City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00300 5/9/2023 Consent Item 5.
Contract Supplement No. 1: Replacement Dump Trucks and Replacement Asphalt Patch Truck [Published for 10-Day Review 04/27/2023]
File ID: 2023-00300
Location: Citywide
Recommendation: Adopt a Resolution: 1) authorizing the City Manager or the City Manager’s designee to execute Contract Supplement No. 1 to Contract No. 2023-0058 with PB Loader (Sourcewell Contract No. 080521-PBL) for the purchase of seven Dump Trucks and one Asphalt Patch Truck for a amount not to exceed $1,672,151 for a revised contract not to exceed amount of $2,160,393; 2) authorizing the City Manager or the City Manager’s designee to execute the purchase specified above.
Contacts: Bobbie Small, Program Specialist, (916) 808-6711; Alison Kerstetter, Fleet Manager, (916) 808-1163, Department of Public Works
Presenter: None
Attachments:
1 - Description/Analysis
2 - Contract Supplement No. 1
3 - Resolution
Additional Description/Analysis
Issue Detail: The purchase of needed vehicles is included as part of the approved budget. All contracts over $250,000 require City Council approval, so most vehicle purchases are reviewed and approved by the City Council. The Department of Public Works, Fleet Management Division, has a customer requirement to purchase seven Dump Trucks and one Asphalt Patch Truck for the Department of Public Works, in Source Concrete and Pavement Maintenance Divisions. The eight new trucks are needed because they will be replacing eight trucks, which have reached the end of their useful life. The dump trucks will be used for removing debris from maintenance projects. The asphalt patch truck will be used to assist with repairing and maintaining roads throughout the city. The City has previously used this contract for vehicle purchases; this action would add these specific vehicle purchases and spending authority to the contract through a supplement to the original
File ID: 2023-00300 5/9/2023 Consent Item 5.
contract.
Policy Considerations: The recommendations in this report are in accordance with City Code Chapters 3.56 and 4.04.020 and Council Rules of Procedure, Chapter 7, Section E.2.d, which mandate that unless waived by a two-thirds vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on April 27, 2023, in compliance with the City Code.
Economic Impacts: None
Environmental Considerations:
California Environmental Quality Act: No environmental review is necessary because the recommendations in this report involve the purchase of vehicles and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
Sustainability: The recommended purchases are consistent with the Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478).
Commission/Committee Action: None
Rationale for Recommendation: After reviewing the available purchase options, the Fleet Management Division has determined that the Sourcewell cooperative purchase agreement with PB Loader Retail Sales represents the most advantageous purchasing strategy. The contract was competitively bid nationally, and Sourcewell receives greater discounts from the manufacturer due to a higher purchase volume than the City would receive if issuing its own bid.
In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement method increases pricing competitiveness and lowers operating costs through volume buying. When comparing the administrative costs of procurement, staff considers product research, source selection, specifications, advertising, staff reports, awarding, protest, and administration of the contract.
The City has used both regional and national cooperative purchase agreements to complement its own contracting initiatives. Cooperative purchasing enables City departments to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing also leverages internal and external resources to maximize cost savings opportunities for the City.
This action does not obligate the City to purchase all applicable parts and services through this
File ID: 2023-00300 5/9/2023 Consent Item 5.
cooperative contract. If other local purchasing options become available that support City Council objectives, the City may elect to pursue those options.
Fleet Management recommends this supplemental agreement to be used to purchase these eight vehicles.
Financial Considerations: The recommended purchases include actions that will affect two separate fiscal years. Two dump trucks will be purchased, in an amount not to exceed $396,919 and will be made from the Department of Public Works Fiscal Year (FY) 2021/2022 operating budget (Fleet Fund, Fund 6501) and will be charged to the Department of Public Works Gas Tax Fleet Project (I06152100, Fund 2002). Five dump trucks and an asphalt patch truck will be purchased in an amount not to exceed $1,275,232 and will be made from the Department of Public Works Fiscal Year (FY) 2022/2023 operating budget (Fleet Fund, Fund 6501) and will be charged to the Department of Public Works Gas Tax Fleet Project (I60152100, fund 2002) for a total not-to-exceed amount of $1,672,151. Sufficient funding exists in the Department of Public Works FY2021/22 and FY2022/2023 operating budgets and the Public Works Fleet Project (I06152100) to support the recommended purchases.
An increase to the Department of Public Works operating and revenue expenditure budgets in the amount of $406,125 is necessary as there have been several price increases on heavy-duty trucks over the last several years. A transfer in the amount of $406,125 from the Gas Tax Fund Balance (Fund 2002) to the Public Works Gas Tax Fleet Project (I06152100) is requested to cover the cost of these units. Upon completion of the recommended budget adjustments, sufficient funding will be available in the accounts to make the purchase.
Local Business Enterprise (LBE): PB Loader is not an LBE. The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.
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CONTRACTROUTING SHEETContract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.Supplement/Addendum #: General Information (Required)Original Contract # (supplements only): Assessor’s Parcel Number(s): Contract Effective Date: $ Amount (Not to Exceed):$ Contract Expiration Date (if applicable):Adjusted $ Amount (+/-): Other Party: PB Loader Project TitleReplacement Dump Trucks and Replacement Asphalt Patch TruckProject #:City Council Approval:YESBid/RFQ/RFP #: if YES, Council File ID#:Contract Processing ContactsDepartment:Contract Coordinator: Song Moua Department Review and RoutingProject Manager: Bobbie Small Email:[email protected]:Supervisor:Division Manager:Other:(Signature) (Date)(Signature) (Date)(Signature)(Date)(Signature)(Date)Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.)Recording RequestedOther Party Signature Required------------------FOR CLERK & IT DEPARTMENTS ONLY – DO NOT WRITE BELOW THIS LINE------------------CC Rev. 12.19.2018 Public Works
SUPPLEMENTALCONTRACT
(Rev. 11-1-19)
AMENDMENT TO SCOPE AND INCREASE IN MAXIMUM NOT-TO-EXCEED AMOUNT Project Title and Job Number: Replacement Dump Trucks and Replacement Asphalt Patch Truck Date: 4/6/2023Purchase Order #: Supplemental Contract No.: 01 The City of Sacramento ("City") and P B L o a d e r C o r p .("Contractor"), as parties to that certain Replacement Dump Trucks Agreement designated as Contract Number 2 0 2 3 - 0 0 5 8 , including any and all prior supplemental contracts modifying the contract (the contract and all supplemental contracts are hereafter collectively referred to as the "Contract"), hereby supplement and modify the Contract as follows: 1. The Scope of Services specified in Exhibit A of the Contract is amended as follows: Adding seven (7) replacement Dump Trucks and one (1) one Asphalt Patch Truck to increase the total quantity to ten (10) total Dump Trucks and one (1) Asphalt Patch Truck. 2. The maximum not-to-exceed amount that is specified in E x h i b i t B of the Contract for payment of Contractor's fees and expenses, is Increased by $1,672,151, and the Contract’s maximum not-to-exceed amount is amended as follows:Agreement's original not-to-exceed amount: Net change by previous supplemental contracts: Not-to-exceed amount prior to this supplemental contract: Increased by this supplemental contract: New not-to exceed amount including all supplemental contracts: $ 488,242.00 $ 0.00 $ 488,242.00 $ 1,672,151.00 $ 2,160,393.00 3. Contractor agrees that the amount of increase or decrease in the not-to-exceed amount specified in section 2, above, shall fully compensate Contractor under the Contract. 4. Contractor warrants and represents that the person or persons executing this supplemental contract on behalf of Contractor has or have been duly authorized by Contractor to sign this supplemental contract and bind Contractor to the terms hereof. 5. Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions required under the Contract, as supplemented and modified by this supplemental contract. [SIGNATURES ON FOLLOWING PAGE]
SUPPLEMENTALCONTRACT
(Rev. 11-1-19)
Approval Recommended By: Approved As To Form By: Project Manager City Attorney Approved By: Attest: Contractor City Clerk Approved By: Ryan MooreCity of Sacramento RESOLUTION NO. 2023-
Adopted by the Sacramento City Council
May 9, 2023
CONTRACT SUPPLEMENT NO. 1: REPLACEMENT DUMP TRUCKS AND
REPLACEMENT ASPHALT PATCH TRUCK
BACKG
ROUND
A. T
he Department of Public Works, Fleet Management Division, has a customer requirement to purchase seven replacement dump trucks and one replacement asphalt patch truck.
B. The recommended purchases, in an amount not to exceed $1,672,151, will be made from the Department of Public Works Fiscal Year 2022/23 operating budget (Fleet Fund, Fund 6501) and charged to the Public Works Gas Tax Fleet Project (I06152100, Fund 2002).
C. An increase to the Department of Public Works operating and revenue expenditure budgets in the amount of $406,125 is necessary as there have been several price increases on heavy-duty trucks over the last several years. A transfer in the amount of $406,125 from the Gas Tax Fund Balance (Fund 2002) to the Public Works Gas Tax Fleet Project (I06152100) is requested to cover the cost of these units. Upon completion of the recommended budget adjustments, sufficient funding will be available in the accounts to make the purchase.
D. In accordance with City Code Section 3.56.240, the City Manager, where advantageous to the City, may, by cooperative purchase agreements approved by the City Council, purchase supplies or nonprofessional services through legal contracts of other governmental jurisdictions or public agencies without separate competitive bidding by the City.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
S
ection 1
The City Manager or the City Manager’s designee is authorized to increase the expenditure and revenue budgets in the Department of Public Works 2022/23 operating budgets (Fleet Fund, Fund 6501) in the amount of $406,125.
Section 2
The City Manager or the City Manager’s designee is authorized to transfer $406,125 from the Gas Tax Fund Balance (Fund 2002) to the Public Works Gas Tax Fleet Project (I06152100).
Section 3
The use of the Sourcewell cooperative purchase contract with PB Loader (Contract 080521-PBL) for the purchase of seven replacement dump trucks and one replacement asphalt patch truck for an amount not to exceed $1,672,151 is hereby approved.
Section 4
The City Manager or the City Manager’s designee is authorized to execute the purchase with PB Loader using the cooperative purchase contract between Sourcewell and PB Loader (Contract 080521-PBL) for the purchase of seven replacement dump trucks and one replacement asphalt patch truck in an amount not to exceed $1,672,151.