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APPROVE PURCHASE OF EIGHT NEW TRUCKS FROM CHASE CHEVROLET (PUR 17-042)
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to approve the purchase of eight new Chevrolet Colorado trucks from Chase Chevrolet, of Stockton, CA, in the amount of $208,257.82.
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) 2017-18 replacement budget for the Fleet Internal Service Fund (ISF) and corresponding Municipal Utilities Department accounts include funding to replace eight pickup trucks utilized by the Fire Department, Municipal Utilities Department, Community Development Department, and Public Works staff.
On December 7, 2017, the City requested bids for the purchase of eight new one-quarter ton trucks. On December 28, 2017, three bids were received, with Chase Chevrolet submitting the lowest bid. The recommended motion authorizes the purchase of eight Chevrolet Colorado trucks from Chase Chevrolet at a total cost of $208,257.82 (Attachment A).
DISCUSSION
Background
The FY 2017-18 replacement budget for the Fleet ISF and corresponding Municipal Utilities Department accounts include funding to replace eight pickup trucks utilized by the Fire Department, Municipal Utilities Department, Community Development Department, and Public Works staff.
The City’s replacement criteria for light trucks, based on industry standards for performance and efficiency, is 10 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 eight vehicles from these departments 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 truck manufacturers could bid.
Present Situation
A Notice Inviting Bids for the purchase of eight one-quarter ton trucks was published in The Record on Saturday, December 9, 2017, and Sunday, December 10, 2017, respectively. At the same time, the notice went out to 19 area vendors, including Big Valley Ford, Chase Chevrolet, and Stockton Dodge. A notification was also e-mailed through ASK Stockton to 2,555 recipients.
On December 28, 2017, three bids were received with the following results:
|
COMPANY NAME |
BID AMOUNT |
ADJUSTED BID AMOUNT (local preference applied) |
|
Chase Chevrolet, Stockton, CA |
$208,257.82 |
$197,844.93 |
|
Maita Chevrolet, Elk Grove, CA |
$199,891.26 |
$199,891.26 |
|
Courtesy Chevrolet, San Diego, CA |
$202,465.56 |
$202,465.56 |
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. After application of the Local Vendor Preference of five percent, Chase Chevrolet, of Stockton, CA, is the low bidder.
The bid from Chase Chevrolet meets the bid specifications; however, it has a bid irregularity from multiple rounding errors (Attachment A). The rounding errors are minor, insubstantial, and do not provide an unfair advantage over the other bidders. It is recommended that Council approve a motion authorizing the purchase of eight one-quarter ton trucks from Chase Chevrolet in the amount of $208,257.82. Once the Council approves a motion, staff will prepare a purchase order pursuant to information provided by Chase Chevrolet in Attachment A. The vehicles being replaced will be sold at auction.
FINANCIAL SUMMARY
There are sufficient funds available in the accounts listed below for the purchase of eight new one-quarter ton trucks.
|
TRUCK QUANTITY AND TYPE |
DEPARTMENT AND ACCOUNT NAME |
ACCOUNT NUMBER |
AMOUNT |
|
1 - crew cab 4X2 |
Public Works - Fleet ISF |
501-5060-670 |
$ 26,551.34 |
|
3 - extended cab 4X2 |
Public Works - Fleet ISF |
501-5060-670 |
$ 76,115.88 |
|
1 - extended cab 4X4 |
Public Works - Fleet ISF |
501-5060-670 |
$ 29,474.72 |
|
3 - extended cab 4X2 |
MUD - Capital Outlay/Vehicle Acquisition |
421-4231-606, 421-4235-606, 431-4312-606 |
$ 25,371.96, $ 25,371.96, $ 25,371.96 |
|
TOTAL |
|
|
$208,257.82 |
Below is the purchase breakdown of eight new one-quarter ton trucks from Chase Chevrolet:
Unit Price Total $190,358.00
DMV Document Fee $ 640.00
9.00% Sales Tax $ 17,189.82
CA Tire Fee $ 70.00
TOTAL PURCHASE PRICE $208,257.82
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 - Chase Chevrolet Bid
Attachment B - Vehicle Replacement List