City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01420 11/14/2023 Consent Item 33.
Contract Supplement No. 1: Replacement Dump Trucks
2023-01420
Location: Citywide
Recommendation: Pass a Motion: 1) approving the use of the Sourcewell cooperative purchase agreement (Contract No. 060920) with Navistar, Inc. dba International Truck through local dealer Riverview International Trucks for the purchase of two replacement dump trucks in an amount not to exceed $483,233; and 2) authorizing the City Manager or the City Manager’s designee to execute the purchase specified above.
Contact: Bobbie Small, Program Specialist, (916) 808-6711, [email protected]; Alison Kerstetter, Fleet Manager, (916) 808-1163, [email protected], Department of Public Works
Presenter: None.
Attachments:
1 - Description/Analysis
2 - Supplemental Agreement No. 1
Description/Analysis
Issue Detail: Fleet Management Division within the Department of Public Works has been commissioned with acquiring two new dump trucks. One is intended for the Pavement Maintenance Division of the Department of Public Works, and the other will serve the Parks Maintenance Division of the Youth, Parks & Community Enrichment Department. These trucks will be utilized for the removal of debris from various maintenance projects throughout the city.
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.56, which requires City Council approval for contracts of $250,000 or more.
Economic Impacts: None
Environmental Considerations:
File ID: 2023-01420 11/14/2023 Consent Item 33.
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: The Sourcewell contract was previously used by Fleet Management for an amount not to exceed $338,392. Fleet Management is requesting to purchase two additional vehicles under this contract.
These replacement dump trucks are necessary due to the existing trucks having reached the end of their serviceable life, primarily because of high mileage and maintenance costs. The recommended acquisition of these dump trucks aligns with the standard replacement schedule carried out by the Fleet Management Division.
After reviewing all available purchase options, the Fleet Management Division has determined that the Sourcewell cooperative purchase agreement with Riverview International Trucks 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.
Financial Considerations: One dump truck will be purchased, in an amount not to exceed $270,074 from the Department of Public Works Fiscal Year (FY) 2023/24 operating budget (Fleet Fund, Fund 6501) and will be charged to the Department of Public Works Gas Tax Fleet Project (I06152100, Fund 2002). The second dump truck will be purchased in an amount not to exceed
File ID: 2023-01420 11/14/2023 Consent Item 33.
$213,159 from the Department of Public Works Fiscal Year (FY) 2023/24 operating budget (Fleet Fund, Fund 6501) and will be charged to the Youth, Parks & Community Enrichment Department Fleet Project (I06191100, Fund 2401) for a total not-to-exceed amount of $483,233.
Local Business Enterprise (LBE): Riverview International Trucks 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.