title
APPROVE PURCHASE OF FOUR NEW HYBRID SEDANS FROM BIG VALLEY FORD (PUR 17-043)
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to approve the purchase of four new Ford Fusion hybrid sedans from Big Valley Ford, of Stockton, CA, in the amount of $101,971.80.
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.
body
Summary
The Fiscal Year (FY) 2017-18 replacement budget for the Fleet Internal Service Fund (ISF) includes funding to replace four sedans utilized by the City Manager’s Office and Public Works staff.
On December 7, 2017, the City requested bids for the purchase of five new hybrid sedans. During the bid process City requirements changed, a written notice was posted to Bid Flash on December 7, 2017, reducing the bid quantity to four units.
On December 28, 2017, four bids were received, with Big Valley Ford submitting the lowest bid. The recommended motion authorizes the purchase of four hybrid sedans from Big Valley Ford at a total cost of $101,971.80 (Attachment A).
DISCUSSION
Background
The FY 2017-18 replacement budget for the Fleet ISF includes funding for four hybrid sedans. Three of these units are assigned to the City Manager’s Office for use by Peacekeepers staff, and one unit is assigned to the Public Works Department as a Fleet pool vehicle.
The City’s replacement criteria for sedans, 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. The replacement standard 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 identified five 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 specification was generic and designed such that any of the major vehicle manufacturers could bid.
Present Situation
A Notice Inviting Bids for the purchase of hybrid sedans 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.
The original bid request was for five units. After the bid documents were submitted for publishing, Fire Department staff requested one sedan be replaced with a ¼ ton truck to better meet operational needs. A written notice was posted to Bid Flash reducing the bid quantity to four units. Big Valley Ford of Stockton, CA had already submitted a bid based on five units. The extended bid price was adjusted to reflect the correct number of units (four). Big Valley Ford has acknowledged and agreed to this adjustment in Attachment A, and the unit price is unchanged.
On December 28, 2017, four bids were received with the following results:
VENDOR NAME PER UNIT ADJUSTED BID AMOUNT
BID AMOUNT (local preference applied)
US Fleet Source, Covina, CA $25,021.41 N/A
Maita Chevrolet, Elk Grove, CA $28,267.46 N/A
Big Valley Ford, Stockton, CA $25,492.95 $24,218.30
Chase Chevrolet, Stockton, CA $35,811.75 $34,021.16
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, Big Valley Ford, of Stockton, CA, is the lowest responsive bidder.
The bid from 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 four hybrid sedans from Big Valley Ford in the amount of $101,971.80. 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 four new hybrid sedans.
Below is the purchase breakdown of four new hybrid sedans from Big Valley Ford:
Unit Price Total $ 93,200.00
DMV Document Fee $ 320.00
9% Sales Tax $ 8,416.80
CA Tire Fee $ 35.00
TOTAL PURCHASE PRICE $101,971.80
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 - Big Valley Ford Bid
Attachment B - Vehicle Replacement List