Title:
Title
Cooperative Purchase Contract: Replacement Combination Sewer Cleaning Truck
End
FileID
File ID: 2021-00291
Location
Location: Citywide
End
Recommendation:
Recommendation
Pass a Motion: 1) approving the use of the Sourcewell cooperative purchase agreement with Atlantic Machinery, Inc. (Contract No. 122017-AMI) for the purchase of one replacement combination sewer cleaning truck from an authorized dealer, Municipal Maintenance Equipment, in an amount not to exceed $561,977; and 2) authorizing the City Manager or the City Manager’s designee to execute the purchase specified above.
FileName
Contact: Alison Kerstetter, Program Specialist, (916) 808-1163; Mark Stevens, Fleet Manager, (916) 808-5869, Department of Public Works
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Contract
Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division, has a customer requirement to purchase one combination sewer cleaning truck for the Department of Utilities, Wastewater Collection Division. The combination sewer cleaning truck will be used to clean and remove debris from the wastewater system.
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.56.
Economic Impacts: None
Environmental Considerations:
California Environmental Quality Act: No environmental review is necessary because the recommendations in this report involve the purchase of a vehicle and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
Sustainability: The recommended purchases are consistent with the updated Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478).
Commission/Committee Action: None
Rationale for Recommendation: The recommended purchase of one combination sewer cleaning truck is part of the normal replacement schedule completed by the Fleet Management Division each year. The trucks are essential in ensuring that the wastewater system does not back up into the streets or citizens homes.
After reviewing the available purchase options, the Fleet Management Division has determined that the Sourcewell cooperative purchase agreement with Atlantic Machinery, Inc. represents the most advantageous purchasing strategy. The contract was competitively bid nationally, and Sourcewell receives greater discounts from the manufacturer due to a higher purchase volume than the City would receive if issuing its own bid.
In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement method increases pricing competitiveness and lowers operating costs through volume buying. When comparing the administrative costs of procurement, staff considers product research, source selection, specifications, advertising, staff reports, awarding, protest, and administration of the contract.
The City has used both regional and national cooperative purchase agreements to complement its own contracting initiatives. Cooperative purchasing enables City departments to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing also leverages internal and external resources to maximize cost savings opportunities for the City.
Financial Considerations: The recommended purchase, in a total amount not to exceed $561,977 will be made from the Department of Public Works Fiscal Year (FY) 2020/21 operating budget (Fleet Fund, Fund 6501) and will be charged to the Department of Utilities Wastewater Fleet Project (I06146000, Fund 6006). Sufficient funding exists in the Department’s FY2020/21 operating budget and the Utilities Fleet Project (I06146000) to support the recommended purchase.
Local Business Enterprise (LBE): Atlantic Machinery, Inc. is not an LBE. The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.