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REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JULY 5, 2005
CLERK OF COUNCIL USE ONLY:
TITLE:
CONTRACT AWARD FOR
CITY VEHICLES
(SPEC. NO. 05-074)
APPROVED
i:I As Recommended
i:I As Amended
i:I Ordinance on 1 st Reading
i:I Ordinance on 2nd Reading
i:I Implementing Resolution
i:I Set Public Hearing For
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CITY MANAGER
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
1. Reject the bids from Bob Stall Chevrolet, Maurice J. Sopp and Son
and Wondries Fleet Group as nonresponsive to the specification.
2, Award a contract to Guaranty Chevrolet for the purchase of two
vehicles in the amount of $66,432,17; and an additional $10,000 on
the annual blanket contract.
DISCUSSION
The Fleet Maintenance Division's annual Equipment Replacement Program
is included in the City's annual budget, and identifies vehicles
scheduled for replacement. Funding is monitored through a depreciation
schedule established with each department. Due to age and condition,
one 1995 Ford Sedan has been approved for replacement. The replacement
vehicle will be used by the City Manager for transporting personnel to
City project sites. The second vehicle will be equipment with emergency
lights and assigned to the Fire Chief.
Through July 5, 2005, General Motor Corporation is offering a special
vehicle sales program which provides a 23 percent discount off the
price list resulting in a savings of over $9,000 per vehicle. As a
result of this special vehicle offer, the City has processed a standard
formal bid that opened July 1, 2005 for two standard package Chevrolet
Tahoes,
22K
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Contract Award for City Vehicles
(Spec. No. 05-074)
July 5, 2005
Page 2
The notice inviting bids was advertised on June 21-22, 2005, and bids
were solicited. A summary of the bid invitations and bids received is
as follows:
9 Invitations For Bid mailed
1 Invitation For Bid mailed to a Santa Ana vendor
5 Bids received
1 Bid received from a Santa Ana vendor
Bids were received, opened on July 1, 2005 and evaluated (Exhibit 1).
The bid from Bob Stall Chevrolet lacked vehicles with side air bags.
The bid from Maurice J. Sopp only quoted on one vehicle. The bid from
Wondries Fleet Groups offered a 2004 vehicle. All three bids are
nonresponsi ve to the specifications. The bid from Guaranty Chevrolet,
a Santa Ana vendor, is responsive to the specifications and meets the
City's requirements.
In addi tion, the City annually establishes blanket order contracts of
up to $10,000 with various vendors on a fiscal year basis. The
contracts facilitate purchases that are required on a recurring basis
and reduce the number of small value orders. However, the purchase of
the Chevrolet Tahoe vehicles, when added to the vendor's fiscal
purchases, exceeds the $10,000 aggregate total, and requires Council
approval. In order for Fleet Maintenance to continue using Guaranty
Chevrolet, staff recommends Council approval of a blanket order
contract.
FISCAL IMPACT
Funds are available
Machinery & Equipment
Fire Chief Machinery &
in the Fleet
account (account
Equipment account
Services Equipment Replacement
no. 76-145-6641) and Office of
(account no. 011-320-6641).
-i~\.-~ G...\~'~
Francisco Gutlerrez
Executive Director
Finance & Management Services Agenc~
PMG/KM/05-074,2:sp
22K
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ABSTRACT OF BIDS
CONTRACT AWARD
CITY VEHICLES
(SPEC, 05-074)
Vendor
Location
Terms
Vehicles
2WD Tahoe
4WD Tahoe
Sub-total
Sales Tax
Tire Fee
Total
1% S ,A, VENDOR
GRAND TOTAL
GUARANTY
CHEVROLET
QUALITY
CHEVROLET
SANTA ANA
ESCONDIDO
NET 30
NET 30
$29,421. 73
$31,748,50
$61,170,23
$ 5,244,44
17,50
$66,432,17
$29,346,00
$31,714,00
$61,060,00
$ 4,732,15
17,50
$65,809,65
664,32)
$65,767,85
$65,809,65
Vehicle Purchase
Blanket Contract
CONTRACT TOTAL
DELIVERY
Vehicle
$66,432,17
$10,000,00
$76,432,17
7 Days
2005 Tahoe
7 Days
2005 Tahoe
SUMMARY OF BID AWARD:
TOTAL AWARD IN THE AMOUNT OF:
Guaranty Chevrolet
$76,432,17
Bids from Bob Stall Chevrolet, Maurice J. Sapp and Son and Wondries Fleet Group are
considered nonresponsive.
EXHIBIT 1
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