City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01046 5/27/2025 Item 1.
Cooperative Purchase Agreement: Purchase of Five Replacement Units for FY25 File ID: 2025-01046
Location: Citywide
Recommendation: Pass a Motion: 1) approving the use of the Sourcewell cooperative purchase agreement with Rush Truck Centers of Texas (Contract No. 032824-RTG) for the purchase of five replacement units in an amount not to exceed $795,058; and 2) authorizing the Interim City Manager or designee to take any necessary actions to complete the purchases specified above.
Contact: Stacey Chatman, 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-Contract
Description/Analysis
Issue Detail: The Fleet Management Division of the Department of Public Works has identified the need to procure two replacement Tool Emulsion trucks (replacing units 11623 and 11625) for Public Works - Pavement Maintenance; one Pipe Hunter truck (replacing unit 12730) for the Department of Utilities - Wastewater Collection; one Pres Tec Truck (replacing unit 11609) for the Department of Utilities - Water Distribution; and one Stake Bed Truck (replacing unit 11116) for the Department of Utilities - Logistics as part of the FY25 Fleet asset replacement process. These trucks will be utilized for essential services throughout the City of Sacramento such as asphalt distribution on City streets for maintenance and repair; cleaning and maintaining City drainage and water systems; and delivering goods needed to provide these services.
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 and which provides for the use of cooperative purchase agreements without competitive bidding. (Section
3.56.240).
File ID: 2025-01046 5/27/2025 Item 1.
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 align with the Fleet Sustainability Policy, updated and approved by City Council on December 12, 2017 (Resolution No. 2017-0478), as well as California Air Resource Board (CARB) regulations. Currently, there are no zero-emission models available that could serve as suitable replacements.
Commission/Committee Action: None.
Rationale for Recommendation: After evaluating all available purchasing options, the Fleet Management Division has determined that the Sourcewell cooperative purchase contract with Rush Truck Center of Texas offers the most advantageous solution. This contract, which was a nationally competitive bid, enables Sourcewell to secure greater manufacturer discounts due to high purchase volumes.
To optimize cost savings and staff efficiency, many government agencies participate in cooperative purchasing agreements. This approach promotes competitive pricing and reduces operational expenses through volume purchasing. When assessing the administrative costs of procurement, staff evaluates factors such as product research, source selection, specification development, advertising, staff reports, contract awarding, protest handling, and contract administration.
The City has effectively utilized both regional and national cooperative purchase contracts to complement its contracting efforts. Cooperative purchasing not only broadens the range of contracting opportunities available to City departments but also fosters resource sharing with other jurisdictions. By leveraging both internal and external resources, this approach enhances cost-saving opportunities for the City.
Financial Considerations: The recommended purchase, in a total amount not to exceed $795,058, will be made from the Department of Public Works Fiscal Year (FY) 2024/25 operating budget (Fleet Fund, Fund 6501) and shall be charged as follows: $206,717 for units 11623 and 11625 charged to Fleet FY25 Public Works Gas Tax Project I06152125, Fund 2002 $264,523 for unit 12730 charged to Fleet FY25 DOU Sewer Fund Project I06146025, Fund 6006 $323,818 for units 11609 and 11116 charged to Fleet FY25 DOU Water Fund Project I06145025, Fund 6005. Sufficient funding is available in the Department’s FY 2024/25 operating budget and the named Fleet Projects and corresponding funds to support the recommended purchases.
File ID: 2025-01046 5/27/2025 Item 1.
Local Business Enterprise (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.
CONTRACT #:CONTRACT NAME: 032824-RTG-Commercial Truck Sales, Parts, and ServiceAGREEMENT TERM:07/10/2024-07/09/2028 AUTHORIZED RENEWALS: DEPARTMENT: Public Works-Fleet Management CITY OF SACRAMENTO COOPERATIVE/PIGGYBACKING AGREEMENT Cooperative/Piggyback Agreement Approved by CAO 1-23-2025 The City of Sacramento ("City") and RUSH TRUCK CENTERS OF TEXAS ("Contractor"), hereby agree to this Cooperative/Piggybacking as of MAY 1, 2025. WHEREAS, the City wishes to purchase COMMERCIAL TRUCK SALES, PARTS, AND SERVICE, pursuant to the terms of this Agreement and Contract No. 032824-RTG, dated JULY 10, 2024 incorporated herein by this reference), with SOURCEWELL . NOW THEREFORE, Contractor and the City agree as follows: 1. The City agrees to purchase, pursuant to the terms of this Agreement and the Cooperative Contract, COMMERCIAL TRUCK SALES, PARTS, AND SERVICE. In no way shall payment from City to Contractor under this Agreement exceed $795,0578. 2. Scope of work. [City representative to check all that apply]: [___A. The goods and/or services shall be delivered to the City no later than . The terms of this Agreement and the Cooperative Contract shall control over any contrary terms included in Exhibit A; and/or [_X__] , including the date(s) of delivery, shall be as set forth in purchase order(s) issued by the City. The terms of this Agreement and the Cooperative Contract shall control over any contrary terms included in a purchase order. 3. The City shall have all the same pricing, terms, conditions, rights, and obligations as the Cooperative Purchasing Organization under the Cooperative Contract. 4. The term of this Agreement shall run through JULY 9, 2028 unless terminated earlier by the City. If the Cooperative Purchasing Organization renews or extends the Cooperative Contract by written amendment, this Agreement will automatically extend, not to go beyond (i) the term of the amended Cooperative Contract, or (ii) a total term of five years, whichever first occurs. Additionally, if the Cooperative Purchasing Organization renews or extends the Cooperative Contract by written amendment then the City has the option to extend the term of this Agreement, not to go beyond the term of the amended Cooperative Contract. City may terminate this Agreement upon notice to Contractor. 5. Notwithstanding any contrary term(s) in the Cooperative Contract, including any limitation of liability provision, Contractor shall defend, hold harmless and indemnify City, its officers and employees, and each and every one of them, from and against all actions, damages, costs, liabilities, claims, demands, losses, judgments, penalties, costs and expenses of every type and description, whether arising on or off the site of the work or services performed under this Agreement or the Cooperative Contract, including, any fees and injury or death, damage to personal, real or intellectual property, damage to the environment, contractual or other economic damages, or regulatory penalties, arising out of or in any way connected with performance of CONTRACT #:CONTRACT NAME: 032824-RTG-Commercial Truck Sales, Parts, and ServiceAGREEMENT TERM:07/10/2024-07/09/2028 AUTHORIZED RENEWALS: DEPARTMENT: Public Works-Fleet Management CITY OF SACRAMENTO COOPERATIVE/PIGGYBACKING AGREEMENT Cooperative/Piggyback Agreement Approved by CAO 1-23-2025 or failure to perform this Agreement or the Cooperative Contract by Contractor, any subcontractor (including lower-tier subcontractors) or agent of Contractor, their respective officers and employees, and anyone else for whose acts or omissions any of them may be liable, whether or not the Liabilities (i) are caused in part by a party indemnified hereunder, or (ii) are litigated, settled or reduced to judgment; provided that the foregoing indemnity does not apply to liability for any damages for death or bodily injury to persons, injury to property, or other loss, damage, or expense, to the extent arising from the active negligence or willful misconduct of, or defects in design furnished by, City, its agents, servants, or independent contractors who are directly responsible to City, except when such agents, servants, or independent contractors are under the supervision and control of Contractor or any subcontractor (including lower-tier subcontractors) or agent of Contractor. 6. Insurance Requirements. [To be completed by the City representative]. this Agreement or any extension thereof, satisfy the following insurance requirements which shall apply to Contractors performance under this Agreement [check one]: [_X_] the insurance limits and obligations contained in the Cooperative Contract. The City shall have all the same rights as the Cooperative Purchasing Organization under the Cooperative Contract and Contractor shall provide the City with certificates of insurance evidencing the insurance required upon request. [___] the insurance requirements contained in Exhibit B, notwithstanding any contrary insurance requirements contained in the Cooperative Contract. If neither line above in this section 6 is checked, the insurance limits and obligations contained in the Cooperative Contract shall apply, the City shall have all the same rights as the Cooperative Purchasing Organization, and Contractor shall provide the City with certificates of insurance evidencing the insurance required upon request. 7. Notwithstanding any contrary term(s) in the Cooperative Contract, this Agreement shall be governed, construed and enforced in accordance with the laws of the State of California, except that the rule of interpretation in California Civil Code section 1654 will not apply. Venue of any litigation arising out of this Agreement will lie exclusively in the state trial court or Federal District Court located in Sacramento County in the State of California, and the parties consent to jurisdiction over their persons and over the subject matter of any such litigation in such courts, and consent to service of process issued by such courts. 8. The Contractor shall be responsible for strict compliance with all applicable laws, regulations, court orders and other legal requirements applicable to the work to be accomplished under the Contract, including the California Occupational Safety and Health Act and all applicable safety orders issued by the Division of Occupational Safety and Health, Department of Industrial Relations, State of California, and all applicable requirements of Underwriters Laboratories and the Federal Communication Commission. 9. Contractor warrants and represents that the person or persons executing this Agreement on behalf of Contractor has or have been duly authorized by Contractor to sign this Agreement and bind Contractor to the terms hereof.
CONTRACT #:CONTRACT NAME: 032824-RTG-Commercial Truck Sales, Parts, and ServiceAGREEMENT TERM:07/10/2024-07/09/2028 AUTHORIZED RENEWALS: DEPARTMENT: Public Works-Fleet Management CITY OF SACRAMENTO COOPERATIVE/PIGGYBACKING AGREEMENT Cooperative/Piggyback Agreement Approved by CAO 1-23-2025
10. Except as specifically modified herein, all terms and conditions of the Cooperative Contract shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions of the Cooperative Contract as stipulated and modified by this Agreement. Where there is a conflict between the terms and conditions of the Cooperative Contract and this Agreement, this Agreement shall control.
SUPPLEMENTAL CONTRACT
(Rev. 11-1-19)
Approval Recommended By: Approved As To Form By: Project Manager City AttorneyApproved By: Attest:____________________________________Contractor City ClerkApproved By: ,City of Sacramento