CITY OF
LONG
Department of Financial Management
411 West Ocean Boulevard, 6th Floor
Long Beach, CA 90802
562-570-6425
August 2, 2022
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
C-12
Adopt a Resolution authorizing the City Manager, or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with Arizona Machinery, Inc., dba Stotz Equipment, a local distributor of John Deere Construction Retail Sales, of Moline, IL, for the purchase of a John Deere 332G Skid Steer, with related equipment and accessories, on the same terms and conditions afforded to Sourcewell (formerly the National Joint Powers Alliance), in a total amount not to exceed $146,000, inclusive of taxes and fees. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Arizona Machinery, Inc., for the purchase of a John Deere 332G Skid Steer, including a hydraulic hammer, backhoe, sweeper broom, and other accessories. This unit is an approved Fiscal Year 2021 enhancement and will be used by the Public Works Department, Traffic Operations Division, for excavation of conduit, installation of traffic signals and streetlight foundations, and removal of construction debris.
City Council authorized the purchase of the same piece of equipment from John Deere Construction Retail Sales on February 8, 2022. However, the Financial Management Department misinterpreted the vendor's contract authority, which resulted in the inability to purchase the intended equipment off the previously authorized Council action. Arizona Machinery, Inc., the local distributor for John Deere Construction Retail Sales, has agreed to hold pricing from the previously approved purchase. The presently proposed contract will be used in lieu of the original approved contract.
The Fleet Services Bureau of the Financial Management Department researched procurement options for heavy construction equipment and discovered other agencies had completed an open, fair, transparent, and competitive procurement process. The City of Long Beach (City) reviewed the cooperative agreement options and determined that the contract between Sourcewell and Arizona Machinery, Inc. provided the best value to the City. John Deere was selected based on the best value to the City.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment, and labor
HONORABLE MAYOR AND CITY COUNCIL
August 2, 2022
with other governmental agencies. This alternative procurement method can save time and reduce costs through economies of scale by purchasing under existing contracts from other government agencies on a voluntary and selective basis, when authorized by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Anita Lakhani on July 6, 2022, Business Services Bureau Manager Tara Mortensen on June 24, 2022, and by Revenue Management Officer Geraldine Alejo on June 29, 2022.
SUSTAINABILITY
The Skid Steer has a tier-4 diesel engine with advanced emissions controls, certified by the California Air Resources Board, which significantly reduces greenhouse gas, nitrous oxide, and particulate emissions.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on August 2, 2022, to ensure that the contract is in place expeditiously.
FISCAL IMPACT
The total amount of the contract will not exceed $146,000, inclusive of taxes and fees.
This unit is budgeted in the General Fund Group in the Public Works Department.
Ongoing maintenance and replacement costs for this unit are estimated at $20,501 annually and will be billed to the General Fund Group in the Public Works Department and collected through the Fleet Services Bureau Memorandum of Understanding (MOU) process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with the City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
J0_ P--1~
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
ATTACHMENT- RESOLUTION
APPROVED:
THOMAS B. MODICA
CITY MANAGER
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802 -4664
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AGREEMENT WITH
ARIZONA MACHINERY, INC. DBA STOTZ EQUIPMENT, A
LOCAL DISTRIBUTO R FOR JOHN DEERE
CONSTRUCTION, FOR THE PURCHASE OF A JOHN
DEERE 332G SKID STEER, WI TH RELATED EQUIPMENT
AND ACCESSORIES, ON THE SAME TERMS AND
CONDITIONS AFFORDED TO SOURCEWELL (FORMERLY
THE NATIONAL JOINT POWE R ALLIANCE) IN A TOTAL
AMOUNT NOT TO EXCEED $146,000
WHEREAS, the Charter of the City of Long Beach (the “City”), Section 1802, permits the City to purchase services, supplies, materials, equipment and labor with other government agencies by purchasing under their contracts on a voluntary and selective basis when authorized by resolution; and
WHEREAS, the City desires to purchase a John Deere 332G Skid Steer, with related equipment, including a hydraulic hammer, backhoe, sweeper broom, and other accessories for use by the Public Works D epartment, Traffic Operat ions Division, for excavation of conduit, installation of traffic signals and streetlight foundations; and WHEREAS, City Council authorized the purchase of the same piece of equipment from John Deere Construction Reta il Sales on February 8, 2022, however the vendor was unable to execute for the intended pr ice. Arizona Machiner y, Inc. dba Stotz Equipment, a local distributor of John Deere Construction Reta il Sales of Moline, IL, has agreed to hold pricing from the previously City Council approved purchase.
WHEREAS, Sourcewell (formerly the Na tional Joint Power Alliance) has a
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802 -4664
cooperative agreement with Ariz ona Machinery, Inc. dba Stot z Equipment providing the best value to the City for the purchase of a John Deere 332G Skid Steer, with related equipment and accessories (“Sourcewell Contract”); and
WHEREAS, the City’s participation in the Sourcewell Contract will facilitate the City’s ability to purchase as well as provide considerable cost benefits to the City; and WHEREAS, if the City had to utilize a formal bid process rather than participate in the Sourcewell Contract, considerably more funds would be required; NOW, THEREFORE, the City Council of the City of Long Beach resolves as follows:
Section 1. The above recitals are true and correct and are incorporated herein by this reference.
Section 2. The City Manager or designee is hereby authorized to enter an agreement with Arizona Machinery, Inc. dba Stotz Equipment, for the purchase of a John Deere 332G Skid Steer with related equipment and accessories, of the same type and kind identified in the Sourcewell C ontract except as modified by mutual agreement of the City and Arizona Machinery, Inc. dba Stotz Equipment, and the pur chase by the City shall be on the same terms and conditions afforded to t he Sourcewell in an amount not to exceed One Hundred Forty-Six Thousand Dollars ($146,000) including taxes and fees.
Section 3. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. //
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802 -4664
I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of _________________________, 2022, by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s) Councilmembers:
City Clerk