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AGENDA ITEM REVIEW FORM |
6.A.
Regular City Council Meeting
- Meeting Date:
- 12/12/2018
- Department Head:
- Eulogio Vera
- Submitted By:
- Manuel Rojas, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the purchase of a new Peterbilt/Scorpion Solid Waste Truck for the Solid Waste Division. (Manuel Rojas, Assistant Director of Public Works and Monica Castro, Director of Finance)
SUMMARY:
Staff recommends the purchase of a new Peterbilt Chassis and Scorpion Body unit for the Solid Waste Division. The purchase would assist to improve the customer service delivery to our community and to upgrade our Solid Waste fleet. We have previously purchased Scorpion body retrofits with success. Our staff is very comfortable operating and maintaining the units. Staff met with the maker of the Scorpion body, Dadee Manufacturing, to discuss minor issues which all have been corrected in their operations and development process. As recommended by the Finance Department, such purchase would be a 5-year loan purchase via 1st Bank Yuma. The city would pay 10%, 1st Bank Yuma loan will pay 90% of the total purchase and a 1% loan fee.
Under San Luis City Code-Purchasing Section 36.09, the city may make purchases without a formal bidding process whenever other government agencies have gone out to bid for the same item. The Houston-Galveston Area Council (HGAC) went out to bid on these items. However, HGAC did not bid out $21,059.30 worth of options on the available vehicle. The total HGAC contract plus the separate options would be:
$291,815.30
$274,268.62 is the cost after the vendor's discount,
$291,815.30
$274,268.62 is the cost after the vendor's discount,
$17,546.68 savings.
Staff is requesting City Council waive formal purchasing procedures as is allowed under San Luis City Code-Purchasing Section 36.01(H). HGAC did not bid out the options on the available vehicle so the city can't piggy-back completely on the bid HGAC contract price. The waiver saves the city the cost of going out to bid itself. Most importantly HGAC went out to bid, and the total cost of the vehicle would be more under that contract than with the discounted price staff received.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE PURCHASE OF A NEW PETERBILT CHASSIS AND SCORPION BODY THROUGH THE PROPOSED FINANCING IN THE AMOUNT OF $274,268.62 AND WAIVE FORMAL PURCHASE PROCEDURES FOR THE REASONS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- Enterprise Funds
- TOTAL:
- $274,268.62
- BUDGETED AMOUNT:
- $281,870.00
- AVAILABLE AMOUNT TO TRANSFER:
- $0.00
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Capital Outlay - Equipment 320-321-90000
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
A Fiscal Year 2019 approved purchase. Staff recommends the purchase of a new Solid Waste Truck, via a 5 year loan with 1st Bank Yuma. The City would pay, 10% and the loan will cover 90% of the total cost of unit.
Capital Outlay - Equipment 320-321-90000 $281,870.00
Capital Outlay - Equipment 320-321-90000 $281,870.00