TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Interim Finance Director
Gwen Eng, Purchasing Manager
Mike Grafton, Equipment Maintenance Supervisor
SUBJECT:Title
Award of Bid #1174-19 to Courtesy Chevrolet for the Purchase of Two Budgeted Vehicles for the Public Works Department in the Amount of $66,326.88 (Interim Finance Director Charelian).
APPROVE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council award Bid #1174-19 to Courtesy Chevrolet for the purchase of two budgeted vehicles (Colorado and Bolt) for the Public Works Department in the amount of $66,326.88.
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FISCAL IMPLICATIONS:
Funds totaling $63,175 are budgeted in the Fiscal Year 2018-2019 Fleet Management Fund for the purchase of these vehicles. The shortfall of $3,151.88 will come from the remaining budgeted Fleet Management funds but will be partially offset by a rebate of $2,500 from the Clean Vehicle Rebate program.
BACKGROUND:
The Fiscal Year 2018-2019 budget includes funding for the purchase of 11 vehicles in the City’s fleet in order to maintain service levels, reduce repair costs and provide for cost-effective fleet operations.
DISCUSSION:
The budgeted truck (Colorado) is a replacement for the Urban Forester in the Public Works Department. The truck being replaced is over 13 years old with 46,000 miles and has reached the end of useful serviceability for the department’s purposes. This vehicle is experiencing transmission and suspension problems and will require approximately $5,000 in repairs in the near future. In addition, this vehicle is no longer being manufactured; therefore, the acquisition of parts will become an issue in the next few years. Although staff can continue maintaining this vehicle for a longer period of time, it would not be cost beneficial to the City. In the last year, $1,600 was spent on this vehicle’s maintenance; whereas, a similar vehicle’s average was $300. Considering these factors, Public Works staff is recommending this vehicle be replaced.
The budgeted vehicle (Bolt) is also for the Public Works Department - Engineering Division. This is an approved addition to the fleet due to an increase in staffing previously approved by the City Council. This vehicle will be used by the engineers for driving from site-to-site in the performance of their duties and has sufficient storage to accommodate all of the necessary equipment utilized by staff. The selection of the budgeted vehicles 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 three bid responses were received for these vehicles. The bid comparison (Attachment 1) lists the aggregate price including sales tax, fees and payment discounts (the lowest bid is indicated in bold font). Although, Reynolds Buick/GMC offered the lowest bid on the truck, it doesn’t meet specifications.
Based on these bids, staff recommends that the City Council award Bid #1174-19 to the lowest responsive bidder, Courtesy Chevrolet, for the purchase of one Chevrolet Colorado and one Bolt ($66,326.88). If this purchase is approved, the existing vehicle will be declared surplus and sent to auction for the highest attainable value. The new vehicles will arrive in approximately 3-6 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 #1174-19 Comparison for Chevrolet Vehicles (2)