Title
Dept/ Agency: Administration/ Division of Central Purchasing
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Cooperative Purchasing Agreement
Purpose: To authorize the use of Sourcewell Cooperative Contract #011723-JDC to purchase of one (1) 2024 John Deere 544 P Wheel Loader at $278,860.00 and enter into a five (5) year lease for four (4) 2024 John Deere 544 P Wheel Loader with a $1.00 buyout at the end of the lease for the Citywide cleanup and snow detail.
Entity Name(s)/Entity Address(s):
Jesco, Inc., 18 St Nicholas Avenue, South Plainfield, New Jersey 07080; and Deere Credit, Inc. d/b/a John Deere Financial Lease, 6400 NW 86th Street, Johnston, Iowa 50131
Contract Amount: Not to exceed $1,533,992.60
Funding Source: 2024 Budget/Department of Water and Sewer Utilities/NW038-800-8007-94340-2024/Capital Outlay
Contract Period: Commencing upon a date to be established for a one-time purchase of one (1) Loader and five (5) year lease for four (4) Loaders
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient (X) n/a
Additional Information:
Resolution 7R1-c(AS), adopted on April 20, 2022, the Municipal Council authorized membership in the Sourcewell Cooperative.
This Cooperative Purchasing Agreement will purchase wheel loaders for all City Departments.
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WHEREAS, N.J.S.A 40A:11-11(5) and N.J.A.C. 5:34-7.1 et seq. authorize local government units to establish, administer, and participate in cooperative purchasing systems to facilitate the cost-effective provision of goods and services; and
WHEREAS, on April 20, 2022, the Municipal Council adopted Resolution 7R1-c(AS) authorizing the City of Newark’s (the “City’s”) membership in the Sourcewell Cooperative, 202 12th Street NE, Staples, Minnesota 56479, a nationally-recognized and accepted cooperative purchasing organization comprised of contracting units within the meaning of N.J.S.A. 52:34-6.2b(3); and
WHEREAS, N.J.S.A. 52:34-6.2b(3) and Local Finance Notice 2012-10 authorize New Jersey contracting units to purchase goods and services without public bidding under a nationally-recognized and accepted cooperative purchasing agreement where said agreement resulted from the utilization of a competitive bidding process by another contracting unit located either in New Jersey or in any other state; and
WHEREAS, the Department of Public Works, desires to utilize Sourcewell Contract #011723-JDC with Jesco Inc., 118 St Nicholas Avenue, South Plainfield, New Jersey 07205, to purchase one (1) 2024 John Deere 544 P Wheel Loader at $278,860.00 and enter into a five (5) year lease with Deere Credit, Inc. d/b/a John Deere Financial Lease, 6400 NW 86th Street, Johnston, Iowa 50131, for four (4) 2024 John Deere 544 P Wheel Loader with a $1.00 buyout at the end of the lease at a cost not to exceed One Million Two Hundred Fifty-Five Thousand One Hundred Thirty-Two Dollars and Sixty-Three Cents ($1,255,132.63). The lease payments will be made in annual payments of Two Hundred Fifty-One Thousand Twenty-Five Dollars and Seventy-Two Cents ($251,025.72) with a buyout option of $4.00 at the end of the lease commencing 2024 and last annual payment due 2029; and
WHEREAS, said contract was awarded pursuant to a competitive bidding process satisfying New Jersey’s Fair and Open Process criteria; and
WHEREAS, based on quotations obtained, the Division has determined that the contract will result in significant cost savings after all factors are considered, including the time and cost of a separate procurement process; and
WHEREAS, on August 7, 2024, the Division of Central Purchasing published notice of the City’s intention to enter into a contract with Jesco Inc., for the purchase of one (1) wheel loader and the lease with Deere Credit, Inc. d/b/a John Deere Financial Lease, of four (4) wheel loaders for the Department of Public Works (attached hereto).
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor of the City of Newark and/or his designees, the Business Administrator and/or the Interim Purchasing Agent, are hereby authorized to utilize Sourcewell Contract #011723-JDC with Jesco Inc., 118 St Nicholas Avenue, South Plainfield, New Jersey 07205, (“Vendor”) to purchase one (1) 2024 544 P John Deere Wheel Loader at $278,860.00 and enter into a five (5) year lease with and Deere Credit, Inc. d/b/a John Deere Financial Lease, 6400 NW 86th Street, Johnston, Iowa 50131, for four (4) 2024 John Deere 544 P Wheel Loaders with a $1.00 buyout (each) at the end of the lease at a cost not to exceed One Million Two Hundred Fifty-Five Thousand One Hundred Thirty-Two Dollars and Sixty-Three Cents ($1,255,132.63). The lease payments will be made in annual payments of Two Hundred Fifty-One Thousand Twenty-Five Dollars and Seventy-Two Cents ($251,025.72) with a total buyout option of $4.00 at the end of the lease commencing 2024 and last annual payment due 2029.
2. The term of the Agreements authorized herein shall commence upon a date to be established for the one-time purchase of the 2024 544 P John Deere Wheel Loader and the five (5) year lease for the four 2024 544 P John Deere Wheel Loaders.
3. The Mayor of the City of Newark and/or his designees, the Business Administrator and/or the Interim Purchasing Agent, are hereby authorized to consent to the assignment of the agreement and enter into and execute a Tax-Exempt Lease Purchase Agreement and all associated required documents with Deere Credit, Inc. d/b/a John Deere Financial Lease, 6400 NW 86th Street, Johnston, Iowa 50131, in a form substantially similar to the documents attached hereto. The Business Administrator is authorized to direct City Officials to execute all associated and required documents in support of the Lease Purchase Agreement.
4. All purchases, purchase orders, and other ancillary documentation shall accord with the relevant Sourcewell contract, including Standard Terms and Conditions, Methods of Operation, and third-party agreements, if applicable, as contained in the Sourcewell contract documentation and agreements.
5. There shall be no amendments to this resolution without approval of the Municipal Council.
6. This Resolution authorizes a one-time purchase of one (1) John Deere 544 P Wheel Loader at Two Hundred Seventy-Eight Thousand Eight Hundred Sixty Dollars and Zero Cents ($278,860.00) and a Certification of Funds is attached setting forth that such funds are available from the Department of Water and Sewer Utilities Budget, NW038-800-8007-94340-2024/Capital Outlay.
7. This Resolution further authorizes a multi-year lease (5 years) for the purchase of four (4) John Deere 544 P Wheel Loaders. Pursuant to N.J.A.C. 30:5-5(d)(2) this purchase is subject to annual availability and appropriation of funding for each corresponding budget year that the annual payment is due. Account Code Line: Department of Water and Sewer Utilities, NW038-800-8007-94340-2024/Capital Outlay.
8. This contract complies with the Local Pay-to-Play Law and N.J.S.A. 19:44A-20.5, as a contract awarded pursuant to N.J.S.A. 40A:11-11(5) and N.J.A.C. 5:34-7.1 et seq.
9. If required by State Law, the City Clerk shall provide the appropriate Notice of Award of this contract to the State Comptroller, no later than twenty (20) business days following such award in accordance with N.J.S.A. 52:15C-10 and the Notice of the Office of the State Comptroller dated May 7, 2008.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark and/or his designees, the Business Administrator and/or the Interim Purchasing Agent, to utilize Sourcewell Cooperative Contract #011723-JDC with authorized vendor Jesco, Inc. 118 St Nicholas Avenue, South Plainfield, New Jersey 07205, to purchase one (1) 2024 John Deer Wheel Loader at $278,860.00 and enter into a five (5) year lease agreement with Deere Credit, Inc. d/b/a John Deere Financial Lease, 6400 NW 86th Street, Johnston, Iowa 50131, for four (4) 2024 John Deere 544 P Wheel Loaders with a $1.00 buyout (each) at the end of the lease at a cost not to exceed $1,255,132.63.