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APPROVE PURCHASE OF 11 NEW PICKUP TRUCKS FROM NISSAN OF STOCKTON (PUR 16-011)
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to approve the purchase of 11 new Nissan Frontier pickup trucks from Nissan of Stockton, of Stockton, CA, in the amount of $245,110.58.
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 11 pickup trucks utilized by Public Works and Community Development Department staff.
On August 6, 2016, the City requested bids for the purchase of 11 new one-quarter ton pickup trucks. On October 6, 2016, two bids were received, with Nissan of Stockton submitting the lowest bid. The recommended motion authorizes the purchase of 11 Nissan Frontier pickup trucks from Nissan of Stockton at a total cost of $245,110.58 (Attachment A).
DISCUSSION
Background
The FY 2016-17 replacement budget for the Fleet ISF includes funding to replace 11 pickup trucks utilized by Public Works and Community Development Department staff. The City’s replacement criteria for light 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 has identified 11 pickup trucks in service that exceed the age and/or mileage criteria, and 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 11 New Pickup Trucks 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.
Two bids were received with the following results:
|
COMPANY NAME |
BID AMOUNT |
ADJUSTED BID AMOUNT (local preference applied) |
|
Nissan of Stockton (Stockton, CA) |
$245,110.58 |
$232,855.06 |
|
Chase Chevrolet (Stockton, CA) |
$275,640.14 |
$261,858.14 |
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. Nissan of Stockton 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, Nissan of Stockton, meets the bid specifications and is regular in all respects. It is recommended that Council approve a motion authorizing the purchase of 11 new one-quarter ton pickup trucks from Nissan of Stockton. The vehicles being replaced will be sold at auction.
FINANCIAL SUMMARY
There are sufficient funds available in the Fleet ISF, Account No. 501-5060-670 for the purchase of 11 new one-quarter ton pickup trucks.
|
ITEM |
EACH |
TOTAL FOR 11 UNITS |
|
¼ Ton Pickup Truck |
$24,342.00 |
$267,762.00 |
|
DMV Document Fee |
$80.00 |
$880.00 |
|
CA Tire & Electronic Filing Fee |
$37.75 |
$415.25 |
|
Discount |
- $4,250.00 |
-$46,750.00 |
|
Sales Tax (9%) |
$2,190.78 |
$24,098.58 |
|
TOTAL PURCHASE PRICE |
$22,282.78 |
$245,110.58 |
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 - Nissan of Stockton Quote
Attachment B - List of Pickup Trucks to be Replaced