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VEHICLE PURCHASE AGREEMENTS WITH
MULTIPLE VENDORS FOR 18 REPLACEMENT
VEHICLES
City Council
April 18, 2023
Public Utilities Department
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2 Biennial Budget
1. On June 21, 2022, City Council approved the Fiscal Year 2022-2024 Biennial Budget which included $862,063 for the financing of $4.8 million to replace 23 heavy equipment vehicles for the Water Field Division.
2. The department has received new quotes which indicate pricing has increased from the time the budget estimates were gathered.
3. As a result, the list of equipment has been reduced to 18 vehicles to remain within the previously approved budget amount.
BACKGROUND
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3 1. The Water Field Division uses these vehicles and equipment daily to provide safe and reliable water service to its customers.
2. Equipment operating beyond its economic and useful life (>30 years) needs to be replaced to ensure operating
efficiency, employee productivity, and public safety.
3. Aging equipment is more prone to significant mechanical failures, causing increased maintenance/repair costs and downtime for field employees during vehicle/equipment
maintenance.
4. 10 needed vehicles removed from the fleet due to compliance rules with state and local emissions regulations.
OPERATIONAL USE/NEED
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4 5. The proposed equipment represents a selection of the division’s most heavily used equipment.
6. This equipment is vital to support Water Field and
Operations, and when the equipment experiences major
mechanical breakdown, it is not uncommon for the
equipment to be down for multiple weeks.
7. Additionally, significant repair work on older equipment comes with a higher premium, due to limited availability of parts and additional time to complete repairs.
OPERATIONAL USE/NEED
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5 EQUIPMENT TYPE QUANTITY ESTIMATED COST PER VEHICLE TOTAL ESTIMATED COST Service Truck Freightliner 114SD 5 $ 400,000 $ 2,000,000 Dump Truck Peterbilt 16’ Dump 6 $ 350,000 $ 2,100,000
Small Meter Truck Ford
F350/450/550 1 $ 150,000 $ 150,000
Arrow Board 3 $ 8,000 $ 24,000
Cargo Van (Ops) 2 $ 50,000 $ 100,000
Boom Truck Elliot - 1870F (70’
boom) 1 $ 440,000 $ 440,000
TOTAL $ 4,814,000
PROPOSED NEW VEHICLES
*Costs reflected in Table A are estimates of actual cost per vehicle. The heavy equipment market has been heavily impacted by fluctuations in price and availability, and the list of equipment may need to be modified as current market conditions arise during the purchasing process.
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6 Current Heavy Equipment Market
1. Due to global microchip shortages and other production delays, the supply of vehicles has decreased but the demand continues to remain the same or has increased.
2. Many manufacturers are selling their vehicles on a first-come, first-served basis and are unwilling to hold vehicles in order to facilitate conventional City procurement processes.
3. Due to the fluctuations in price and availability in heavy equipment market, the list of equipment may need to be
modified as current market conditions arise during the
purchasing process.
MARKET CONDITIONS
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7 1. Sourcewell, formerly National Joint Powers Alliance (NJPA) uses cooperative contract pricing to leverage purchasing power of more than 50,000 member agencies.
2. Provides nationally leveraged and competitively solicited purchasing contracts to ensure lowest pricing available on the market.
3. Using cooperative purchasing will expedite the ordering process while maintaining compliance with City purchasing rules.
4. Allowable under Purchasing Resolution No. 23914, Article Six – Acquisition of Goods, Section 602 Exceptions: Competitive Procurement through Informal Procurement and Formal
Procurement processes shall not be required...(f) When
Cooperative Purchasing is available and undertaken or when goods can be obtained through Federal, State and/or other public entity pricing contracts or price agreements.
FINANCE/PURCHASING PLAN
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8 5. The heavy equipment will be purchased using
competitive loan financing allowing the City to
spread the cost of the vehicles and equipment over a
set term.
FINANCE/PURCHASING PLAN
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9 Priority 6 - Infrastructure, Mobility and Connectivity Goal 6.2 – Maintain, protect, and improve assets and
infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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10 That the City Council:
1. Approve vehicle purchases in compliance with Purchasing Resolution No. 23914, Article Six: Acquisition of Goods, Sections 602 (f) and 602 (p), using Sourcewell Cooperative Purchasing for the Water Field and Operations divisi ons for an estimated amount of $4,814,000, plus interest, with various vendors, subject to the availability of budgeted funds; and
2. Authorize the City Manager, or designee, to execute the individual purchase agreements, purchase orders, and all necessary d o c u m e n t sa sn e e d e df o rt h e s ei n d i v i d u a lp u r c h a s e sw i t ha l l authority for such, including approval of minor and/or non- substantial changes, expiring on September 30, 2023.
RECOMMENDATIONS
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