Amended City Council Regular


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  ITEM 5.       
Meeting Date: 02/09/2021  
Submitted For: Michelle Woytenko
Department: Field Operations  

Subject
AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH TITAN MACHINERY, INC., FOR HEAVY DUTY FLEET, CONSTRUCTION AND AGRICULTURAL/INDUSTRIAL PARTS, SERVICE, AND ACCESSORIES
Presented by: Michelle Woytenko, Director, Field Operations
Purpose and Recommended Action
This is a request for City Council to authorize the City Manager to enter into a Linking Agreement with Titan Machinery, Inc., for heavy duty fleet, construction and agricultural/industrial parts, service, and accessories for an initial term until September 30, 2021, and to authorize the City Manager to renew the Agreement, at the City Manager’s discretion, for an additional four, one-year renewals, for a total not to exceed amount of $500,000 for the entire term of the Agreement.
 
Background
The Field Operations Department maintains a diverse fleet of vehicles and associated equipment used to support key city operations including Police and Fire services, Solid Waste collection and disposal divisions, Transportation Services, and Water Services.  The purchase of parts, service, and accessories for the repair of heavy duty trucks and equipment from outside vendors is required to keep specialized vehicles and machinery functioning properly.
 
Titan Machinery, Inc., was awarded a bid by Maricopa County, Contract No. 200209-C, for Heavy Duty Fleet, Construction and Agricultural/Industrial Parts, Service, and Accessories, on September 16, 2020, is effective through September 30, 2021, and includes an option to renew the term for an additional four, one-year renewals, allowing the contract to be extended through September 30, 2025.
 
On October 13, 2016, the city entered into Contract Amendment No. 2 with Titan Machinery, Inc., C-10265-2, extending the term of the agreement through July 31, 2020. 
 
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 the city’s Procurement Division.
 
Analysis
Titan Machinery, Inc., is a service provider for the repair of heavy duty trucks and equipment.  This contract allows for repairs and equipment failures to be serviced in a timely manner and provide staff the flexibility to manage operations in order to provide uninterrupted services to the community.  
 
Previous Related Council Action
On February 23, 2016, Council authorized entering into Amendment No. 1 with Titan Machinery, Inc., C-10265-1, increasing the total expenditure authorization amount of $175,000 from $225,000 to $400,000.
 
On September 8, 2015, Council authorized entering into a Linking Agreement with Titan Machinery, Inc., C-10265, in an amount not to exceed $225,000.

 
Community Benefit/Public Involvement
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.

Fiscal Impact
Fiscal Year: FY2020-21
Fiscal Year Amount Requested: $100,000.00
Budgeted Y/N?: Y
Account: 70402843-525130
Transfer Required? Y/N: N
If Yes, what account will be used?:
Budget and Financial Impacts:
Funding is available in the Fiscal Year 2020-21 Fleet Management Division operating and maintenance budget.  Expenditures with Titan Machinery, Inc., are not to exceed $500,000, for the entire term of the Agreement.  Expenditures beyond the current fiscal year will be contingent upon Council Budget approval.
Attachments
Linking Agreement


    

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