Title
MOTION TO APPROVE THE PURCHASE OF ONE (1) CROWN SC 5700 SERIES FORKLIFT FROM CROWN EQUIPMENT CORPORATION DBA CROWN LIFT TRUCKS, IN THE AMOUNT NOT TO EXCEED $46,108, WHICH INCLUDES SHIPPING; UTILIZING PRICING ESTABLISHED BY THE SOURCEWELL CONTRACT # 053024-CRO, PURSUANT TO SECTIONS 35.18(C)(6) OF THE CITY'S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN
- Chapter 35 of the City’s Code of Ordinance is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18 (C)(6) states that “Cooperative purchasing plans are exempt from this section.”
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval."
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. The Public Services Department is requesting to purchase the Crown SC 5700 Series forklift to be used at the Central Stores Warehouse.
2. The Central Stores Warehouse is the City’s central location for storing inventory and supplies and receiving large deliveries. To support operations, a forklift is required and shared among various Public Services crews working within the warehouse. The proposed purchase is for a replacement forklift, as the current unit has been in service since 1989 and needs to be replaced.
3. On September 4, 2024, Sourcewell entered into contract # 053024-CRO with Crown Equipment Corporation to provide forklifts and lift trucks with related products and services to Sourcewell and the entities that access Sourcewell's cooperating purchasing contracts.
4. Sourcewell is a State of Minnesota local government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that facilitates a competitive public solicitation and contract award process for the benefit of its 50,000+ members across the United States and Canada. Sourcewell’s solicitation process complies with Minnesota law and policies, and results in cooperative contracting solutions from which Sourcewell’s members procure equipment, products, and services.
5. Crown Equipment Corporation dba Crown Lift Trucks has provided a quote for a Crown SC 5700 Series Forklift under Sourcewell contract 053024-CRO.
|
Vehicle/Equipment |
Piggyback / Co-op Contract |
Cost |
|
Crown SC 5700 Series |
053024-CRO |
$46,108.00 |
|
|
|
|
The proposed forklift is an electric unit powered by a V-Force Lead Acid - 36V 540AH battery. The unit is more energy efficient, operates on clean energy, provides improved mast height reach, and offers a more compact design with a better/tighter turning radius for improved maneuverability. The quote includes the forklift, battery and charger.
6. The Procurement Department has reviewed the quote and has verified it complies with the terms of the Sourcewell contract.
7. Request Commission to approve the purchase of one (1) Crown SC 5700 series forklift from Crown Equipment Corporation dba Crown Lift Trucks, in the amount not to exceed $46,108, which includes shipping; utilizing pricing established by the Sourcewell Contract # 053024-CRO, pursuant to Sections 35.18(C)(6) of the City's Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $46,108
b) Amount budgeted for this item in Account No: 001-519-6001-664400-0000-000-0000 (Other Equipment)
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5-year projection of the operational cost of the project Not Applicable.
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.