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APPROVE PURCHASE OF FIVE NEW VANS (PUR 17-041)
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion authorizing the purchase of five new vans including:
• Three from Big Valley Ford of Stockton, CA, in the amount of $74,084.12;
• One from Chase Chevrolet of Stockton, CA, in the amount of $29,075.78; and
• One from Maita Chevrolet of Elk Grove, CA, in the amount of $32,582.75.
The total purchase price for all five vans is $135,742.65.
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) includes funding to replace five vans utilized by the Police Department, Library Services, and Public Works’ staff.
On December 7, 2017, the City requested bids for the purchase of five new vans. On December 28, 2017, three bids were received. The recommended motion authorizes the purchase of three vans from Big Valley Ford, one van from Chase Chevrolet, and one van from Maita Chevrolet at a total cost of $135,742.65 (Attachment A).
DISCUSSION
Background
The FY 2017-18 replacement budget for the Fleet ISF includes funding to replace five vans utilized by the Police Department, Library Services, and Public Works’ staff. The City’s replacement criteria for vans, 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. A standard replacement cycle 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 in service from various departments that exceed the age and/or mileage criteria, and have recurring mechanical or operational problems (Attachment B). Therefore, 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. Each van has unique operational needs requiring different configurations and were bid as separate items. The specifications for each separate item were generic and designed such that any of the major vehicle manufacturers could bid.
Present Situation
A Notice Inviting Bids for the purchase of various vans 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 local area vendors, including Chase Chevrolet, Big Valley Ford, and Stockton Dodge. A notification was also e-mailed through ASK Stockton to 2,555 recipients. The results of the bid from December 28, 2017, are detailed in Attachment A and each bid is attached as Attachments C-E.
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.
Three bids were received. Only one bidder submitted a price for all five items. Section 1.19 of the bid document states:
The City reserves the right to make an award on any item, quantity of any item, group of items, or in the aggregate to that/those bidder(s) whose bid(s) is/are most responsive to the needs of the City. Further, the City reserves the right to reject any and all bids, or alternate bids, or waive any informality in the bid as is in the City's best interest.
The lowest cost alternative is to separate the bids to purchase the units at the lowest price per individual item. The Fleet Manager has determined that the combined proposal meets the bid specifications and is regular in all respects. It is recommended that Council approve a motion authorizing the purchase of three vans from Big Valley Ford, one van from Chase Chevrolet, and one van from Maita Chevrolet at a total cost of $135,742.65. Bid details and recommended suppliers for each item are shown on Attachment A. 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 five new vans for a total purchase price of $135,742.65 as shown below.
• 1 - small cargo van (Police Department) Item A, Big Valley Ford, $26,783.51
• 1 - small cargo van (Library Services) Item B, Big Valley Ford, $24,335.37
• 1 - one ton cargo van (Public Works) Item C, Chase Chevrolet, $29,075.78
• 1 - ½ ton cargo van (Library Services) Item D, Big Valley Ford, $22,965.24
• 1 - full size passenger van (Public Works) Item E, Maita Chevrolet, $32,582.75
Purchase breakdown of five new vans:
• Total Unit Price $124,145.40
• Total DMV Document Fee $ 349.00
• Total 9.00% Sales Tax $ 11,204.50
• Total CA Tire Fee $ 43.75
TOTAL PURCHASE PRICE $135,742.65
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 - Bid Details
Attachment B - Vehicle Replacement List
Attachment C - Big Valley Ford Bid
Attachment D - Chase Chevrolet Bid
Attachment E - Maita Chevrolet Bid