COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Bill Young, Transportation and Maintenance Services Superintendent
SUBJECT:Title
Approve Cooperative Purchase Agreement and Cooperative Purchases of Heavy-Duty Fleet, Construction and Agricultural/Industrial Parts, Service and Accessories from Freightliner of Arizona, LLC, dba Velocity Truck Centers (Bill Young)
Body
FUNDING SOURCE:
Various Departments
PURPOSE:
Approve Cooperative Purchase Agreement (500473) utilizing the Maricopa County Contract Number 200209-C and cooperative purchases of heavy-duty fleet, construction and agricultural/industrial parts, service and accessories in accordance with City Code §§ 3.10.010.3(A)(1) and 3.10.030.1.
BACKGROUND:
The Lake Havasu City Public Works Department, Vehicle Maintenance Division, is requesting approval of annual expenditures exceeding $50,000 with Velocity Truck Centers through the Maricopa County Contract Number 200209-C for heavy duty fleet, construction, and agricultural/industrial parts, service, and accessories.
Velocity Truck Centers is the City’s primary vendor for Freightliner parts and occasional repairs. Staff anticipates exceeding the annual expenditure threshold of $50,000, which requires City Council approval.
A wide variety of OEM parts are purchased for both interior and mechanical repairs. Lake Havasu City’s dump trucks, vactor trucks, and fire trucks utilize these Freightliner parts.
The proposed Cooperative Purchase Agreement is for a term ending on September 30, 2024, and allows the purchase of heavy-duty fleet, construction, and agricultural/industrial parts, service, and accessories. Staff requests authorization to renew the Cooperative Purchase Agreement for an additional one-year term. Historically, the City exceeds approximately $65,000 for the purchase of the items listed above. City staff seeks approval to exceed annual expenditures of $50,000 for purchase of these items for the term and any renewals of the proposed Cooperative Purchase Agreement. These authorizations are for items routinely purchased by the City and any non-routine purchases exceeding $50,000 will be presented to City Council for separate consideration.
COMMUNITY IMPACT:
Using cooperative agreements results in savings to the community because retail prices are discounted based on large volume contract pricing through a nationwide cooperative solicitation.
FISCAL IMPACT:
Funds are allocated and available in the Fiscal Year 2023-24 budget in the various departments and divisions.
ATTACHMENTS:
N/A
SUGGESTED MOTION:Recommended Action
I move to approve and authorize the City Manager to execute the Cooperative Purchase Agreement for heavy duty fleet, construction and agricultural/industrial parts, service and accessories from Freightliner of Arizona, LLC, dba Velocity Truck Centers; approve routine expenditures to exceed $50,000 annually; and authorize City staff to exercise the option to renew the Agreement for one additional one-year term.