City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01124 6/25/2024 Consent Item 13.
Contract Supplement No. 1: Replacement Altec Hydraulic Dump Chip Body Truck File ID: 2024-01124
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or City Manager’s designee to execute Supplement No. 1 to Contract No. 2024-0707 with Altec Industries, Inc. for the purchase of one (1) hydraulic dump chip body truck in an amount not to exceed $103,204 for a revised total contract not-to-exceed amount of $304,392.
Contact: Bobbie Small, Program Specialist, [email protected], (916) 808-6711; Alison Kerstetter, Fleet Manager, [email protected], (916) 808-1163; Department of Public Works
Presenter: None.
Attachments:
1 - Description/Analysis
2 - Supplemental Agreement No. 1
Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division, has been commissioned to acquire a replacement hydraulic dump chip body truck for the, Urban Forest Services Division within the Public Works Department. This new truck will play a crucial role in the city's tree maintenance operations, specifically for the efficient removal of chippings and debris generated from tree trimming projects. Ensuring the Urban Forest Services Division has reliable equipment is essential for maintaining the health and aesthetics of the city's urban forest, as well as for the safety and cleanliness of public spaces.
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.56, which requires City Council approval of actions of $250,000 or more.
Economic Impacts: None.
File ID: 2024-01124 6/25/2024 Consent Item 13.
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: The Sourcewell contract was previously used by Fleet Management for an amount not to exceed $201,188. Fleet Management is requesting to purchase one additional truck under this agreement.
This replacement truck is necessary due to the existing truck having reached the end of its serviceable life, primarily because of high mileage and maintenance costs. The recommended acquisition of this truck 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 Altec Industries, Inc., 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 replacement hydraulic dump chip body truck will be purchased in an amount not to exceed $103,204 from the Department of Public Works Fiscal Year (FY) 2024/2025 operating budget (Fleet Fund, Fund 6501) and will be charged to the Department of Public Works
File ID: 2024-01124 6/25/2024 Consent Item 13.
Landscape and Lighting Project (I06152000, Fund 2232). Sufficient funding exists in the Department of Public Works Landscape and Lighting Project and will exist in the Department of Public Works Fiscal Year (FY) 2024/2025 operating budget upon approval of the City’s annual budget.
Due to the forecasted structural budget gap, the City Manager has directed City departments to minimize costs and for all new contracts to receive an additional level of scrutiny to ensure they are necessary for the operation of the City. This contract has been reviewed and approved by the City Manager’s Office to advance to Council for approval. Funding for the proposed contract beyond FY2024/25 is subject to Council approval.
Local Business Enterprise (LBE): Altec Industries, Inc. 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.