TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve Charelian, Finance Director
Julie Bondarchuk, Financial Controller
Mario Hernandez, Purchasing Supervisor
SUBJECT:Title
Consideration of an Alternative Purchasing Process for the Acquisition of Budgeted Vehicles and Related Equipment for Fiscal Year (FY) 2023-2024 (Finance Director Charelian).
A) WAIVE FORMAL BIDDING FOR BUDGETED VEHICLES AND EQUIPMENT
B) AUTHORIZE CITY MANAGER TO APPROVE PURCHASE OF BUDGETED VEHICLES AND EQUIPMENT
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that the City Council take the following actions:
a) Waive formal bidding per Manhattan Beach Municipal Code Section 2.36.140 for Budgeted Vehicles and Equipment for FY 2023-2024.
b) Authorize City Manager to approve purchase of budgeted vehicles and related equipment for FY 2023-2024.
c) Body
FISCAL IMPLICATIONS:
The recommended action has no fiscal implication.
BACKGROUND:
Funds have been allocated for the purchase of fourteen new vehicles in the Fiscal Year 2023-2024 Budget. Eleven of these vehicles are budgeted over $50,000, which means staff must adhere to a formal bidding process to acquire these vehicles. The duration of the purchasing process can vary while the average formal bidding process for vehicles takes about eight weeks. With current demand outpacing supply, it has been difficult for staff to procure vehicles to be delivered within a reasonable time frame. About 95% of the bids received for vehicles or equipment are from vendors who do not have the item in stock. The bids are often for a future delivery with the item either in transit or with a future build date. It is rare for vendors who have the vehicle on hand to bid due to the long formal bidding process.
For vendors who do have the item in stock, they are not able to offer longer-term pricing on goods due to price fluctuations making a forma...
Click here for full text