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AGENDA ITEM REVIEW FORM |
6.C.
Regular City Council Meeting
- Meeting Date:
- 05/25/2022
- Department Head:
- Eulogio Vera
- Submitted By:
- Jorge Perez, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding Council ratification of an emergency purchase of a new Solid Waste - Side loader truck. (Eulogio Vera, Director of Public Works)
SUMMARY:
The Public Works Department had an urgent requirement to immediately move forward with a purchase of a new Solid Waste - Side loader truck to maintain the residential trash collection service for the residents of the City of San Luis. This new truck is being procured through a State Contract with RWC International, LTD., which provided a quote for a new Dennis Eagle cabin and chassis with a Spartan 300 Full Ejected Side Loader for a total cost of $409,311.87. This purchase falls under the provisions of City Code 3.05.090 Cooperative Purchasing.
The Solid Waste Division was approved for $312,530.00 for the purchase of a new truck for fiscal year 2021-2022, which was ordered back in July 2021. Due to the supply-chain issues, this truck is not scheduled for delivery until December 2022. The department has been struggling with deficiencies in the current fleet of trucks and started exploring options to mitigate the problems and continue to provide the needed service for the residents of San Luis. RWC International in conjunction with Spartan Truck Company offered the City the option of the Dennis Eagle truck with the Spartan Side Loader system and is committed to fulfilling the purchase of this truck before the end of the ongoing fiscal year.
Consequently, on May 11, 2022, the Department pursued and obtained the concurrence of the Acting City Manager to proceed with the execution of a purchase order for RWC International, LTD under the provisions of City Code 3.05.060 for emergency purchase actions. Council ratification of the Acting City Manager’s emergency approval is now required on purchase order No. 2022-00003785.
The Public Works Department is asking Council for approval to use the original budgeted $312,530.00 for the purchase of a Solid Waste truck under the Capital Outlay – Equipment account 320-321-90000, in addition, to shifting budget authority in the amount of $96,781.87 from account 300-302-90015 Capital Outlay - CIP to the Solid Waste aforementioned account to fulfill this purchase.
The Solid Waste Division was approved for $312,530.00 for the purchase of a new truck for fiscal year 2021-2022, which was ordered back in July 2021. Due to the supply-chain issues, this truck is not scheduled for delivery until December 2022. The department has been struggling with deficiencies in the current fleet of trucks and started exploring options to mitigate the problems and continue to provide the needed service for the residents of San Luis. RWC International in conjunction with Spartan Truck Company offered the City the option of the Dennis Eagle truck with the Spartan Side Loader system and is committed to fulfilling the purchase of this truck before the end of the ongoing fiscal year.
Consequently, on May 11, 2022, the Department pursued and obtained the concurrence of the Acting City Manager to proceed with the execution of a purchase order for RWC International, LTD under the provisions of City Code 3.05.060 for emergency purchase actions. Council ratification of the Acting City Manager’s emergency approval is now required on purchase order No. 2022-00003785.
The Public Works Department is asking Council for approval to use the original budgeted $312,530.00 for the purchase of a Solid Waste truck under the Capital Outlay – Equipment account 320-321-90000, in addition, to shifting budget authority in the amount of $96,781.87 from account 300-302-90015 Capital Outlay - CIP to the Solid Waste aforementioned account to fulfill this purchase.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO RATIFY PURCHASE ORDER NO. 2022-00003785 IN THE AMOUNT OF $409,311.87 FOR THE PURCHASE OF A NEW SOLID WASTE-SIDE LOADER TRUCK FROM RWC INTERNATIONAL, LTD. AND AUTHORIZE THE TRANSFER OF BUDGET AUTHORITY AS STATED IN THE FISCAL STATEMENT OF THIS ITEM.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- CITY
- TOTAL:
- $409,311.87
- BUDGETED AMOUNT:
- $312,530.00
- AVAILABLE AMOUNT TO TRANSFER:
- YES
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Capital Outlay - Equipment / GL Account #320-321-90000 / $330,587
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
Capital Outlay - Equipment / GL Account #320-321-90000 / $759.13
This account has an encumbrance (Open PO) in the amount of $330,587.60 which pertains to the order of a truck through Rush Truck Centers. Due to the current supply-chain issues, this truck will not be delivered within the requested time frame (current fiscal year), thus the PO will be closed and funds will liberate for the use of the requested purchase through RWC International. LTD. Balance after the PO cancellation: $330,587.60
The department of Public Works/Solid Waste is requesting the council to approve the transfer of budget authority in the amount of $96,781.87 from GL Account #300-302-90015 to GL Account #320-321-90000. There is budget capacity in account 300-302-90015 due the delay in the completion of various water projects.
This account has an encumbrance (Open PO) in the amount of $330,587.60 which pertains to the order of a truck through Rush Truck Centers. Due to the current supply-chain issues, this truck will not be delivered within the requested time frame (current fiscal year), thus the PO will be closed and funds will liberate for the use of the requested purchase through RWC International. LTD. Balance after the PO cancellation: $330,587.60
The department of Public Works/Solid Waste is requesting the council to approve the transfer of budget authority in the amount of $96,781.87 from GL Account #300-302-90015 to GL Account #320-321-90000. There is budget capacity in account 300-302-90015 due the delay in the completion of various water projects.