Agenda Item Wording:
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Purchase of Peterbilt 548 Dump Truck and Transfer of Funds - Authorize the City Manager to award a purchase order to E.M. Tharp of Porterville, CA for the purchase of a Peterbilt 548 Dump Truck through the Sourcewell Cooperative contract in the amount of $234,570.
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Deadline for Action: 7/15/2024
Submitting Department: Public Works
Contact Name and Phone Number: Danny Galindo, Public Works Manager, danny.galindo@visalia.city, 713-4186; Nick Bartsch, Public Works Director, nick.bartsch@visalia.city, 713-4052
Department Recommendation:
Staff recommends that the City Council authorize the City Manager to award a purchase order to E.M. Tharp Inc. of Porterville, CA for the purchase and delivery of a Peterbilt 548 dump truck in the amount of $234,570.
Background Discussion:
In accordance with the replacement schedule set by the City’s Capital Improvement Program, the Streets Division within the Public Works Department is seeking the authorization to replace a 2008 Kenworth transfer truck (Unit 314930) that was included in the FY20/21 Budget. This truck was budgeted along with another previously replaced truck (unit #314925) for a total of $444,800.00. The remaining budget in this Capital Improvement Project (CIP) is $230,571.40. In review of the Street Maintenance Division’s vehicle and equipment fleet, with the desire and intent to “right-size” vehicles as they are replaced, it has been determined that a more versatile vehicle for the intended application is a standard dump truck, rather than the existing transfer truck and trailer. Peterbilt has a 548 chassis available and has provided a Sourcewell quote with an appropriate body/bed to meet the needs and application of the Streets Division. Currently, city-wide, the City has 63 Peterbilt vehicles in its fleet. By using the same truck and body manufacturers available through a local dealer, the City can minimize its maintenance and repair costs.
Sourcewell Cooperative Purchasing helps the City save time and money by purchasing from ready-to-use, competitively solicited contracts. Cooperative Purchasing is “Procurement conducted by, or on behalf of, one or more Public Procurement Units,” as defined by the American Bar Association Model Procurement Code for State and Local Governments. Sourcewell streamlines the purchasing process by developing Requests for Purchase for national competitive solicitations that meet or exceed local requirements. Because E.M. Tharp is the Peterbilt dealer in Tulare County, and Peterbilt Trucks are already competitively bid by Sourcewell, the City is able to utilize that contract to obtain the Sourcewell price.
Fiscal Impact:
With the remaining budget of $230,571.40 in the CIP, funding to cover the additional cost has already been transferred from the cost savings from another capital project. Currently, the available budget in VH0075 to replace vehicle 314930 is $234,571.40 within the Gas Tax Fund (111).
Prior Council Action: N/A
Other: N/A
Alternatives: Choose not to authorize the use of Sourcewell’s national cooperative agreement with E.M. Tharp, Inc. and independently bid the purchase of this vehicle via the City’s formal Request for Bids (RFB) process through the City’s Purchasing Department. This is not recommended as there is currently a vehicle available, and procurement through an alternative method will likely result in a significant delay. Because the Sourcewell price has already been competitively bid, it is unlikely that independently bidding this sole vehicle would ultimately result in lower pricing.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to award a purchase order to E.M. Tharp Inc. of Porterville, CA for the purchase and delivery of a Peterbilt 548 dump truck in the amount of $234,570.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Sourcewell Quote, E.M. Tharpe Quote, Scelzi Quote, Dump Truck Replacement Memo