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TO:

Honorable Mayor and Members of the Common Council

FROM:

Jon Urben, General Services Manager

DATE:

October 22, 2024

SUBJECT:

Res 24-555 Approve CIP Budget Amendment and Approve Cooperative Purchases of Step Van from LDV Custom Specialty Vehicles for Water Distribution ($255,692.00)

BACKGROUND

The Common Council allocated $165,000.00 in the 2022 CIP to purchase a step van for the Water Division. This vehicle will be used on a daily basis as the service truck for dig crews and will house all the tools, parts, and equipment needed for any water distribution system repairs. This memo seeks Council approval of the purchase of a new step van pursuant to the cooperative purchase exception to our purchasing ordinance.

ANALYSIS

Purchasing confirmed LDV Custom Specialty Vehicles holds a GSA cooperative contract (#47QMCA21D00F) for this type of vehicle. By using the cooperative contracts for these vehicles, the city will save a total of $9,750.00 (3.7%) off list price. Purchasing has confirmed this contract qualifies as cooperative purchasing exception to our purchasing ordinance.

FISCAL IMPACT

The total fiscal impact of purchasing this vehicle via the GSA cooperative contract is $255,692.00. A total of $165,000.00 was allocated for this vehicle in the 2022 CIP. The overage ($90,692.00) is a result of the lag that occurred between the budgeting in 2022 and this purchase, which is taking place in the fall of 2024. The budget shortfall will be addressed through budget transfers from the following accounts/amounts: A/N#: 03221810 7210 66030 (CNG TNDM-AXL DMP TK W/ STL DMP- $70,521.72), A/N#: 03221810 7210 66031 (WD - VEHICLES (ANNUAL- $9,167.00), A/N#: 03221810 7210 66013 (3/4-TN CNG PICK UP / VAN- $11,003.28) to A/N#: 03221810 7210 66112 (WATER STEP VAN)

RECOMMENDATION

Section 12-15 of the Municipal Code provides that subject to approval of the City Manager, cooperative purchases pursuant to a contract with any other local, state or federal governmental unit or agency may be made without following a competitive bidding or quotation process. In accordance with Section 12-15 of the Municipal Code and with approval by the City Manager, Purchasing recommends the Common Council approve the budget amendment as noted above and approve the step van cooperative purchase from LDV Custom Specialty Vehicles, 180 Industrial Drive, Burlington, WI 53105, for $255,692.00. If there are any questions about this purchase, please contact me or Public Works Director James Rabe.

Attachments

Res 24-555