title
APPROVE PURCHASE OF FOURTEEN ONE-QUARTER TON TRUCKS FROM CHASE CHEVROLET (PUR 15-005)
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion authorizing the purchase of fourteen new ¼ ton trucks from Chase Chevrolet of Stockton, California, in the amount of $305,520.88.
It is further recommended that the motion authorize the City Manager to take appropriate actions to carry out the purpose and intent of this motion.
body
Summary
On January 31, 2015, the purchase of fourteen new ¼ ton trucks was put out to bid. On February 19, 2015, two bids were received. Winner Chevrolet from Sacramento, CA submitted a bid in the amount of $302,270.50 and Chase Chevrolet from Stockton, CA submitted a bid in the amount of $305,520.88. However, because Chase Chevrolet is a local Stockton business, this vendor was awarded the 5% local bid preference based on the local business preference Ordinance that the City Council adopted on March 18, 2014. The result is that Chase Chevrolet is the low bidder after applying the local bid preference with an adjusted bid amount of $290,244.84. The recommended motion authorizes the purchase of fourteen new ¼ ton trucks from Chase Chevrolet for a total cost of $305,520.88 (Attachment A - Bid from Chase Chevrolet).
DISCUSSION
Background
The fiscal year 2014-15 replacement budget for the Fleet Internal Service Fund, the General Fund using Measure A proceeds, and the corresponding Municipal Utilities Department (MUD) accounts include funding to purchase fourteen ¼ ton trucks for field use. Seven of the trucks are replacements for existing vehicles, and seven are additions to the fleet. Fleet staff has identified seven vehicles in service that have advanced age, high mileage, and/or reoccurrence of mechanical problems (Attachment B). These factors make them unreliable for continued daily use and cost prohibitive to repair. The Fleet Manager recommends replacement of these vehicles. In addition, there is a need and funding set aside for seven new trucks that will be used by the Neighborhood Services Division of the Police Department in support of the Marshall Plan on Crime.
Fleet staff prepared vehicle specifications and utilized the formal bid process to give area dealers the opportunity to bid on these vehicles for the City. The specifications were generic and designed such that any of the major pickup truck manufacturers could bid. In general, it is preferable in multi-vehicle purchases that the new units are from the same manufacturer. The standardization achieved by acquiring the same brand of vehicle allows for reduced vehicle set up costs, efficient parts stocking, and uniform training for City mechanics.
Present Situation
The Notice Inviting Bids for the purchase of fourteen new ¼ ton trucks was published in The Record on Saturday, January 31, 2015, and Sunday, February 1, 2015, respectively. On that same weekend, the Notice went out to five vendors, including Chase Chevrolet, Stockton Honda, Toyota Town of Stockton, and Nissan of Stockton. A notification was also e-mailed through ASK Stockton to 2,718 recipients.
On February 19, 2015, two bids were received with the following results:
COMPANY NAME |
BID AMOUNT |
ADJUSTED BID AMOUNT (local preference applied) |
Chase Chevrolet, Stockton, CA |
$305,520.88 |
$290,244.84 (5%) |
Winner Chevrolet, Sacramento, CA |
$302,270.50 |
$302,270.50 |
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. Chase Chevrolet is located in Stockton, and a five percent bidder preference has been applied to their original bid amount. After application of the bid preference, Chase Chevrolet is the low bidder.
The bid from the low bidder, Chase Chevrolet, meets the bid specifications and is regular in all respects. It is recommended that Council approve a motion authorizing the purchase of fourteen ¼ ton trucks from Chase Chevrolet (Attachment B). The vehicles being replaced will either be sold at auction or, if wrecked, used as parts cars, and then sold as scrap.
FINANCIAL SUMMARY
Sufficient funds are available for this purchase in the following account numbers:
Seven new trucks for Marshall Plan on Crime |
014-2425-630 |
$ 87,291.68 |
|
014-2428-630 |
$ 65,468.76 |
Four pickup trucks for MUD |
431-4331-606 |
$ 65,468.76 |
|
431-4334-606 |
$ 10,822.92 |
|
441-4334-606 |
$ 1,000.00 |
|
421-4334-606 |
$ 10,000.00 |
Three replacement pickup trucks for Neighborhood Services Division |
501-5060-670 |
$ 65,468.76 |
|
TOTAL |
$305,520.88 |
Note that the total price listed in the staff report includes the $80 per vehicle taxable DMV document processing fee not listed in the bid.
Fourteen ¼ ton trucks @ $19,933.00 each |
$279,062.00 |
DMV Fees |
$ 1,120.00 |
State Sales Tax (9%) |
$ 25,216.38 |
Tire Fees |
$ 122.50 |
Total Purchase Price |
$305,520.88 |
The City Manager is authorized to record any and all transactions necessary to accomplish the intent of this motion. There is no impact to the City's General Fund or to any other unrestricted fund as a result of taking the recommended action.
Attachment A - Bid from Chase Chevrolet
Attachment B - List of Existing Units to be Replaced