AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH TITAN MACHINERY, INC., FOR COOPERATIVE PURCHASE OF ONE COMPACT WHEEL LOADER
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into a Linking Agreement with Titan Machinery, Inc., (Titan) for the cooperative purchase of one compact wheel loader in an amount not to exceed $95,728.49, contingent upon Council budget approval.
Background
The Right of Way Division in Public Works is responsible for landscape maintenance in the right of way and on undeveloped city-owned property. The division’s current wheel loader is over 17 years old, well beyond the operational life expectancy of 11 years.
Titan was awarded a bid for Earth Moving and Construction Equipment by the Houston-Galveston Area Council of Governments (H-GAC). Staff is requesting to utilize the H-GAC government to government Cooperative Purchasing Program, of which Glendale is a member. Contract No. EM06-15 was awarded by H-GAC on June 1, 2015 and expires on May 31, 2017.
Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.
Analysis
Replacement of the existing wheel loader is expected to reduce maintenance cost and downtime for the Right of Way division. When the truck is not operational, staff is forced to re-direct their operations, and productivity is lessened.
Previous Related Council Action
On February 23, 2016, Council authorized entering into Amendment No. 1 to the Linking Agreement with Titan Machinery, Inc., Contract No. C-10265, for the cooperative purchase of heavy duty truck and equipment repair, in an amount not to exceed $400,000.
On December 8, 2015, Council authorized entering into a Linking Agreement with Titan Machinery, Contract C-10524, for the cooperative purchase of a wheel loader for bulk trash collection in an amount not to exceed $88,813.12. This authority has been expended.
On February 23, 2016, Council authorized entering into a Linking Agreement with Titan Machinery, Inc., Contract No. C-10265, for the cooperative purchase of heavy duty truck and equipment repair, in an amount not to exceed $225,000.
Community Benefit/Public Involvement
Well maintained public right of way aids in creating civic and community pride. If the efforts to maintain the appearance of the landscaping are diminished, the high standards that Glendale citizens have come to expect will be lessened, which could result in sight visibility issues, impede predestination traffic, and contribute to City liability. Completing regularly scheduled tree trimming and landscape maintenance to the city’s roadways upholds a positive public image to residents, businesses, and visitors.
Cooperative purchasing typically produces the lowest possible volume prices and allows for the most effective use of available funding. The bids are publicly advertised and all Arizona firms have an opportunity to participate.
Budget and Financial Impacts
Funds for this purchase are available in FY 2016-17 Public Works Department Capital Improvement Plan budget. Expenditures with Titan Machinery, Inc. (Titan), are not to exceed $95,728.49, contingent upon Council budget approval.
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Cost |
Fund-Department-Account |
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$95,728.49 |
2000-68917-551400, Pavement Management - HURF |
Capital Expense? Yes
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?