Agenda Item #11.5
For Council Meeting of: January 11, 2022
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: ZAC BRAND, FLEET SERVICES SUPERINTENDENT, TRANSPORTATION AND PUBLIC WORKS
BRANDALYN TRAMEL, PURCHASING AGENT, FINANCE DEPARTMENT
AUTHOR JENNIFER MYLES, SENIOR BUYER, FINANCE
SUBJECT: APPROVAL OF A PURCHASE ORDER TO NIXON-ELGI EQUIPMENT COMPANY FOR THE PURCHASE OF ONE LEEBOY 8500D ASPHALT PAVING MACHINE UNDER SOURCEWELL COOPERATIVE AGREEMENT NUMBER 052417-VTL
AGENDA ACTION: RESOLUTION
RECOMMENDATION
It is recommended by the Transportation and Public Works and Finance Departments that the Council, by resolution, approve a purchase order with Nixon-Egli Equipment Company, Tracy, CA, for the purchase of one Leeboy 8500D Asphalt Paving Machine to replace existing equipment used in the Transportation and Public Works Street Surface Repair Division through Sourcewell Cooperative Agreement Number 052417-VTL for a total amount not to exceed $179,804.44.
EXECUTIVE SUMMARY
Purchasing has a purchase requisition from the Transportation and Public Work (TPW) Department for the purchase one Leeboy 8500D Asphalt Paving Machine under Sourcewell Cooperative Agreement number 052417-ALT. This vehicle will be used by the Transportation and Public Work Street Surface Repair crew.
BACKGROUND
Under the City’s guidelines for replacement of fleet vehicles, the Transportation and Public Works Department (TPW) Fleet Maintenance Division selects a vehicle for replacement when it has reached the end of its cost-effective life cycle. These vehicles have met the replacement criteria using a 15 point replacement program, an industry standard to predict when best to sell a vehicle. Repair costs, age, and mileage are considered in the point calculation performed by our Faster Fleet software system. The current Fleet asset #36811 is a 2008 Leeboy L1000T model and has surpassed its useful life and is scheduled for replacement.
PRIOR CITY COUNCIL REVIEW
Not applicable
ANALYSIS
The price schedule through the Sourcewell Cooperative Contract 052417-VTL lists a 10% discount off List price. Nixon-Egli is the authorized distributor for this equipment.
Santa Rosa City Code Section 3-08.160 allows for cooperative purchases when advantageous to the City. Based on the pricing the City obtains under the Sourcewell solicitations and the specialized nature of the Equipment for purchase, Transportation and Public Works and Purchasing staff consider it advantageous to the city to use the cooperative purchase. Upon approval by Council, a purchase order will be issued using the city’s standard Purchase Order Terms and Conditionas for the equipment. The Purchase Order will reference the Sourcewell Contract and Quote provided by Nixon-Egli Equipment Company as identified herein. The total cost includes the 10% Sourcewell Discount, non-standard options, training and startup, tax, and freight charges.
Sourcewell, formerly National Joint Powers Alliance, was created by state law as a service cooperative to provide programs and services to members in education and government. Sourcewell was established with the statutory purpose to assist members in meeting specific needs which are more efficiently delivered cooperatively than by an entity individually. Sourcewell serves over 50,000 member agencies nationally. All contracts are subject to periodic business reviews throughout the term of the contract to ensure compliance.
Sourcewell is authorized to establish competitively awarded cooperative purchasing contracts on behalf of itself and its member agencies. Sourcewell follows the competitive contracting law process to solicit, evaluate and award cooperative purchasing contracts for goods and services. Sourcewell exclusive contracts are offered to its members with one nationally leveraged volume purchasing discounts that agencies may not obtained through a single competitive process. Agency members obtain volume discount pricing, and additional cost savings by eliminating the need for a competitive process.
Upon approval by Council, a Purchase Order will be issued for the equipment and amount as identified above. The Purchase Order will reference the Sourcewell Contract, City Purchase Order Terms and Conditions, and Quote provided by Nixon-Egli Equipment Company.
FISCAL IMPACT
Funds for this operational expense have been allocated in the FY 2021/22 budget under the Transportation and Public Works Department - E & R Replacement - Key 300106-5584. Approval of this action does not have a fiscal impact on the General Fund.
ENVIRONMENTAL IMPACT
The Council finds that the proposed action is exempt from the provisions of the California Environmental Quality Act (CEQA) under section 15061(b)(3) and 15378 in that there is no possibility that the implementation of this action may have significant effects on the environment, and that no further environmental review is required.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable
NOTIFICATION
Not applicable
ATTACHMENTS
Attachment 1 - Nixon-Egli Equipment Company Quote
Resolution
CONTACT
Zac Brand, [email protected] 707-543-3717
Brandalyn Tramel, [email protected] 707-543-3706
Jennifer Myles, [email protected] 707-543-3702
APPROVAL AND ISSUANCE OF A PURCHASE ORDER TO NIXON-ELGI EQUIPMENT COMPANY FOR THE PURCHASE OF ONE LEEBOY 8500D ASPHALT PAVING MACHINE UNDER THE SOURCEWELLCOOPERATIVE AGREEMENT NUMBER 052417-VTL PAGE 3 OF 3