Agenda Item #12.2
For Council Meeting of: May 24, 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
AUTHOR JENNIFER MYLES, SENIOR BUYER
FINANCE DEPARTMENT
SUBJECT: APPROVAL OF A PURCHASE ORDER FOR TWO CATERPILLAR DIESEL FORKLIFTS TO HOLT OF CALIFORNIA, SACRAMENTO, CA, TO REPLACE EXISTING ASSETS IN SANTA ROSA WATER DEPARTMENT UNDER THE SOURCEWELL COOPERATIVE AGREEMENT NUMBER 091520-MCF AGENDA ACTION: RESOLUTION
RECOMMENDATION
It is recommended by the Transportation and Public Works and Finance Departments that the Council, by resolution, approve issuance of a purchase order with Holt of California, Sacramento, California for a total amount not to exceed $113,084.30 for two (2) DPN30N5 Caterpillar Tier 4 Diesel Forklifts as replacement equipment for existing City assets used in the Santa Rosa Water Department, under the pricing offered through the Sourcewell Cooperative Agreement number 091520-MCF.
EXECUTIVE SUMMARY
Purchasing has received purchase requisition R159679 from the Transportation and Public Work (TPW) Department for the purchase of two DPN30N5 Caterpillar Tier 4 Diesel Forklifts utilizing pricing offered under Sourcewell Cooperative Agreement number 091520-MCF. City purchase order terms and conditions will be issued.
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 untilization are considered in the point calculation performed by our Faster Fleet software system. Both current City vehicles have surpassed their useful life and are scheduled for replacement.
The purchase of the two forklifts will replace City forklifts #32202 (2002 Caterpillar forklift) used by Water Department Laguna Treatment Plant Operations staff , and #32701 (1997 Caterpillar forkliftl) used by Water Department Laguna Warehouse staff.
PRIOR CITY COUNCIL REVIEW
Not applicable.
ANALYSIS
The price schedule through the Sourcewell Cooperative Contract 091520-MCF lists a 32% discount off List price for the specified equipment. Holt of California is the nearest Sourcewell authorized vendor awarded the contract. There is no local dealer as defined by the City’s Local Preference Policy.
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, individual purchase orders using the city’s standard Purchase Order documents will be issued to the vendor for equipment and amount as identified above. Purchase Orders will reference the Sourcewell Contract and Quotes provided by Municipal Maintenance Equipment. as identified herein. The total cost includes tax, and tire recycle fees, warranty, and delivery.
Sourcewell Cooperative purchasing is “Procurement conducted by, or on behalf of, one or more Public Procurement Units” as defined by the American Bar Association Model Procurement Code for State and Local Governments. 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 City Purchase Order Terms, Sourcewell Contract number and Quote provided by Holt of California.
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
This action is exempt from the provisions of the California Environmental Quality Act (CEQA) under CEQA Guidelines 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 no further environmental review is required.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable.
NOTIFICATION
Not applicable.
ATTACHMENTS
Resolution / Exhibit A - Vendor Quote
CONTACT
Zac Brand, [email protected] 707-543-3717
Brandalyn Tramel, [email protected] 707-543-3706
Jennifer Myles, [email protected] 707-543-3702
APPROVAL OF A PURCHASE ORDER FOR TWO CATERPILLAR DP30N5 TIER 4 DIESEL FORKLIFTS TO HOLT OF CALIFORNIA, SACRAMENTO, CA UNDER THE PRICING OFFERED UNDER THE SOURCEWELL COOPERATIVE AGREEMENT NUMBER 091520-MCF PAGE 3 OF 3