
It is recommended that the City Council approve a motion to approve:
1. findings supporting an exception to the competitive bid process, and
2. the purchase of one Peterbilt 365 high-capacity crane truck through a National Joint Powers Alliance (NJPA) contract with Altec Industries, Inc., of Dixon, CA, in the amount of $349,350.45.
It is further recommended that the motion authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
The Fleet Manager is recommending the replacement purchase of one crane truck currently used by the Municipal Utilities Department (MUD). The replacement truck will be purchased through a NJPA contract with Altec Industries, Inc. The total purchase cost of the equipment is $349,350.45 (Attachment A).
DISCUSSION
Background
The MUD uses crane trucks for lifting and transporting heavy items such as large scale pumps and motors. These crane trucks are built by installing a specialized service body with an aerial device onto a heavy duty truck chassis. Unit No. 2095 is a 1989 crane truck with 3,229 hours of service. This unit has experienced numerous breakdowns in recent years. The Fleet Manager recommends replacement of one crane truck, Unit No. 2095 with a new unit.
Present Situation
The NJPA establishes and provides nationally leveraged and competitively solicited purchasing contracts under the guidance of the Uniform Municipal Contracting Law (Attachment B).
Joint Powers laws enable state and local governments to legally purchase through NJPA awarded contracts.
The selection of a NJPA approved contractor streamlines the required purchasing process, reduces the net purchasing cost by obtaining low bids, without the expenses associated with conducting the bid process. Staff time and related costs to develop specifications and prepare documents are minimized.
Altec Industries, Inc., of Dixon, CA, is the regional supplier for crane truck equipment acquired through the NJPA contract. The specification for the Peterbilt 365 crane truck available through Altec Industries, Inc. meets the City’s requirements for this type of equipment. Staff recommends purchase of a new replacement crane truck from Altec Industries, Inc. by utilizing a cooperative purchasing agreement with the NJPA.
There is no local vendor that constructs specialized, modified trucks of this type. The units available through the NJPA contract are custom built for this type of use by Altec Industries, Inc. The typical build time for specialized heavy equipment is 8 to 12 months; however, Altec Industries, Inc. has a unit under construction that could be delivered within one month of approval. Staff researched other options for purchase of a similar type of truck through cooperative purchases with the cities of Berkeley and Sacramento, but both options proved to be cost-prohibitive in comparison to the NJPA pricing.
The recommended motion authorizes the replacement purchase of one crane truck from Altec Industries, Inc. at a total cost of $349,350.45 (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 through a cooperative purchasing agreement. Proposed findings to support this purchase are as follows:
1) The City is a member of NJPA, which has established a cooperative purchasing agreement for the purchase of one custom built Peterbilt 365 high-capacity crane truck.
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
There are sufficient funds available in the MUD Vehicle Acquisition accounts (431-4331-606 and 431-4333-606) to purchase one crane truck for a total purchase price of $349,350.45.
The following is the cost breakdown:
One Peterbilt 365 Crane Truck $ 320,505.00
Sales Tax (9%) $ 28,845.45
Total Purchase Price $ 349,350.45
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 Altec Industries, Inc.
Attachment B - Altec Industries, Inc. NJPA Contract Award