TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Julie Bondarchuk, Acting Finance Director
Sean Roberts, Field Operations Manager
Mario Hernandez, Purchasing Supervisor
SUBJECT:Title
Consideration of Awarding Bid No. 1309-23 to South Bay Ford for the Purchase of One Ford F-550 Truck Chassis for the Public Works Department in the Amount of $84,287.80 and Appropriate $115,000 from the Fleet Management Fund (Acting Finance Director Bondarchuk).
A) APPROVE
B) APPROPRIATE FUNDS
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
A) Award Bid No. 1309-23 to Fairway Ford for the purchase of one Ford F-550 truck chassis for the Public Works Department in the amount of $84,287.80; and
B) Appropriate $115,000 from the Fleet Management Fund.
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FISCAL IMPLICATIONS:
The estimated cost for the purchase and installation of an existing aerial lift onto a new Ford F-550 truck is $115,000. The expected cost for the chassis purchase from South Bay Ford is $84,287.80 and an estimated $30,712.20 is required for outfitting the vehicle. An appropriation of $115,000 from the unreserved Fleet Maintenance Fund balance is required to complete the purchase and installation. As the purchase and installation are related to damages to the vehicle covered by the City’s insurance policy, a reimbursement request will be submitted to the City’s Insurer after the installation is complete. Staff anticipates recouping the market value of the damaged chassis along with the cost of outfitting the new vehicle, less the policy’s $10,000 deductible.
BACKGROUND:
On August 18, 2022, the aerial truck caught on fire along the driver side engine area of the vehicle while in use. Public Works aerial lift trucks consist of two main parts: the truck chassis cab and the aerial lift truck equipment. This fire damaged the truck chassis cab, but did not affect the aerial lift truck equipment.
The truck was returned to the Public Works Yard for further evaluation and was determined to be non-repairable. However, the aerial lift portion of the truck was deemed to be in working order and will be able to be transferred to a new truck chassis cab for continued use. As the aerial lift equipment is functional, staff recommends installing it on a new F-550 chassis cab.
DISCUSSION:
This purchase is for one replacement vehicle for the Public Works Department. The vehicle proposed to be replaced is two years old, with less than 400 miles, and has a chassis that has been declared a “total loss” due to the fire damage sustained. The Water, Streets, and Facilities Sections of the Public Works Department utilize this vehicle. The selection of the replacement vehicle has been approved by the City’s Equipment Maintenance Supervisor.
On February 7, 2023, the Council approved the purchase of an F-550 chassis from Fairway Ford. Fairway Ford has notified us that the window to order this vehicle will open on January 2024, and the manufacture lead time is nine to eleven months. This would mean the vehicle would not be received until September - November 2024. As a proactive measure to receive the vehicle sooner, this vehicle was re-bid in an effort to find any of them that are in stock or in transit. South Bay Ford has one in stock; therefore, this approval will cancel the existing purchase order to Fairway Ford, and a new purchase order will be issued to South Bay Ford.
The Request for Bids was posted on the City’s website, as well as OpenGov, a public bid notification board. A total of two bid responses were received for this vehicle. The bid comparison (Attachment 1) lists the aggregate price, including sales tax, fees and payment discounts (the lowest bid is indicated in bold font).
Based on these bids, staff recommends that the City Council award Bid No. 1309-23 to the most responsive bidder, South Bay Ford, for the purchase of one Ford F-550 truck chassis in the amount of $84,287.80. While, South Bay Ford was not the lowest bidder, the other vendor sold the bided vehicle to another entity so it was no longer available. If this purchase is approved, the existing vehicle will be declared surplus and sent to auction for the highest attainable value. The new vehicle is in stock and will be received as soon as a purchase order is issued.
PUBLIC OUTREACH:
This bid was advertised on the City’s website, as well as OpenGov, a public bid notification board.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENT:
1. Bid No. 1309-23 Comparison