TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, Interim City Manager
FROM:
Steve S. Charelian, Acting Finance Director
Gwen Eng, Purchasing Manager
Mike Grafton, Equipment Maintenance Supervisor
SUBJECT:Title
Award of Bid #1147-18 to Wondries Fleet Group for the Purchase of Three Budgeted Replacement Electric Cars for the Community Development Department in the Amount of $105,967.50; Supplemental Appropriation of $105,967.50 from the Motor Vehicle Registration Fee Subvention Fund (Acting Finance Director Charelian).
APPROVE AND APPROPRIATE FUNDS
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that the City Council award Bid #1147-18 to Wondries Fleet Group for the purchase of three budgeted replacement cars (Chevrolet Bolt) in the amount of $105,967.50 and approve a supplemental appropriation of $105,967.50 from AB 2766 Motor Vehicle Subvention Funds for this purchase.
Body
FISCAL IMPLICATIONS:
Although funds totaling $133,328 are budgeted in the fiscal year (FY) 2017-2018 Fleet Management Fund for the purchase and equipping of these vehicles. There are sufficient funds in the AB 2766 Subvention Fund balance for this purchase.
BACKGROUND:
The fiscal year (FY) 2017-2018 budget includes funding for the replacement of 15 vehicles in the City’s fleet that need to be replaced in order to maintain service levels, reduce repair costs and provide for cost-effective fleet operations.
DISCUSSION:
This purchase is for three replacement vehicles for the Community Development Department. The vehicles being replaced are over 10 years old with mileage ranging from 23,000 to 40,000, and have reached the end of useful serviceability for the department’s purposes.
Replacement of vehicles is based on several factors including age, reliability and maintenance/repair costs. Two of these are hybrid vehicles requiring battery replacement in the near future and the estimate is between $8,000 and $10,000 per vehicle. In addition, all of these vehicles are no longer being manufactured and acquisition of parts may become an issue in the next few years. Considering these factors, Public Works staff is recommending these vehicles be replaced.
These vehicles are used by the Building Division’s inspectors for driving from site-to-site in the performance of their duties and have sufficient storage to accommodate all of the necessary equipment utilized by the inspectors. The selection of the replacement vehicle has been approved by the using department and the City’s Equipment Maintenance Supervisor.
The Request for Bids was posted on the City’s website, as well as BidSync, a public bid notification board. A total of four bid responses were received for these electric cars. 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 #1147-18 to the lowest bidder, Wondries Fleet Group, for the purchase of three Chevrolet Bolts ($105,967.50).
If this purchase is approved, the existing vehicles will be declared surplus and sent to auction for the highest attainable value. The new vehicles will arrive in approximately 3 months.
PUBLIC OUTREACH/INTEREST:
This bid was advertised on the City’s website as well as BidSync, 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 the 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 #1147-18 Comparison for Vehicles (3)