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APPROVE PURCHASE OF 25 SEDANS FROM BIG VALLEY FORD (PUR 16-010)
recommendation
RECOMMENDATION
It is recommended that the City Council approve a motion to approve the purchase of 25 Ford Taurus sedans from Big Valley Ford of Stockton, California, in the amount of $593,451.25.
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 motion.
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Summary
The Fiscal Year (FY) 2016-17 replacement budget for the Fleet Internal Service Fund (ISF) includes funding to replace 15 unmarked sedans used by the Police Department. The FY 2016-17 budget for Measure A includes funding for 10 additional unmarked sedans as part of the Marshall Plan.
On August 6, 2016, the purchase of 25 New Four-Door Sedans was put out to bid. On October 6, 2016, six bids were received and Big Valley Ford was the low bidder after applying the local vendor bid preference. The recommended motion authorizes the purchase of 25 Ford Taurus sedans from Big Valley Ford at a total cost of $593,451.25 (Attachment A).
DISCUSSION
Background
The FY 2016-17 replacement budget for the Fleet ISF includes funding to replace 15 unmarked sedans used by the Police Department. The FY 2016-17 General Fund budget for Measure A includes funding for 10 additional unmarked sedans to be used by new personnel hired as part of the Marshall Plan. These units are typically operated by sergeants, detectives, and sworn administrative staff. Fleet staff has identified 15 existing administrative police sedans that have advanced age (over 10 years), high mileage (over 100,000 miles), and/or recurring mechanical problems (Attachment B). These factors make them unreliable for continued daily use and increasingly costly to keep in service. Replacement of these units is recommended. In addition to the 15 replacement sedans, the Measure A funds allow for purchase of 10 additional sedans (non-replacement) for use by new personnel being hired as a result of Measure A. In total, 120 new officer positions will be added to the force using Measure A proceeds, and it is projected that 80 of these new positions will be in place by the end of the current fiscal year. Although this rate of addition to the force is delayed from initial projections, staff recommends proceeding with the vehicle acquisition. It takes approximately four months from order date for new vehicles to be delivered and set up for use; ordering the vehicles in advance of hiring completion will ensure that sufficient units are available when needed.
Present Situation
A Notice Inviting Bids for the purchase of 25 New Four-Door Sedans was published in The Record on Saturday, September 10, 2016, and Sunday, September 11, 2016, respectively. On that same weekend, the notice went out to 17 local area vendors. A notification was also e-mailed through ASK Stockton to 2,265 recipients.
Six bids were received with the following results:
|
COMPANY NAME |
BID AMOUNT |
ADJUSTED BID AMOUNT (local preference applied) |
|
Big Valley Ford (Stockton, CA) |
$593,451.25 |
$563,778.69 |
|
Chase Chevrolet (Stockton, CA) |
$601,106.25 |
$571,050.94 |
|
Albany Ford-Subaru (Albany, CA) |
$573,803.33 |
$573,803.33 |
|
Ron DuPratt Ford (Dixon, CA) |
$586,016.00 |
$586,016.00 |
|
Nissan of Stockton (Stockton, CA) |
$664,523.75 |
$631,297.56 |
|
San Leandro Ford (San Leandro, CA) |
$702,797.94 |
$702,797.94 |
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, Nissan of Stockton, and Chase Chevrolet are located in Stockton, and a five percent bidder preference has been applied to their original bid amount. After application of the bid preference, Big Valley Ford is the low bidder.
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 25 Ford Taurus Sedans 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.
FINANCIAL SUMMARY
There are sufficient funds available in the Fleet ISF, Account No. 501-5060-670, for the purchase of 15 sedans at $356,070.75 and the General Fund Police Field Services, Account No. 014-2422-630, from Measure A proceeds for the purchase of 10 sedans at $237,380.50.
|
2016 Ford Taurus Sedans, 25 units @ $21,690 each |
$542,250.00 |
|
DMV Document Fees |
$ 2,000.00 |
|
State Sales Tax (9%) |
$ 48,982.50 |
|
Tire Fees |
$ 218.75 |
|
Total Purchase Price |
$593,451.25 |
The purchase of 15 sedans to replace existing vehicles in the City’s fleet is budgeted in the Fleet ISF, a fund that provides centralized fleet management and maintenance through reimbursed from all City funds including the General Fund. The 10 new sedans are to be purchased using General Fund Measure A Sales Tax proceeds. The City Manager is authorized to record any and all appropriations and transactions necessary to accomplish the intent of this motion
Attachment A - Big Valley Ford Quote
Attachment B - List of Sedans to be Replaced