TO: Honorable City Council
FROM: City Manager
SUBJECT: A Resoluton of the City Council of the City of Commerce, California, Approving the Purchase of One (1) Electric Toyota Forklift Model 05-8FBM25T from Atlas Toyota Material Handling MEETING DATE: August 9, 2022
RECOMMENDATION:
It is recommended that the City Council approve the purchase of one (1) Electric Toyota Forklift Model 05-8FBM25T from Atlas Toyota Material Handling, for $61,506, through a Cooperative Purchase Contract, Via the United States General Services Administration (GSA).
BACKGROUND:
On July 12, 2022, the City Council approved purchasing a propane-powered forklift (Model # 50-8FGU25) for $40,632. However, staff was recently notified by Atlas Toyota that the propane-powered forklifts are on backorder for 12-14 months due to a lack of equipment availability.
Transportation’s existing forklift (Unit #382, 1992, Clark Forklift) has exceeded its useful life and is no longer operational. As a result, the City has been renting a forklift since February 2022 at a cost of $1,200 per month.
A replacement forklift is required and will be used by transportation maintenance personnel to load and unload pallets from delivery trucks and haul other heavy equipment and supplies throughout the shop area.
Purchase Options
Cost
Delivery
Electric Forklift
$61,506
60-90 Days
Propane Forklift $40,632 + Rental Fees $22,800
$63,432
12-14 Months
Based on the above cost analysis, staff has deemed that it is more cost-effective for the City to purchase the electric forklift that is currently in stock, with a delivery of approximately 60-90 days.
ANALYSIS:
The purchase will be accomplished through a Cooperative Purchase Contract via Request for Proposal (RFP) Contract # GS-07F-115AA, initiated by the United States General Services Administration (GSA), whereby Toyota Material Handling was one of the successful vendors contracted to provide Forklifts, Lift Trucks, and Related Handling Equipment, Attachments, Accessories, and Services. The contract commenced on January 15, 2013, and is good through January 14, 2023.
GSA is the nation’s largest purchasing cooperative, connecting thousands of public agencies and educational institutions to create immense purchasing power. A lead public agency has competitively solicited GSA contracts in accordance with their public purchasing rules and regulations. Each solicitation contains language that advises all suppliers of the subsequent contract (see attached contract terms and conditions) that other government agencies may use throughout the United States. GSA contracts are established to meet both the competitive solicitation and consent requirements.
FISCAL IMPACT:
The cost of the forklift purchase and funding source is shown below.
PRICING
Item Price Quantity Cost
Toyota Forklift Model 05-8FBM25T $61,506 1 $ 61,506 Contingency (6%) $ 3,494 1 $ 3,494
TOTAL COST $ 65,000
PROJECT FUNDING SOURCE
Federal 5307 Capital Funds $ 65,000
The total cost of this project shall be covered 100% with approved Federal Grant Funds (5307 Funds) in the amount of not to exceed $65,000 and have no impact on the City’s operating budget. This project has been approved by the Southern California Association of Governments (SCAG), Los Angeles County Metropolitan Authority (Metro), and the Federal Transportation Administration (FTA); and is included as part of the regional Federal Transportation Improvement Plan (FTIP - Project ID: LA9919030).
ALTERNATIVES:
Approve recommendation
Reject recommendation
Provide staff with further direction
RELATIONSHIP TO STRATEGIC GOALS:
This agenda item relates to the 2016 Strategic Plan - Goal #6: “Enhance Quality of Life Goal”; this item helps the City provide better, safer, reliable, and more effective transportation services to the community, which improves the quality of life in Commerce.
Respectfully submitted: Edgar P. Cisneros, City Manager Approved by: Claude McFerguson, Director of Transportation Reviewed by: Josh Brooks, Director of Finance
Reviewed by: Vilko Domic, Assistant City Manager
Approved as to form: Noel Tapia, City Attorney
Attachments: Resolution
Price Quote
GSA Contract GS-07F-115AA
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CITY OF COMMERCE
AGENDA REPORT
Item No.