HomeMy WebLinkAboutR 2026-05465501.00014\44272638.2
RESOLUTION NO. 2026-054
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE APPROVING THE PURCHASE OF A VACTOR 2110 SEWER
CLEANER/VACUUM TRUCK THROUGH THE SOURCEWELL
COOPERATIVE PURCHASING PROGRAM; AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AGREEMENT WITH HAAKER
EQUIPMENT COMPANY IN AN AMOUNT NOT TO EXCEED
$689,099.81; AUTHORIZING THE CITY MANAGER TO EXECUTE A
MUNICIPAL LEASE-PURCHASE FINANCING AGREEMENT AND
RELATED DOCUMENTS WITH NCL GOVERNMENT CAPITAL IN AN
AMOUNT NOT TO EXCEED $772,013.00
WHEREAS, the City of Arroyo Grande (“City”) owns and operates a sanitary sewer
collection system and related public utility infrastructure; and
WHEREAS, the City’s existing 2013 vacuum truck has exceeded its anticipated service
life and is a critical piece of equipment used to clean the City’s sewer system, respond to
sewer overflows, and perform hydroexcavation activities necessary for the operation and
maintenance of public infrastructure; and
WHEREAS, Section 3.08.070(C)(3) of the Arroyo Grande Municipal Code and Section
4.6, subsection 3, of the City’s Purchasing Policy authorize the use of cooperative
purchasing agreements, including contracts awarded through Sourcewell; and
WHEREAS, Haaker Equipment Company is an authorized dealer under Sourcewell
Contract No. 101221-VTR and has provided a quotation for one (1) new Diesel Vactor
2110 Single Engine Fan Sewer Cleaner mounted on a 2027 Freightliner 114SD chassis
(the “Equipment”) in the amount of $689,099.81, including applicable sales tax; and
WHEREAS, City staff has determined that procurement of the Equipment through the
Sourcewell cooperative purchasing program provides a competitive and cost -effective
method for acquiring the Equipment; and
WHEREAS, the City has solicited financing proposals and determined that financing
through Lease Servicing Center, Inc. dba NCL Government Capital, pursuant to the
Sourcewell cooperative purchasing program, Sourcewell Contract No. 092323-NCL,
provides financing terms acceptable to the City; and
WHEREAS, NCL Government Capital has proposed a municipal lease-purchase
financing agreement in an amount not to exceed $772,013, with an annual percentage
rate not to exceed 5.99 percent and annual payments of approximately $154,303 over a
five-year term; and
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RESOLUTION NO. 2026-054
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WHEREAS, the City Council desires to authorize the City Manager to execute all
agreements and documents necessary to complete the purchase and financing of the
vacuum truck, subject to review and approval as to form by the City Attorney; and
WHEREAS, at its regular meeting on June 23, 2026, the City Council considered the staff
report with the subject line “Vacuum Truck Lease,” together with all related agenda
materials and attachments, including the Haaker Equipment quote, Sourcewell
cooperative purchasing contracts, proposed lease -purchase financing documents, and
other information presented by City staff, all of which are incorporated herein by this
reference as though fully set forth herein; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande
that:
1. Recitals. All recitals above are true and correct and incorporated herein.
2. CEQA. The City Council of the City of Arroyo Grande finds that approval of the
purchase of municipal equipment and municipal lease constitutes an
organizational or administrative activity of government that will not result in a direct
or indirect physical change in the environment and is therefore not a project under
the California Environmental Quality Act (“CEQA”) pursuant to State CEQA
Guidelines section 15378(b)(5).
3. Approval of Purchase. The City Council hereby approves the purchase of the
Equipment from Haaker Equipment Company through the Sourcewell cooperative
purchasing program in an amount not to exceed Six Hundred Eighty -Nine
Thousand Ninety-Nine Dollars and Eighty-One Cents ($689,099.81).
4. Approval of Financing. The City Council hereby approves a municipal lease-
purchase financing agreement to finance the Equipment with NCL Government
Capital in a principal amount not to exceed Seven Hundred Seventy -Two
Thousand Thirteen Dollars ($772,013.00), upon terms substantially consistent with
those presented to the City Council, including an annual percentage rate not to
exceed 5.99 percent and a term not to exceed five (5) years.
5. City Manager Authorization. The City Manager, or City Manager’s designee, is
hereby authorized and directed to execute all agreements, schedules, certificates,
financing documents, escrow documents, purchase orders, notices,
acknowledgements, acceptances, and any other documents necessary or
convenient to effectuate the acquisition and financing of the Equipment, including
but not limited to:
a. A purchase agreement or purchase order with Haaker Equipment Company
and incidental or necessary documents thereto;
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RESOLUTION NO. 2026-054
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b. A lease-purchase financing agreement with NCL Government Capital and
incidental or necessary documents thereto;
The City Manager is authorized to execute such documents subject to such minor,
technical, non-substantive, or clarifying revisions as may be approved by the City
Manager in consultation with the City Attorney.
6. Effective Date. This Resolution shall take effect immediately upon adoption.
On motion of Council Member Guthrie, seconded by Council Member Secrest, and on the
following roll call vote, to wit:
AYES: Council Members Guthrie, Secrest, Maraviglia, and Mayor Ray Russom
NOES: None
ABSENT: Council Member Loe
the foregoing Resolution was passed and adopted this 23 rd day of June, 2026.
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
RESOLUTION NO. 2026-054
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OFFICIAL CERTIFICATION
I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the
attached Resolution No. 2026-054 was passed and adopted at a regular
meeting of the City Council of the City of Arroyo Grande on the 23rd day of June, 2026.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 25th day of
June, 2026.
JESSICA MATSON, CITY CLERK