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APPROVE PURCHASE OF ELEVEN TRUCKS FROM BIG VALLEY FORD
(PUR 14-031)
recommended action
RECOMMENDATION
It is recommended that the City Council reject bids from Elk Grove Auto Group and Chase Chevrolet as unresponsive and approve a motion awarding the bid to Big Valley Ford of Stockton, California, authorizing the purchase of eleven new trucks from Big Valley Ford of Stockton, California, in the amount of $445,470.25.
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.
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Summary
On January 31, 2015, the City requested bids for purchase of eleven new trucks. On February 19, 2015, three bids were received with Big Valley Ford submitting the only complete bid. The recommended motion authorizes the purchase of eleven new trucks from Big Valley Ford for a total cost of $445,470.25 (Attachment A - Bid from Big Valley Ford).
DISCUSSION
Background
The fiscal year 2014-15 replacement budget for the Fleet Internal Service Fund and the corresponding Municipal Utilities Department (MUD) accounts include funding to purchase eleven trucks for field use. Fleet staff has identified eleven 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.
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 number and types of trucks are:
• Six 1 ton extended cab service body pickups
• One ¾ ton extended cab pickup with animal control service body
• One ¾ ton extended cab pickup with standard service body
• One ¾ ton extended cab pickup with "eliminator" style service body
• One ½ ton cargo van
• One 1 ton flatbed truck
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 eleven new 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 21 vendors, including Big Valley Ford, Chase Chevrolet, and Stockton Dodge. A notification was also e-mailed through ASK Stockton to 2,718 recipients.
On February 19, 2015, one complete responsive bid was received with the following result:
Big Valley Ford $445,470.25
3282 Auto Center Circle
Stockton, CA 95212
The other two bids received were as follows:
Elk Grove Auto Group $374,686.68
8575 Laguna Drive
Elk Grove, CA 95757
Chase Chevrolet $443,984.53
6441 Holman Road
Stockton, CA 95212
It is recommended that Council reject the submittals of Elk Grove Auto Group and Chase Chevrolet as unresponsive, because they either did not bid on all vehicles or the bid did not meet the specifications. Elk Grove Auto Group did not submit bids for two of the bid items (½ ton cargo van and 1 ton flatbed), making their bid incomplete. Chase Chevrolet listed trucks for two of the bid items (1 ton extended cab service body and 1 ton flatbed) that did not meet the minimum specification for Gross Vehicle Weight Rating; therefore, their bid does not qualify.
Big Valley Ford qualifies as a local merchant according to the provision of Stockton Municipal Code Section 3.68.090, "Local Business Preference". Big Valley Ford submitted the lowest qualifying bid; therefore, there is no need to adjust the bids for local preference.
The bid from the low bidder, Big Valley Ford, meets the bid specifications and is regular in all respects. It is recommended that Council approve a motion authorizing the purchase of eleven trucks from Big Valley Ford (Attachment B). The vehicles being replaced will either be sold at auction or, if wrecked, used for parts and then sold as scrap.
FINANCIAL SUMMARY
Sufficient funds are available in the applicable account numbers for the six pickup trucks to be utilized by MUD - Wastewater and the four trucks/one van to be utilized by the Public Works Department and Animal Control. The specific cost and account number to be charged are shown below for each vehicle.
TYPE OF TRUCK |
DEPARTMENT |
ACCOUNT NO. |
COST PER UNIT (with tax and fees) |
¾ ton Animal Control |
Animal Control |
501-5060-670 |
$ 62,116.95 |
¾ ton standard srv |
Public Works |
501-5060-670 |
$ 37,869.90 |
¾ ton eliminator srv |
Public Works |
501-5060-670 |
$ 35,924.25 |
½ ton cargo van |
Public Works |
501-5060-670 |
$ 23,356.55 |
1 ton flatbed |
Public Works |
501-5060-670 |
$ 54,143.60 |
|
|
SUBTOTAL |
$213,411.25 |
1 ton e/c, srv |
MUD |
431-4331-606 |
$ 38,676.50 |
|
|
SUBTOTAL - 3 units |
$116,029.50 |
1 ton e/c, srv |
MUD |
421-4234-606 |
$ 38,676.50 |
|
|
SUBTOTAL - 3 units |
$116,029.50 |
|
|
GRAND TOTAL |
$445,470.25 |
*e/c = extended cab srv = service body
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.
Total Purchase of Eleven Trucks |
$407,720.00 |
DMV Fees |
$ 880.00 |
State Sales Tax (9%) |
$ 36,774.00 |
Tire Fees |
$ 96.25 |
Total Purchase Price |
$445,470.25 |
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 Big Valley Ford
Attachment B - Pickup Truck Replacement List