REPORT TO COUNCIL
SUBJECT
Title
Action on a Purchase Order with Municipal Maintenance Equipment, Inc. for the Purchase of a Street Sweeper for the Department of Public Works
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Department of Public Works (DPW) maintains approximately 760 fleet assets citywide with an original acquisition value of approximately $45,000,000. In addition, DPW is responsible for purchasing fleet replacements and additions that have been approved by the City Council to support mission-critical operations performed by various City departments. DPW procures vehicles and equipment through either cooperative purchase agreements established by another public agency (pursuant to Santa Clara City Code Section 2.105.270) or by conducting its own competitive solicitation utilizing vehicle and equipment specifications developed with the relevant City departments (pursuant to Santa Clara City Code Section 2.105.140).
Section 2.105.300(a) of the Santa Clara City Code authorizes the City Manager to execute purchase orders and agreements on behalf of the City in amounts up to and including $250,000. Purchases of vehicles and equipment from a single vendor over $250,000 require approval by the City Council.
DISCUSSION
Funds to purchase new and replacement fleet assets are appropriated in the FY 2024/25 Operating Budget. DPW has confirmed the need to acquire a new street sweeper to replace an older unit. DPW has determined that a public agency purchase pursuant to Santa Clara City Code 2.105.270 will result in the best value for the City. A street sweeper is available for purchase through a purchase order with Municipal Maintenance Equipment, Inc., procured through a Sourcewell cooperative purchase agreement. Because the purchase exceeds the City Manager's signature threshold of $250,000, City Council approval is required to secure this purchase.
• Municipal Maintenance Equipment, Inc: estimated purchase price of $460,000 - one street sweeper for the Department of Public Works
The availability of vehicles and equipment has declined significantly over the last few years and purchase prices have significantly outpaced previous inflation projections. It is important to secure orders as early as possible to avoid potential price increases and ensure availability. The pricing provided in the estimate is not fixed until purchase orders are issued. In order to successfully complete the purchase order without additional approval, DPW is requesting authorization of a 5 percent contingency in the amount of $23,000, in addition to the estimated purchase amount of $460,000, for a not-to-exceed total of $483,000. This total amount includes all applicable taxes and fees.
Approval of the recommendation will enable DPW to avoid any potential delays in procuring the vehicle. DPW will coordinate with the Finance Department to ensure the vehicle purchase is consistent with the City’s established purchasing policies.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(2) because the purchase of vehicles and equipment is not considered a project.
FISCAL IMPACT
The total not-to-exceed cost to purchase the street sweeper is estimated to be $483,000 ($460,000 base cost plus a $23,000 contingency). The funding for the purchase of this vehicle has already been approved in the FY 2024/25 Operating Budget Vehicle Replacement Fund.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Approve and authorize the City Manager to execute a purchase order for a total, not-to-exceed the amount, of $483,000 with Municipal Maintenance Equipment, Inc. for the purchase of a street sweeper for the Department of Public Works, in a final form approved by the City Attorney.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan D. Grogan, City Manager