ADMINISTRATIVE REPORT
MEETING DATE: February 26, 2025 AGENDA CATEGORY: Consent - Resolutions TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: February 18, 2025
SUBJECT: Dispense with bidding for the purchase of a forklift for the Solid Waste Division in the amount of $180,179.
1.Resolution determining that a forklift can most efficiently be obtained through cooperative procurement bidding procedures from Hyster-Yale Group Material Handling Equipment and Solutions and authorizing the Finance Director to dispense with bidding thereof, not to exceed $108,179 for the Solid Waste Division
2.Appropriate and transfer $92,135 Refuse Enterprise Fund balance to the Public Works Operating Budget within the Equipment Management Fund.
3. Appropriate $16,044 Equipment Management Fund balance to the Public Works Operating Budget within the Equipment Management Fund.
RECOMMENDATION:
Staff recommend adoption of the resolution and approval of the appropriation and purchase
BACKGROUND:
This unbudgeted purchase of a forklift for the Solid Waste Division, previously approved by staff, will replace a unit that needs major repairs. It is not economically feasible to proceed with the repairs needed as the cost of the repairs exceeds the value of the unit. The unit meets the criteria for replacement as determined by the Fleet Division and will be replaced with a new unit providing more efficiency.
The City municipal code section 3.20.060(D)(6) allows the City to dispense with bidding when it is determined that the equipment is not available from local vendors and that it is in the best interests of the City, and to the City’s economic advantage that such equipment be obtained at the lowest possible cost by entering into a cooperative procurement contract that was competitively bid within the last thirty- six months or is one that is still active and valid.
Hyster-Yale Group Material H andling Equipment and Solutions has entered into a competitive procurement contract with Sourcewell to offer discount pricing for their equipment. The delivering dealer will be Pape Material Handling, Bakersfield. Staff recommend adoption of the Resolution to dispense with bidding for the purchase of a forklift from Hyster-Yale Group Material Handling Equipment and Solutions, not to exceed $108,179 for the Solid Waste Division.
FISCAL IMPACT:
This unbudgeted purchase requires full appropriation in the amount of $108,179. An appropriation and transfer of $92,135 from the Refuse Enterprise Fund balance to the Public Works Operating Budget will be necessary to fund the purchase of the unit. Additionally, accumulated funds recovered through rental rates in the amount of $16,044 will need to be appropriated from the Equipment Management Fund balance to the Public Works Operating budget to be used towards the purchase of the unit . Due to the fact that almost 90% of the cost is being covered by the Enterprise Fund, there is little fiscal impact to the City General Fund.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
1. Resolution
2. Quotes