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APPROVE PURCHASE OF 15 NEW TRUCKS FROM BIG VALLEY FORD (PUR 18-001)
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Purchase 15 new trucks from Big Valley Ford, of Stockton, CA, in the amount of $808,100.75; and
2. Authorize the City Manager 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 the Municipal Utilities Department (MUD) Capital Outlay accounts include funding to replace 14 trucks utilized by the Municipal Utilities Department and Public Works staff. The Fire Department Capital Outlay account includes funding to add one truck to be utilized by Fire Department staff.
On March 1, 2018, the City requested bids for the purchase of 15 new trucks. On March 22, 2018, two bids were received, with Big Valley Ford submitting the lowest bid. The recommended motion authorizes the purchase of 15 trucks from Big Valley Ford at a total cost of $808,100.75 (Attachment A).
DISCUSSION
Background
The FY 2017-18 replacement budget for the Fleet ISF and the MUD Capital Outlay accounts include funding to replace 14 trucks utilized by the Municipal Utilities Department and Public Works staff. The trucks range from ½-ton pickups to heavy duty (over 1 ton) trucks. The Fire Department Capital Outlay account includes funding to purchase one ¾-ton pickup truck that will be an addition to the fleet.
The City’s replacement criteria for 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. 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 14 vehicles from these departments in service that exceed the age and/or mileage criteria, or 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 vehicle manufacturers could bid.
Present Situation
A Notice Inviting Bids for the purchase of 15 new trucks was published in The Record on Saturday, March 3, 2018, and Sunday, March 4, 2018, respectively. At the same time, the notice went out to 20 local 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 March 22, 2018, bids were received from Big Valley Ford, of Stockton, CA, and Reynolds Buick/GMC, of Covina, CA. Big Valley Ford submitted a bid for all 15 items and Reynolds Buick/GMC declined to bid on the two Heavy Duty Aerial Service Body trucks. Of the 13 units that both vendors bid on, Big Valley Ford submitted pricing that was lower in each case (Attachment C).
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. Application of the Local Vendor Preference of five percent did not change the bid order.
The bid from Big Valley Ford meets the bid specifications; however, it has an irregularity from a rounding error in the amount of $0.01 (Attachment A). The rounding error is minor and does not provide an unfair advantage over the other bidder. It is recommended that Council approve a motion authorizing the purchase of 15 trucks from Big Valley Ford in the amount of $808,100.75. The 14 vehicles being replaced will be sold at auction.
FINANCIAL SUMMARY
There are sufficient funds available in the Public Works Fleet ISF, MUD Capital Outlay accounts, and Fire Department Capital Outlay account for the purchase of 15 new trucks. Below is a purchase breakdown of 15 new trucks with corresponding account numbers:
Department # Vehicles Account Number Subtotal
Public Works 7 501-5060-670 $469,018.95
Municipal Utilities 7 431-4333-606 $ 54,486.95
431-4331-606 $ 45,941.35
421-4231-606 $148,493.00
421-4335-606 $ 45,941.35
Fire 1 010-2620-603 $ 44,219.15
Below is the purchase breakdown of 15 new trucks from Big Valley Ford:
Total Unit Price $740,050.00
Total DMV Document Fee $ 1,200.00
Total 9% Sales Tax $ 66,712.50
Total CA Tire Fee $ 138.25
TOTAL PURCHASE PRICE $808,100.75
Attachment A - Bid from Big Valley Ford
Attachment B - Vehicle Replacement List
Attachment C - Bid Abstract