TO: Honorable City Council
FROM: City Manager
SUBJECT: A Resolution of the City Council of Commerce, California, Authorizing a Purchase of a Forklift from Atlas Material Handling for the Central Receiving Warehouse and Food Distribution MEETING DATE: May 14, 2024
RECOMMENDATIONS:
Approve the purchase of a Toyota (Model: 50-8FGU25) Forklift for Warehouse operations for $43,850 through the United States General Services Administration Cooperative Purchase Contract.
Declare existing equipment (Unit #713) surplus.
BACKGROUND:
The Central Receiving Division uses a 1974 Toyota stand-up forklift to load and unload their receivable and deliverable items. However, the forklift is over 50 years old and has surpassed its useful life, making it unsuitable for the department's needs. Furthermore, the Library Department uses the same forklift for their food distribution services as required.
Unit #
YEAR
MAKE
MODEL
VIN
713
1974
Toyota
FGC10
FGC10-15074
On September 12, 2023, the City Council approved capital outlay items, including purchasing a new forklift for Central Receiving Services and Food Distribution for $48,000. The transportation staff, in consultation with Central Receiving and Library staff, identified and specified the necessary forklift to meet the needs of their divisional operations. Also, the forklift acquisition can be done using the cooperative agreement through GSA Contract # GS-07F-115AA for Warehouse Equipment Supplies Category 333922.
The purchase of the Toyota forklift is crucial for the continued operation of Central Receiving and Library, and the GSA contract documents comply with all State and City procurement requirements.
SURPLUS
The City Council will declare the forklift referenced above surplus under Section 3.16.130 of the City of Commerce Code and authorize its sale at a public auction on the City’s website. The City Manager is authorized to determine whether any item of city-owned personal property is surplus to the present or future needs of the city. The City Manager shall offer such items so declared to be surplus for sale on a competitive bid basis. Bids may be solicited by him or by the purchasing agent by written request, telephone, public notice posted on city property, public auction, advertisements in any newspaper or magazine, or any combination of such methods.
When, after a reasonable effort has been made to obtain bids, no bids have been obtained for any item of city-owned personal property so declared to be surplus, the City Manager is authorized to dispose of such item for the highest scrap value that can be obtained therefor, and if a reasonable effort to do so produces no opportunity to sell the same for scrap, he may cause its destruction or any other disposition thereof.
ANALYSIS:
A cooperative purchase contract (GS-07F-115AA) will be used to purchase forklifts, lift trucks, accessories, and related handling equipment. The United States General Services Administration (GSA) initiated the contract. Toyota Material Handling was one of the successful vendors contracted to provide these products and services. The contract started on January 15, 2013, and will remain valid until January 14, 2028.
GSA is the biggest purchasing cooperative in the United States, which enables thousands of public agencies and educational institutions to combine their purchasing power. In accordance with their public purchasing rules and regulations, a leading public agency has competitively solicited GSA contracts. Each solicitation contains language advising all suppliers of the subsequent contract (see attached contract terms and conditions) that other government agencies throughout the United States may use. GSA contracts are established to meet both competitive solicitation and consent requirements.
FISCAL IMPACT
The proposed purchase of the Toyota Forklift is approximately $48,000 for FY24.
Forklift Subtotal $ 39,684
Taxes $ 4,166
10% Contingency $ 4,150
Total $ 48,000
RELATIONSHIP TO STRATEGIC GOALS
This agenda item pertains to the 2016 Strategic Planning Goal of remaining fiscally responsible while providing quality services to the area's residents. The purchase of the Toyota Forklift will ensure the safe loading and unloading of deliverables/receivables at Central Receiving and the Library Food distribution program.
ALTERNATIVES:
Approve staff's recommendation.
Reject staff's recommendation.
Provide staff with alternate or further direction.
Prepared and recommended by: Claude McFerguson, Director of Transportation Fiscally reviewed/Respectfully submitted by: Vilko Domic, Assistant City Manager Approved as to form: Noel Tapia, City Attorney
Attachments:
Resolution
Atlas Toyota Quote
GSA Contract GS-07F-115AA
CITY OF COMMERCE
AGENDA REPORT
Item No.