June 4, 2024, Item #19DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA RE PO RT City of Poway CITY COUNCIL June 4, 2024 Honorable Mayor and Members of the City C~~ncil Eric Heidemann, Director of Public Works iz'I< Michael Obermiller, Public Works Operations Manager~ (858) 668-4722 or [email protected] Authorization to Purchase One (1) Utility Body by Informal Bid The City of Poway's approved Fiscal Year 2023-24 operating budget includes funding to purchase one (1) utility body. Utilizing an informal competitive bid process, the City requested quotes for one (1) utility body through the Omnia cooperative purchasing contract and pricing from a nearby utility body fabricator. For optimal pricing, it is recommended to waive the City's formal bidding procedures and award the utility body purchase through an informal bidding process to Abacor, Inc. The total estimated purchase price for the utility body is $87,141.25, and meets the City's service requirements and specifications. Recommended Action: It is recommended the City Council adopt the resolution authorizing the purchase of the following equipment: 1) One (1) utility body ($87,141.25) from Abacor, Inc. through an informal bid process; and 2) Authorize the City Manager to execute any necessary documents. Discussion: The City operates and maintains over 125 street-legal vehicles and other heavy equipment for the purpose of inspecting, maintaining and operating City facilities and infrastructure. Annually, several of these vehicles and pieces of equipment must be replaced as they have exceeded their useful life or have excessive mileage. The current budget contains funding to replace one (1) utility body. One cab and chassis for a utility truck was previously approved for purchase at the October 3, 2023 City Council meeting. At that time, City staff stated the utility body quote would be brought back for approval at a later date. Since then, City staff was able to obtain quotes through the Omnia Cooperative Purchasing Program (Contract #159469) and Abacor, Inc. The quote for the utility body is within the budgeted amount. 1 of 5
June 4, 2024, Item #19All agreements offered through the Omnia Cooperative Purchasing Program have been awarded via a thorough Request for Bid (RFB) competitive solicitation program by a public agency/government entity (e.g., date, city, county, public university or school district). The program provides a streamlined and effective procurement option by establishing agreements with manufacturers and suppliers currently on an existing multiple award schedule with a competitive procurement procedure. Section 3.28.110 of the Poway Municipal Code permits the use of cooperative purchasing programs for procurement of supplies, services, and equipment when the administering agency has made their purchase in a competitive manner. In addition to reviewing pricing from the cooperative purchasing contract, staff obtained an informal quote from Abacor, Inc., a utility body fabricator based in El Cajon, CA. No City of Poway vendors fabricate utility truck beds. As such, Abacor, Inc. was able to provide an overall lower price compared to the Omnia cooperative purchasing contract. Staff is requesting authorization of a purchase order to Abacor, Inc. for an estimated total cost of $87,141.25. The quotes for the utility body are as follows: Company Quote Abacor, Inc. $87,141.25 Safeware, Inc. $96,379.38 Omnia Contract #159469 Copies of all quotes are on file with the Public Works Department. After evaluation of various purchasing options and pricing, staff determined that it is in the best interest of the City not to proceed with its own formal bid process or utilize the bid process of the cooperative contract, and as such, recommends the formal bidding procedures are waived for the following reasons: 1. The informal bid from Abacor, Inc. for the utility body is less than the Ominia cooperative purchasing contract, which itself was publicly bid; 2. The requirement of Poway Municipal Code Chapter 3.28 that the purchase be formally bid will tie up staff resources from other projects and will not likely result in a lower price for the utility body given the City's historical experience; and 3. The procurement of the one (1) utility body from Abacor, Inc. will save Poway residents tax dollars on this purchase. Environmental Review: This action is not subject to review under the California Environmental Act (CEQA). Fiscal Impact: The City proactively plans for the replacement of its vehicles and equipment by annually setting aside a portion of the anticipated replacement costs along with inflationary cost adjustments to account for increases in equipment costs. The purchase will be made with funds from the Capital Replacement Fund (115010-61040) along with the division's operating budget (split-funded), for the purchase of one (1) utility body. The total cost of the equipment to be purchased as a result of this action is $87,141.25. The full amount 2 of 5
June 4, 2024, Item #19from Fiscal Year 2023-34 Capital Replacement Fund (115010-61040) and division split-funding account (413040-61040) is budgeted and available for the purchase of this item. Public Notification: None. Attachments: A. Resolution Reviewed/ Approved By: Wendy Kaserman Assistant City Manager 3 ofS Reviewed By: Alan Fenstermacher City Attorney Approved By: Chris Haz City Manager
June 4, 2024, Item #19RESOLUTION NO. 24-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, AUTHORIZING THE PURCHASE OF ONE (1) UTILITY BODY BY INFORMAL BID WHEREAS, the City of Poway (City) operates and maintains over 125 street-legal vehicles and other heavy equipment for the purposes of inspecting, maintaining and operating City facilities and infrastructure and to provide public safety services; WHEREAS, one cab and chassis for a utility truck was previously approved for purchase at the October 3, 2023 City Council meeting; WHEREAS, City staff stated the utility body quote would be brought back for approval at a later date, and staff was able to obtain quotes through the informal bid process; WHEREAS, City staff obtained quotes through the Omnia Cooperative Purchasing Program (Contract #159469) and Abacor, Inc. and found Abacor, Inc. to be the lowest quote at $87,141.25; and WHEREAS, the Fiscal Year 2023-24 adopted operating budget includes amounts budgeted in both the Capital Replacement Equipment Fund and in departmental operating budgets for the purchase or replacement of various vehicles and equipment. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The purchase of One (1) utility body, utilizing the informal bid process through Abacor, Inc., at total cost of $87,141.25, is authorized. SECTION 2: The City Manager is hereby authorized to execute any documents necessary for this purchase. 4 of 5 II II II II II II II II II ATTACHMENT A
June 4, 2024, Item #19Resolution No. 24-Page 2 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of June, 2024 by the following vote, to wit: AYES: NOES: ABSTAINED: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 5 ofS