Report to Mayor and City Council
Tuesday, December 06, 2022
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF THE PURCHASE OF THREE NEW 2023 JOHN DEERE GATOR TS, ONE NEW 2023 JOHN DEERE GATOR TE, AND FOUR OPEN MARKET CANOPIES FOR TS GATER, FROM STOTZ EQUIPMENT AND CONSIDER AWARDING PURCHASE ORDER TO COASTLINE EQUIPMENT COMPANY, LONG BEACH, CA, FOR THE PURCHASES OF ONE NEW 2023 JOHN DEERE 26G COMPACT EXCAVATOR FOR THE PUBLIC WORKS LANDSCAPE, BUILDING, AND MAINTENANCE DIVISION (CITY COUNCIL)
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I. SUMMARY
Public Works is requesting City Council approval for the purchase of three new 2023 John Deere Gator TS, one new 2023 John Deere Gator TE, and four Open Market Canopies for TS Gator, through a purchase order to Stotz Equipment, an authorized Deere and Company dealer through Sourcewell Contract #031121-DAC dated 04/30/2021 for a price not to exceed $51,120.95.
These pieces of equipment have been identified and prioritized as critically necessary for the Public Works maintenance crews to continue to provide the best service and to do so safely and efficiently. Equipment has been prioritized based on maintenance costs, risk of current equipment failure, and current shortages in equipment that prevents staff from operating efficiently and effectively.
Public Works is also requesting City Council approval for the purchase of one new 2023 John Deere 26G compact excavator through a purchase order to Coastline Equipment Company, an authorized dealer for John Deere through Sourcewell Contract #032119-JDC dated 05/13/2019 for a price not to exceed $49,916.50.
This piece of equipment has been identified and prioritized as critically necessary for the Public Works maintenance crews to continue to provide the best service and to do so safely and efficiently. Equipment has been prioritized based on maintenance costs, risk of current equipment failure, and current shortages in equipment that prevents staff from operating efficiently and effectively.
Some of the equipment being replaced with newer equipment will be auctioned and will help replenish the Vehicles/Rolling Inventory Fund 638. The expected cost of the equipment is no more than $101,037.45.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. WAIVE the formal bidding procedures as defined by the Carson Municipal Code, Section 2610; and
2. AUTHORIZE the Purchasing Manager pursuant to Section 2611 (g) to utilize cooperative purchasing to procure three new 2023 John Deere Gator TS, one new 2023 John Deere Gator TE, and four new Open Market Canopies for TS Gator, through a purchase order to Stotz Equipment, an authorized Deere and Company dealer through Sourcewell Contract #031121-DAC dated 04/30/2021, for an amount not to exceed $51,120.95 (Exhibit 1); and
3. WAIVE the formal bidding process defined by the Carson Municipal Code, Section 2607, as allowed by Section 2605 (b) (1) (ii); and
4. AUTHORIZE the Purchasing Manager to utilize Cooperative Purchasing as allowed by Section 2611(g) for (Coastline Equipment Company) through Sourcewell Contract #032119-JDC dated 05/13/2019 for the purchase of one new 2023 John Deere 26G compact excavator for a total of $49,916.50 (Exhibit 2).
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III. ALTERNATIVES
1. DO NOT WAIVE the formal bid process.
2. DO NOT WAIVE the formal contracting process.
3. DO NOT AUTHORIZE the Purchasing Manager to utilize Cooperative Purchasing, as allowed by Section 2611 (g), and issue a purchase order.
4. DO NOT AUTHORIZE the Purchasing Manager to utilize Cooperative Purchasing, as allowed by Section 2605 (b)(1)(ii)
5. TAKE another action the City Council deems appropriate, and consistent with the requirements of the law.
1. IV. BACKGROUND
Section 2611(g) of the City’s Municipal Code (“CMC”) allows City, through its Purchasing Manager, to dispense with competitive bidding processes to purchase materials, supplies, equipment, or services by utilizing a cooperative purchasing program engaged in by any local, county, State, or Federal public entity or entities, even if the contracts and implementing agreements entered into by the participating entity or association under those cooperative purchasing programs were not entered into under a process that resulted in the contract being awarded to the lowest responsible and responsive bidder under CMC 2610(i); provided, that the selected bidder was selected in compliance with the competitive bidding or proposal process requirements of any participating entity or association within three years of City’s approval of the City contract entered into with the selected bidder via cooperative purchasing. The City Council has decided that the benefits to the City of utilizing cooperative purchasing outweigh any incremental higher price that may be paid by the City in certain instances as a result of not soliciting directly utilizing the lowest responsible and responsive bidder standard under CMC 2610(i).
Sourcewell is a cooperative purchasing agency established to allow participating municipal agencies to reduce the cost of procurement by leveraging the benefits of contract purchasing. Through solicitations, Sourcewell contracts bring considerable value and efficiencies to members through nationally leveraged contracted suppliers with access to the highest quality products and brands. Each solicitation and RFP contain language, which includes all qualified customers in all fifty states. Sourcewell contract purchasing solutions are reviewed by the Sourcewell Board of Directors and awarded on the members' behalf. The City of Carson (ID# 38521) is a member of Sourcewell. All purchases of the items listed below are proposed to be purchased through Sourcewell.
Stotz Equipment
The City of Carson is responsible for the maintenance of twelve parks, four mini-parks, and civic facilities. The equipment being requested are three new 2023 John Deere Gator TS, one new 2023 John Deere Gator TE, and four new Open Market Canopies for TS Gator, through a purchase order to Stotz Equipment, an authorized Deere and Company dealer through Sourcewell Contract #031121-DAC dated 04/30/2021 and will be used in the day-to-day maintenance of the facilities in addition to the preparation for City-sponsored events.
A quote for this equipment was prepared for the City on October 24, 2022, for $51,120.95. The City’s existing equipment fleet consists of several John Deere branded equipment, and John Deere equipment has proven to be reliable and cost-effective over its lifetime.
There are no John Deere distributors in Carson. Stotz Equipment, located in Montclair, California, is the closest John Deere distributor for these vehicles.
Finally, it should also be noted that Section 2605(b)(ii) of the CMC requires City to enter a contract for purchases of any personal property, including materials, supplies, and equipment, of $25,000 or more over a fiscal year, unless the City Manager (as Purchasing Manager) waives this requirement. The City Manager has either waived or plans to waive such contract requirements for each of the equipment purchases.
Coastline Equipment Company
The City of Carson solicited quotes for the purchase of a new 2023 John Deere 26G compact excavator and received four competitive quotes. Of the four competitive quotes received the quote from Coastline Equipment was the lowest in cost. The estimate for this equipment was prepared for the City on October 5, 2022. The price for (1) a new 2023 John Deere Gator 26G Compact Excavator is $49,916.50. The City’s existing equipment fleet consists of several John Deere branded equipment, John Deere equipment has proven to be reliable and cost-effective over its lifetime.
There are no John Deere distributors in Carson, Coastline Equipment Company in Long Beach CA is the closest John Deere distributor for this equipment.
V. FISCAL IMPACT
None. The funding requested for this Purchase Order for $51,120.95 is budgeted in the General Fund account no. 101-80-840-107-8004, and $49,916.50 in account no. 101-80-840-102-8004.
VI. EXHIBITS
1. Quotation/Equipment Specifications from Stotz Equipment (pgs. 5 - 10)
2. Quotation/Equipment Specifications from Coastline Equipment Company (pgs. 11 - 13)
Prepared by: Freddy Loza, Landscape & Building Maintenance Superintendent