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HomeMy WebLinkAbout16. 20-339 JULY 28, 2020 20-339 RESOLUTION (CARRIED__7-0____ LOST________ LAID OVER________ WITHDRAWN_________) PURPOSE: APPROVE WAIVER OF PURCHASING REQUIREMENTS AND AUTHORIZE STAFF TO NEGOTIATE PURCHASE OF REFUSE TRUCKS FOR THE SANITATION DIVISION INITIATED BY: ADMINISTRATION WHEREAS, on November 12, 2019, the Common Council adopted the 2020 Capital Improvement Program (CIP) for 2020, which included the purchase of two (2) refuse trucks for the Sanitation Division; and WHEREAS, the 2020-2024 CIP includes the proposed purchase of two (2) additional refuse trucks in 2021; and WHEREAS, Section 12-10 of the Oshkosh Municipal Code requires that purchases in excess of $25,000 be competitively bid; and WHEREAS, the Oshkosh Fire Department has had success working closely with Pierce Manufacturing, a division of Oshkosh Corporation, to review, test, and seek proposals for the purchase of fire apparatus, realizing competitive prices as well as long term service reliability; and WHEREAS, Oshkosh Corporation has approached the City of Oshkosh about submitting a proposal to sell the city refuse trucks from McNielus Corporation, a division of Oshkosh Corporation, offering the same competitive pricing and long term service reliability that they have offered to the city for fire apparatus. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the purchasing requirements related to advertisement, competitive proposals and bidding as set forth in Chapter 12 of the Oshkosh Municipal Code are hereby waived and the City Manager and Director of Public Works are hereby directed to solicit proposals and recommend the purchase of new refuse trucks that are suited to the operational and safety needs of the Sanitation Division, and meet the budgetary requirements set out in the city’s CIP. City0 Oshkosh TO: Honorable Mayor and Member FROM: James Rabe, Director of Public DATE: July 23, 2020 RE: Approve Waiver of Purchasing Requirements and Authorize Staff to Negotiate Purchase of Refuse Trucks for the Sanitation Division BACKGROUND The 2020 Capital Improvement Program (CIP) and the proposed 2021 CIP include an allocation of $600,000 in each year for the Public Works Department/Sanitation Division to replace a total of four (4) refuse trucks. The City of Oshkosh Municipal Code requires that all purchases, services, supplies, materials, and equipment in excess of $25,000 be competitively bid. In the past, Council has waived this requirement for the Fire Department and permitted them to negotiate the purchase of fire apparatus through Pierce Manufacturing, a division of Oshkosh Corporation. This arrangement has been successful by allowing the City to develop specifications that meet our needs and to seek competitive pricing from a local vendor, which keeps local tax dollars with a company headquartered in Oshkosh. This arrangement also ensures the operational and safety needs of the equipment are addressed. ANALYSIS Due to the success of the above -referenced purchasing arrangement with the Fire Department, Oshkosh Corporation has approached the City about a similar arrangement for the purchase of refuse trucks for the Sanitation Division. Staff believes that waiving the purchasing requirements in this instance will offer similar benefits to the City as it has in the past when negotiating for the fire apparatus. FISCAL IMPACT $600,000 is budgeted in the 2020 CII' budget to cover the purchase of two (2) refuse trucks. By the time negotiations are complete, it is anticipated another $600,000 will be budgeted in the 2021 CIP budget for the remaining two (2) trucks. By the time the trucks are ordered, built, and ready for delivery, the 2021 CII' budget will be approved. 1: \ Engineering\Tracy Taylor \Memos to Mayor & Common Council \2020\ Waive Purch Rules and Page 1 of 2 Direct Purch Sanitation Trucks 7-23-20.d. RECOMMENDATION We recommend that the Council waive the purchasing requirements of Section 12-10 of the Oshkosh Municipal Code to allow the Department of Public Works staff to review, test, and negotiate the purchase of refuse trucks that will meet the needs and budgetary requirements for the Sanitation Division. Approved: Mark A. Rohloff City Manager JER/Ut l:\Engineering\Tracy Taylor\ Memos to Mayor & Common Council\2020\ Waive Purch Rules and Page 2 of 2 Direct Porch Sanitation Trucks 7-23-20.docx