February 18, 2025, Item #3DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway February 18, 2025 Honorable Mayor and Members of the City Co~cil Eric Heidemann, Director of Public Works q \A Michael Obermiller, Public Works Operations Mana~ (858) 668-4722 or [email protected] ~ CITY COUNCIL Authorization to Purchase One (1) Utility Truck Body Utilizing Omnia Cooperative Purchasing Program Contract #159469 and Appropriation of Funds The approved Fiscal Year (FY) 2024-25 operating budget includes funding to purchase one (1) utility truck body. The City participates in and is a member of several cooperative purchasing organizations, including Omnia, which establish and provide nationwide competitively solicited purchasing contracts to be utilized by member agencies. Omnia presented optimal pricing for one (1) utility truck body from Safeware, Inc. (Contract #159469) in the amount of $84,179.69. The utility truck body meets the City's service requirements and specifications. Recommended Action: It is recommended the City Council adopt a resolution authorizing the purchase of the following equipment: 1) One (1) utility truck body at a total cost of $84,179.69 from Safeware, Inc. utilizing Omnia Cooperative Purchasing Contract #159469; 2) Authorize an appropriation from the Water Fund Balance in the amount of $42,514.42 to 402560-61040 shown in the Fiscal Impact section of this report; and 3) 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 truck body. 1 of 5
February 18, 2025, Item #3One cab and chassis for a utility truck was previously approved for purchase at the August 6, 2024 City Council meeting. At that time, City staff stated the utility truck body quote would be brought back for approval at a later date. The utility truck is utilized by the Public Works Water Transmission/Distribution division to support potable water distribution line and valve repairs. The custom utility truck body consists of a crane, large built-in toolboxes, oxygen acetylene mounts and accessories, and overhead storage for specialized tools. When possible, City staff reaches out to local dealers for quotes. Due to specialized requirements, no business in Poway offers the truck body fabrication services needed for this vehicle. City staff was able to obtain a quote through the Omnia Cooperative Purchasing Program (Contract #159469). The quote for the utility truck body exceeds the amount budgeted for its replacement by $42,514.42. All 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., state, 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. The total quote for the utility truck body is $84,179.69. Copies of the quote are on file with the Public Works Department. 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 setting aside a portion of the anticipated replacement costs each year, along with adjustments for inflation. 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 truck body. The total cost of the utility truck body to be purchased as a result of this action is $84,179.69. A total of $41,665.27 from FY2024-25 Capital Replacement Funds (115010-61040) and the division's split-funding account (402560-61040) is budgeted and available for the purchase of this equipment. Due to higher-than-expected inflation, ongoing supply chain challenges, and increased equipment costs for the utility truck body, an appropriation in the amount of $42,514.42 is requested from the Water Fund to the Water Transmission and Distribution Division (402560-61040) to cover the difference between the available funds and the purchase price. These factors result in a cost increase beyond assumed inflation, including amounts the City set aside for this purchase. In recent budget cycles the City has comprehensively reviewed set aside amounts for future replacements to better account for inflation and supply chain issues that impact future replacements. Public Notification: None. 2 ofS
February 18, 2025, Item #3Attachments: A. Resolution Reviewed/ Approved By: Wend;;erman Assistant City Manager 3 of 5 Reviewed By: Alan Fenstermacher City Attorney Approved By: ff!1ff/i2: City Manager
February 18, 2025, Item #3RESOLUTION NO. 25-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, AUTHORIZING THE PURCHASE OF ONE (1) UTILITY TRUCK BODY UTILIZING OMNIA COOPERATIVE PURCHASING PROGRAM CONTRACT #159469, AND APPROPRIATION OF FUNDS 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, each year several of these vehicles and pieces of equipment must be replaced as they exceed their useful life or have excessive mileage; WHEREAS, the City proactively plans for the replacement of these vehicles and pieces of equipment by accumulating resources in the Capital Replacement Equipment Fund through annual rent charges to the various departmental operating budgets associated with the use of such vehicles and equipment; WHEREAS, any additional amounts estimated to be required to replace vehicles and equipment in the year of the planned replacement that are in excess of the amounts accumulated in the Capital Replacement Equipment Fund are funded through additional amounts budgeted in the various departmental operating budgets associated with the use of such vehicles and equipment, thereby helping to ensure the financial sustainability of the Capital Replacement Equipment Fund; WHEREAS, the Fiscal Year 2024-25 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; and WHEREAS, Poway Municipal Code Section 3.28.110 provides for the use of cooperative purchasing programs for the purchase of supplies, services, and equipment when the administering agency has made their purchase in a competitive manner. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The purchase of one utility truck body from Safeware, Inc. utilizing Omnia Cooperative Purchasing Program Contract No. 159469, at total cost of $84,179.69, is authorized. SECTION 2: The City Council authorizes the following appropriation of $42,514.42, from the Water Fund Balance to Water Transmission and Distribution Division account number 402560-61040 for the purchase of one utility truck body. SECTION 3: The City Manager is hereby authorized to execute any documents necessary for these purchases. 4 ofS ATTACHMENT A
February 18, 2025, Item #3Resolution No. 25-Page 2 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Poway, California on the 18th day of February, 2025 by the following vote, to wit: AYES: NOES: ABSTAINED: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 5 of 5