REPORT TO COUNCIL
SUBJECT
Title
Action on the Award of Purchase Orders with an Aggregate Total of $5,665,000 for Vehicles and Equipment for the Public Works, Fire, Police, Silicon Valley Power, Water & Sewer Utilities, and Parks & Recreation Departments, Funded by Amounts Previously Approved in the City’s Operating Budget for Fiscal Year 2024/25
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. DPW is also 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).
Under Section 2.105.300(a) of the Santa Clara City Code, the City Manager is authorized to execute purchase orders and agreements up to $250,000. Any purchases exceeding $250,000 from a single vendor require approval by the City Council. Funding for new and replacement fleet assets are appropriated in the FY 2024/25 Operating Budget. Each department has confirmed the need to acquire new assets to replace aged vehicles/equipment that require increasingly high maintenance costs or to fulfill new operating demands.
DISCUSSION
The recommendations in this report to use cooperative purchasing agreements are made pursuant to City Code Section 2.105.270(c), which states that the City may, without observing formal bidding requirements, “contract with a vendor under a contract awarded using preestablished cooperative purchasing agreements, when such agreement resulted from a competitive bid process that meets or exceeds the City’s competitive bid process, as determined by the Purchasing Division Manager.” To secure the order of the vehicles and equipment listed below, staff is requesting City Council approval to procure the following equipment through the cooperative purchasing agreements available through Sourcewell (a service cooperative created by the Minnesota legislature as a local unit of government) and the California Department of General Services, both of which have been determined by the Purchasing Division Manager to have resulted from a competitive bidding process that meets or exceeds the competitive bidding process of the City.
• Municipal Maintenance Equipment, Inc.: One street sweeper for the Department of Public Works, with an estimated purchase price of $480,000.
• Downtown Ford: 11 light/medium duty vehicles for the Fire, Police, Public Works, and Silicon Valley Power Departments, with an estimated aggregate purchase price of $685,000.
• Golden State Fire Apparatus: One tiller truck for the Fire Department, with an estimated purchase price of $2,130,000.
• Altec Industries, Inc./Global Rental Co.: One crane truck, one digger derrick truck, and two aerial bucket trucks for Silicon Valley Power, with an estimated aggregate purchase price of $1,800,000.
• Peterson Tractor: One backhoe loader for the Water & Sewer Utilities Department and one excavator for the Parks & Recreation Department, with an estimated aggregate purchase price of $300,000.
The combined total estimated value of these purchases is $5,395,000. In order to successfully complete the purchase order without additional approval, DPW is requesting authorization of a 5 percent contingency in the amount of $270,000, in addition to the estimated purchase amount of $5,395,000, for a not-to-exceed total of $5,665,000. This total amount includes all applicable taxes and fees.
Prior to purchasing the vehicles and equipment, DPW will collaborate with the user departments to determine if a zero-emission vehicle (ZEV) is commercially available and can satisfy department utilization needs. The pricing for 3 of the 11 light/medium duty vehicles is based on purchasing electric powered vehicles. DPW and Parks & Recreation are still evaluating the potential to purchase an electric powered excavator. The remainder of the vehicles and equipment described in this report will be powered by internal combustion engines.
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 estimates are not fixed until purchase orders are issued.
Approval of the recommendation will enable DPW to avoid any potential delays in procuring the vehicles. 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 amount to purchase one street sweeper, 11 light/medium duty vehicles, one tiller truck, one crane truck, one digger derrick truck, two aerial bucket trucks, one backhoe loader and one excavator is estimated to be $5,665,000 ($5,395,000 base cost plus a 5 percent contingency of $270,000). The funding for the purchase of these vehicles and equipment has been approved in the FY 2024/25 Adopted Operating Budget.
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 or designee to execute purchase orders for vehicles and equipment for the Public Works, Fire, Police, Silicon Valley Power, Water & Sewer Utilities, and Parks & Recreation Departments, through Sourcewell and the California Department of General Services cooperative purchasing agreements, with Municipal Maintenance Equipment, Inc., Downtown Ford, Golden State Fire Apparatus, Altec Industries, Inc., and Peterson Tractor, on the terms and in the amounts presented, in a total aggregate amount not-to-exceed $5,665,000 (inclusive of taxes, fees, and a 5% contingency), in final forms approved by the City Attorney.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan D. Grogan, City Manager