title
APPROVE RESOLUTION TO AUTHORIZE THE PURCHASE OF FOURTEEN VARIOUS PICKUP TRUCKS
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City Manager to:
1. Approve the purchase of 14 pickup trucks from Big Valley Ford of Stockton, CA, in the amount of $563,557.90.
2. Appropriate funds in the amount of $254,883.60 from the Wastewater Utility Fund fund balance (431-0000-287.00-00) to purchase of six of the 14 pickup trucks from Big Valley Ford.
3. Appropriate funds in the amount of $308,674.30 from the Fleet Internal Service Fund fund balance (501-0000-101.00-00) to purchase of eight of the 14 pickup trucks from Big Valley Ford.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Fiscal Year (FY) 2016-17 replacement budgets for the Fleet Internal Service Fund and the Municipal Utilities Department (MUD) Capital Outlay accounts included funding to replace 14 various pickup trucks utilized by Public Works and MUD staff.
On January 19, 2017, the City requested bids for the purchase of 14 various pickup trucks. On February 9, 2017, two bids were received, with Big Valley Ford submitting the lowest bid. The recommended resolution authorizes the purchase of 14 various pickup trucks from Big Valley Ford at a total cost of $563,557.90 (Attachment A).
The truck purchases were commenced but not completed in FY 2016-17. To complete the purchases, staff recommends appropriating the funding from the fund balances to the Fleet ISF and MUD operating accounts for FY 2017-18.
DISCUSSION
Background
The FY 2016-17 replacement budgets for the Fleet ISF and the corresponding MUD Capital Outlay accounts included funding to replace pickup trucks utilized by Public Works and MUD staff for field use. The City’s replacement criteria for pickup trucks, based on industry standards for performance and efficiency, is ten years or 100,000 miles. Adherence to this standard replaces equipment before routine failures and breakdowns are experienced, reducing the demand for extensive mechanical repairs. This increases the resources available for preventative maintenance and is critical to the availability and performance of all fleet equipment, which includes all public safety and emergency response vehicles. Fleet staff identified 14 vehicles in service that exceed the age and/or mileage criteria, or have recurring mechanical or operational problems (Attachment B). Replacement of these units is recommended.
Fleet staff prepared vehicle specifications and utilized the competitive bid process to obtain bids for the supply of these vehicles. The specifications were generic and designed such that any of the major pickup truck manufacturers could bid.
Present Situation
A Notice Inviting Bids for the purchase of 14 various new pickup trucks was published in The Record on Saturday, January 21, 2017, and Sunday, January 22, 2017, respectively. On that same weekend, the Notice went out to 19 local area vendors. A notification was also e-mailed through ASK Stockton to 2,265 recipients.
On February 9, 2017, two bids were received with the following results:
|
COMPANY NAME |
ORIGINAL BID AMOUNT (8.75% SALES TAX) |
REVISED BID AMOUNT (9% SALES TAX) |
|
Big Valley Ford, Stockton, CA |
$562,265.55 |
$563,557.90 |
|
Chase Chevrolet, Stockton, CA |
$573,490.69 |
$574,809.06 |
The bids submitted included sales tax at a rate of 8.75 percent, which was correct at the time of the bid. The bids were revised to reflect the current nine percent sales tax rate (the additional .25 percent from Measure M took effect on April 1, 2017). The adjustment does not change the bid order.
Stockton Municipal Code section 3.68.090 gives a five percent bid preference to businesses located within the City of Stockton, and a two percent bid preference to businesses located within San Joaquin County. Big Valley Ford and Chase Chevrolet are located within the City of Stockton, therefore, application of local preference does not change the bid order.
The bid from the low bidder, Big Valley Ford, meets the bid specifications and is regular in all respects. It is recommended that Council adopt a resolution approving the purchase of 14 various new pickup trucks from Big Valley Ford. The vehicles being replaced will either be sold at auction or if wrecked, used as parts cars and then sold as scrap.
The purchase process was commenced but not completed in FY 2016-17. To complete the purchase, these funds need to be appropriated to the FY 2017-18 operating budgets.
FINANCIAL SUMMARY
Additional funding needs to be appropriated from the Fleet ISF fund balance and the Wastewater Utility Fund fund balance as follows:
|
FROM |
TO |
AMOUNT |
|
501-0000-101 |
501-5060-670 |
$308,674.30 |
|
431-0000-287 |
431-4332-606 |
$127,441.80 |
|
431-0000-287 |
431-4333-606 |
$127,441.80 |
|
TOTAL |
|
$563,557.90 |
With the additional appropriations, there are sufficient funds available in the account numbers listed below for the purchase of 14 various new pickup trucks.
|
PICKUP QUANTITY AND TYPE |
DEPARTMENT AND ACCOUNT NAME |
ACCOUNT NUMBER |
AMOUNT |
|
3 - one-ton service body pickups |
MUD Capital Outlay Sanitary Sewers |
431-4332-606 |
$127,441.80 |
|
3 - one-ton service body pickups |
MUD Capital Outlay Sanitary Pump Stations |
431-4333-606 |
$127,441.80 |
|
1 - one-ton service body pickup |
Public Works - Fleet ISF |
501-5060-670 |
$ 42,660.45 |
|
1 - heavy duty cab and chassis |
Public Works - Fleet ISF |
501-5060-670 |
$ 37,048.70 |
|
1 - one-ton cab and chassis |
Public Works - Fleet ISF |
501-5060-670 |
$ 28,437.70 |
|
2 - ½ ton pickups |
Public Works - Fleet ISF |
501-5060-670 |
$ 47,040.10 |
|
1 - ¾ ton pickup |
Public Works - Fleet ISF |
501-5060-670 |
$ 29,416.95 |
|
2 - ¾ ton service body pickups |
Public Works - Fleet ISF |
501-5060-670 |
$124,070.40 |
Purchase breakdown of 14 various pickup trucks from Big Valley Ford:
|
Unit Price Total |
$515,790.00 |
|
DMV Document Fee |
$1,120.00 |
|
Sales Tax (9%) |
$46,521.90 |
|
CA Tire Fee |
$126.00 |
|
TOTAL PURCHASE PRICE |
$563,557.90 |
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - Bid from Big Valley Ford
Attachment B - Pickup Truck Replacement List