REPORT TO COUNCIL
SUBJECT
Title
Action on Authorizing the City Manager to Issue Purchase Orders to Cresco Equipment Rentals for the Rental of Equipment, Products, and Related Services for a Total Amount Not-to-Exceed $620,000 Inclusive of Option Year, for Use and Funded by Silicon Valley Power
Report
BACKGROUND
The City of Santa Clara's Electric Utility, Silicon Valley Power (SVP), operates and maintains power generation plants and other infrastructures that support electric transmission, distribution, and generation throughout the City. To maintain and support SVP's equipment and facilities, various types of equipment are used, including forklifts, boom lifts, utility carts, telehandlers, and discharge hoses.
Since 2023, SVP utilized a cooperative agreement between Sourcewell and Caterpillar, Inc. (Caterpillar) for short-term equipment rentals. The local Caterpillar dealer, Cresco Equipment Rentals (Cresco), is located in Santa Clara.
Sourcewell is a government agency established by the State of Minnesota legislature to facilitate cooperative purchasing solutions for governmental, educational, and nonprofit agencies. Caterpillar was selected through a formal Request for Proposals (RFP) process facilitated by Sourcewell. The previous agreement, which was approved by the City Council under RTC #25-1264, expired on August 27, 2025. SVP now seeks to continue using Cresco under the new cooperative agreement, as described below.
DISCUSSION
The Purchasing Division Manager has determined that issuance of purchase orders to Cresco is authorized under Section 2.105.270(c) of the Santa Clara City Code (City Code), which states that the City may "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."
In 2024, Sourcewell conducted a formal RFP process and again selected Caterpillar for the rental o...
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