REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of Purchase Order to Turf Star Western for Eleven (11) Golf Equipment and Service Vehicles
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a Purchase Order to Turf Star Western of Hayward, CA in the amount of $417,863.92, including an estimated amount of $34,502.52 in sales tax, for the purchase of replacement golf course maintenance equipment and service vehicles.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, which was recently amended to increase the City Manager’s procurement authority, Council approval is required for the procurement of good and/or services greater than $250,000 in any one transaction.
In accordance with Sunnyvale Municipal Code Section 2.08.220(a), the purchasing officer may authorize the City’s participation with one or more other governmental, public or quasi-public agencies in a cooperative agreement for the procurement of goods and/or services, provided that at least one of the agencies has solicited bids using methods similar to those set forth in Sunnyvale Municipal Code Section 2.08.060.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The economical operation of the City’s fleet requires that vehicles and equipment be replaced prior to the time when operating costs exceed the life cycle cost, in accordance with the vehicle replacement schedule. Additionally, the vehicle replacement guidelines allow the City, in its best interest, to modernize the fleet when warranted as newer vehicles are more technically advanced, have improved safety systems, produce fewer emissions and are more fuel-efficient, which minimizes costs and assures safety.
The purchase of these vehicles follows Administrative Policy “Energy Conservation for City Owned Facilities and Equipment” (Chapter 6, Article 4). Subdivision 3.B and 3.C, which specifies that new vehicle purchases shall be energy efficient and, where practical and economically feasible, alternative fuel vehicles shall be considered. Zero emission and hybrid alternative vehicles were researched and considered as part of the vehicle purchase process but were not an option for this specific vehicle type and required specifications.
The identified maintenance equipment being replaced are used to perform daily and routine City maintenance and services at the City’s Sunken Gardens and Sunnyvale Golf Courses. The new equipment replaces existing equipment within the Department of Public Works as outlined in the Fiscal Impact section of this report. The identified golf course maintenance equipment and vehicles are scheduled for replacement per the City’s Equipment Replacement Schedule.
Traditionally, the City has purchased fleet vehicles and equipment through a cooperative purchasing agreement or through a California Statewide Commodity Contract. The City has used cooperative agreements many times in the past to identify vendors and has experienced better pricing than when bidding the goods/services individually. The identified vehicles that meet the City’s requirements are available through Omnia, a national cooperative procurement organization offering publicly solicited contracts to government entities nationwide. It is in the best interest of the City to purchase through the Omnia contracts with Toro, and its local authorized dealer Turf Star Western. Utilizing the Omnia contracts pricing saves time researching and writing numerous vehicle specifications while benefiting from established vehicle pricing through this Agreement.
FISCAL IMPACT
Funding for the Purchase Order is available in the Fleet Equipment Replacement Fund, which is funded by internal service charges based on the use of the equipment. There is $233,209 in replacement funding available for these pieces of equipment. The Fleet Equipment Replacement Fund will absorb the additional $150,152 in cost under the current equipment appropriation. The values will be adjusted and ultimately the Golf and Tennis Operations Fund will be impacted through higher internal service charges for the replacement of this equipment. Useful life ranges from six to twelve years dependent on the piece of equipment.
This table outlines the equipment and total cost of purchase with estimated sales tax.
|
Description |
Unit # |
Quantity |
Unit Cost |
Total |
|
010-Groundsmaster 3500-D T4 Compliant Diesel 24.8HP |
853 |
1 |
$35,519.19 |
$35,519.19 |
|
020-Reelmaster 3100-D Sidewinder |
891 |
1 |
$38,433.77 |
$38,433.77 |
|
030-Multi Pro 1750 |
931 |
1 |
$42,541.96 |
$42,541.96 |
|
040-Topdresser 1800 |
879 |
1 |
$7,844.09 |
$7,844.09 |
|
050-Groundsmaster 4000-D T4 Compliant Diesel 54HP |
852 |
1 |
$68,930.49 |
$68,930.49 |
|
Description |
Unit # |
Quantity |
Unit Cost |
Total |
|
060-Groundsmaster 3200 24HP 2WD |
828 & 896 |
2 |
$20,453.27 |
$40,906.54 |
|
070-Sand Pro 3040 |
850 |
1 |
$21,447.50 |
$21,447.50 |
|
080-Greensmaster 3370 Triflex Electric |
898 |
1 |
$52,672.95 |
$52,672.95 |
|
090-Reelmaster 5010-Hybrid Diesel 24.8HP |
809 |
1 |
$65,229.75 |
$65,229.75 |
|
100-SDI Sprayer Optimum TW160 |
876 |
1 |
$9,835.16 |
$9,835.16 |
|
Sub-Total |
|
|
$362,908.13 |
$383,361.40 |
|
Estimated Tax |
|
|
|
$34,502.52 |
|
Total |
|
|
|
$417,863.92 |
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, Sunnyvale Public Library and Department of Public Safety. In addition, the agenda and report are available at the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Authorize the issuance of a Purchase Order in the amount of $417,863.92, including sales tax, to Turf Star Western for eleven (11) Golf service maintenance equipment and vehicles.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Tim Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Kent Steffens, City Manager