City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01577 1/9/2024 Consent Item 16.
Contract Supplement No. 2: Replacement Dump Trucks [Published for 10-Day Review 12/27/2023]
File ID: 2023-01577
Location: Citywide
Recommendation: Pass a Motion: 1) authorizing the City Manager or City Manager’s designee to execute Supplement No. 2 to Contract No. 2023-0058 with PB Loader for the purchase of nine (9) Dump Trucks in an amount not to exceed $2,050,220, for a contact total not-to-exceed amount of $4,210,613; 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. 02
Additional Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division is requesting to purchase nine (9) replacement dump trucks for the Department of Public Works, In Source Concrete and Pavement Maintenance Sections. The trucks will be used to remove debris from maintenance projects around the city.
Policy Considerations: The recommendations in this report are in accordance with Sacramento City Code Chapter 3.56 and Sacramento City Code Section 4.040.020 and Council Rules of Procedure, Chapter 7, Section E.2.d, which requires additional posting time for labor agreements and agreements greater than $1 million. This item 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 December 27, 2023, in compliance with City Code.
File ID: 2023-01577 1/9/2024 Consent Item 16.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): 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 replacement dump trucks will replace existing dump trucks that have reached the end of their serviceable life and require higher maintenance costs to keep in service. The acquisition of these dump trucks aligns with the standard replacement schedule carried out by the Fleet Management Division.
After reviewing the available purchase options, the Fleet Management Division has determined that the Sourcewell cooperative purchase agreement with PB Loader 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: The recommended purchase, in an amount not to exceed $2,050,220, will be made from the Department of Public Works Fiscal Year (FY) 2023/2024 operating budget (Fleet Fund, Fund 6501) and will be charged to the Department of Public Works Gas Tax Fleet Project (I06152100, Fund 2002). Sufficient funding exists in the Department of Public Works
File ID: 2023-01577 1/9/2024 Consent Item 16.
FY2023/24 operating budget and the Gas Tax Fleet Project to support the recommended 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.