TITLE
Recommendation to adopt resolution authorizing City Manager or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with Arizona Machinery, Inc., dba Stotz Equipment, a local distributor of John Deere Construction Retail Sales, of Moline, IL, for the purchase of two John Deere tractors, with related equipment and accessories, on the same terms and conditions afforded to Sourcewell, in a total amount not to exceed $536,579 inclusive of taxes and fees. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Arizona Machinery, Inc., dba Stotz Equipment, for the purchase of two John Deere tractors. The proposed units will be used by the Department of Parks, Recreation, and Marine (PRM), Beach Maintenance Division (Beach Maintenance). These tractors provide critical support for the maintenance and support of the City of Long Beach’s (City) beaches, especially during storm season, when large amounts of debris and sand need to be moved. These units are replacing two tractors for Beach Maintenance in the approved Fiscal Years (FY) 2021 and 2022 replacement plan, respectively. Sufficient funds have been collected for the replacement of this equipment. The current units are two years past their useful life and are becoming increasingly more expensive to maintain. Delay in replacement would likely result in increased downtime due to the corrosive nature of sand and saltwater conditions. Fully operational beach equipment is critical in protecting property and keeping the City’s beaches safe.
The Fleet Services Bureau of the Department of Financial Management researched procurement options for heavy construction equipment and discovered other agencies had completed an open, fair, transparent, and competitive procurement process. The City reviewed the cooperative agreement options and determined that the contract between Sourcewell and John Deere Construction Retail Sales, through their local distributor, Arizona Machinery, Inc., dba Stotz Equipment, provided the best value to the City. John Deere was selected based on the best value to the City.
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. This alternative procurement method can save time and reduce costs through economies of scale by purchasing under existing contracts from other government agencies on a voluntary and selective basis, when authorized by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Anita Lakhani on March 2, 2023, Purchasing Agent Michelle Wilson on February 17, 2023, and by Revenue Management Officer Geraldine Alejo on February 27, 2023.
SUSTAINABILITY
These new tractors are compliant with the State of California Air Quality Management District (AQMD). The engines are Tier 4/Final Stage which utilize after treatment devices to reduce particulate emissions and comply with State guidelines.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on March 21, 2023, to ensure that the contract is in place expeditiously.
FISCAL IMPACT
The total amount of the contract will not exceed $536,579, inclusive of taxes and fees. This purchase is budgeted in the Fleet Services Fund Group in the Financial Management Department. Annual maintenance, fuel, and replacement costs for each unit are estimated at $83,682 and will be billed to the Tidelands Operating Fund Group in the Department of Parks, Recreation, and Marine through the Fleet Services Memorandum of Understanding (MOU) process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER