TO:
Honorable Mayor and Members of the City Council
THROUGH:
John Jalili, Interim City Manager
FROM:
Bruce Moe, Finance Director
Gwen Eng, Purchasing Manager
SUBJECT:Title
Award of Bid for the Budgeted Purchase of Three Replacement Vehicles: Two Toyota Tacoma 4x2 Pickup Trucks for the Public Works Department, and One Toyota Tacoma 4x4 Pickup Truck for the Parks and Recreation Department, from Penske Toyota in the Amount of $92,023.54 (Finance Director Moe).
APPROVE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council award Bid #959-14 to Penske Toyota for the purchase of three Toyota Tacoma trucks in the amount of $92,023.54.
Body
FISCAL IMPLICATIONS:
Funds totaling $107,075 are budgeted in the Fiscal Year 2013-2014 Fleet Management Fund for the purchase and equipping of these vehicles. The vehicles cost $92,023.54; the remaining budgeted funds of $15,051.46 will be used to procure a utility body, electronics and any other standard equipment necessary for these vehicles. The total cost is projected to be within the budgeted amount.
BACKGROUND:
The FY 2013-2014 budget includes the replacement of 44 vehicles in the City's fleet that need to be purchased in order to maintain service levels, reduce repair costs and provide for cost-effective fleet operations. The list represents "catch-up" years when the fleet was not actively replaced due to budget constraints.
DISCUSSION:
The budgeted replacement vehicles recommended for purchase include: one Toyota Tacoma 4x4 for the Parks and Recreation Department (Sports Division), replacing a Nissan Frontier 4x4; one Toyota Tacoma 4x2 for the Public Works Department (Parking meter collections truck), replacing a Ford Ranger; and one Toyota Tacoma 4x2 for the Public Works Department (Sewer Division), replacing a Honda Civic sedan. The Honda sedan had limited capacity in meeting the Division's requirements such as housing tools for day-to-day operations and emergency equipment for spills. Therefore, it was determined that a truck was better suited for these tasks. In addition, a truck could also be used as a backup standby unit for on-call personnel. The selection of these vehicles has been approved by the using departments and the City's fleet manager.
A total of five bid responses were received. The bid comparison (Attachment 1) shows the aggregate price, including sales tax (the 1% local sales tax return to the City has been applied to the Manhattan Beach Toyota bid) and fees (the lowest bid is indicated in bold font). Based on these bids, staff recommends that the City Council award Bid #959-14 to the lowest responsible bidder, Penske Toyota, for three Toyota Tacoma trucks in the amount of $92,023.54.
If this purchase is approved, the existing units will be retired and sent to auction. The auction amount will be determined by vehicle and market conditions. The new vehicles will arrive in approximately 2-3 months.
CONCLUSION:
Staff recommends that the City Council award Bid #959-14 to Penske Toyota for the purchase of three Toyota Tacoma trucks in the amount of $92,023.54.
Attachment:
1. Bid #959-14 Comparison for Toyota Tacoma (3)