TITLE
Recommendation to adopt resolution authorizing City Manager to execute a contract with Deere & Company, of Cary, NC, for the purchase of a John Deere 7210R tractor with related equipment and accessories, on the same terms and conditions afforded to the National Joint Powers Alliance (NJPA), of Staples, MN, in an amount not to exceed $172,728, inclusive of taxes and fees. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Deere & Company to purchase a John Deere 7210R tractor for the Department of Parks, Recreation and Marine (PR). In July 2013, unit 14339 caught fire due to a malfunction of the diesel exhaust emission control device and was deemed a total loss by the Fleet Services Bureau. The insurance carrier, McLarens Young, has made a payment for the purchase of the replacement unit to the City in the amount of $58,455 and has agreed to reimburse the remaining funds to the Human Resources Department (HR), Risk Management Division, once the replacement unit has been ordered.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment, and labor with other governmental agencies by purchasing under their contracts on a voluntary and selective basis when authorized by a Resolution of the City Council.
The Fleet Services Bureau and Purchasing Division of the Department of Financial Management investigated procurement options, and compared agreements from three national purchasing cooperative groups: the National Joint Powers Alliance (NJPA), the National Purchasing Partners (NPP), and the Houston-Galveston Area Council (HGACBuy), all of whom had completed a competitive procurement process for tractors, related equipment and accessories, to obtain the best pricing. After a thorough evaluation, the National Joint Powers Alliance agreement with Deere & Company, of Cary, NC (not a DBE, MBE, WBE, SBE or Local), was determined to provide the best discounted price while allowing for timely acquisition and delivery from Stotz Equipment, of Montclair, CA, the authorized delivering dealer for Southern California.
This matter was reviewed by Deputy City Attorney Amy R. Webber on March 17, 2015 and by Budget Management Officer Victoria Bell on March 19, 2015.
SUSTAINABILITY
The new tractor is compliant with the State of California and local district air quality regulations.
TIMING CONSIDERATIONS
City Council action to adopt the attached Resolution and execute a contract concurrently is requested on April 7, 2015 to ensure that the contract is in place expeditiously.
FISCAL IMPACT
The total purchase amount will not exceed $172,728, inclusive of taxes and fees. Cost to purchase the replacement is budgeted in the Fleet Services Fund (IS 386) in the Financial Management Department (FM). Insurance reimbursement of $58,455 has been received and the remaining costs will be reimbursed by McLarens Young (insurer) once the replacement unit has been ordered. Reimbursement will be deposited in the Fleet Services Fund (IS 386) in the Financial Management Department (FM). There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH DEERE & COMPANY FOR THE PURCHASE OF ONE (1) JOHN DEERE 7210R TRACTOR, WITH RELATED EQUIPMENT AND ACCESSORIES, THROUGH THE NATIONAL JOINT POWERS ALLIANCE (NJPA)
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER