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ADOPT RESOLUTION TO PURCHASE EQUIPMENT UTILIZED BY THE PUBLIC WORKS DEPARTMENT
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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. Approve the use of Cooperative Purchasing Agreements through Sourcewell Contract Nos. 110421-EEC, 110421-ALT, and 040621-PII to provide the City access to preferential pricing of equipment from Elliot Equipment Company, Altec Industries, Inc., and Petersen Industries, Inc.
3. Authorize the City Manager to execute a contract in the amount of $442,625.02 with Elliot Equipment Company through affiliated vendor, Nixon-Egli Equipment Company of Tracy, CA, to purchase one crane truck.
4. Authorize the City Manager to execute a contract in the amount of $176,634.36 with Altec Industries, Inc. of Bakersfield, CA, to purchase one chipper truck.
5. Authorize the City Manager to execute a contract in the amount of $289,615.60 with Petersen Industries, Inc. through affiliated vendor, Municipal Maintenance Equipment, Inc. of Sacramento, CA, to purchase one grapple truck.
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
The Public Works Department recommends the purchase of equipment utilized by the Public Works Department through Sourcewell. Sourcewell is a public agency based in Minnesota that issues Cooperative Purchasing Agreements to simplify the procurement process for public agencies and take advantage of volume purchasing. Use of a Cooperative Purchasing Agreement streamlines administrative costs and procedures while maintaining the integrity of the competitive bidding process. The specifications for the crane truck, chipper truck, and grapple truck available through Sourcewell meet the City’s requirements for this type of equipment.
It is recommended that Council adopt a resolution authorizing the City Manager to execute three Cooperative Purchasing Agreements through Sourcewell for a total of $908,874.98 for the purchase of one crane truck, one chipper truck, and one grapple truck.
DISCUSSION
Background
The acquisition of the equipment will continue to support Public Works, allowing the Electrical, Trees, and Community Enhancement divisions to complete their daily tasks. The grapple truck is an addition to the fleet. The crane truck and chipper truck will replace older units that will be removed from service upon delivery of the new replacement units.
The City’s replacement criteria for miscellaneous equipment, based on industry standards for performance and efficiency, is 15 to 20 years based on the equipment type. 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. Fleet staff identified two pieces of equipment that exceed the age and/or have recurring mechanical or operational issues (Attachment A). All other acquisitions are additions to the fleet and are reflected in the vehicle purchase and replacement list.
Present Situation
Staff recommends the replacement purchase of one crane truck and one chipper truck and the additional purchase of one grapple truck utilizing Cooperative Purchasing Agreements with Sourcewell.
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 resolution authorizes the City Manager to execute three Cooperative Purchasing Agreements through Sourcewell for a total of $908,874.98 for the following purchases:
• $442,625.02 with Elliot Equipment Company through affiliated vendor, Nixon-Egli Equipment Company of Tracy, CA, to purchase one crane truck (Attachment B).
• $176,634.36 with Altec Industries, Inc. of Bakersfield, CA, to purchase one chipper truck (Attachment C).
• $289,615.60 with Petersen Industries, Inc. through affiliated vendor, Municipal Maintenance Equipment, Inc. of Sacramento, CA, to purchase one grapple truck (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 Cooperative Purchasing Agreements for the purchase of equipment, including one crane truck with Elliot Equipment Company, one chipper truck with Altec Industries, Inc., and one grapple truck with Petersen Industries, Inc.
2. Elliot Equipment Company, Altec Industries, Inc., and Petersen Industries, Inc. Cooperative Purchasing Agreements 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 Fleet ISF Equipment Acquisition Account No. 4530-718-800004 for the purchase of one crane truck, one chipper truck, and one grapple truck, for a combined purchase amount of $908,874.98.
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 - Vehicle Purchase and Replacement List
Attachment B - Quote from Nixon-Egli Equipment Company
Attachment C - Quote from Altec Industries, Inc.
Attachment D - Quote from Municipal Maintenance, Inc.