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HomeMy WebLinkAbout22B - SPEC - TAHOE SUVREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 20, 2016 TITLE: CONTRACT AWARD TO GUARANTY CHEVROLET MOTORS, INC., A SANTA ANA VENDOR, FOR ONE CHEVY TAHOE SUV (SPEC. NO. 16-135) {STRATEGIC PLAN NO. 6,2) (SURPLUS ALLOCATION FUNDING) L c CITY MANAGEK RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: TWUMSAWC ❑ As Recommended ❑ As Amended ❑ Ordinance on 10' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize a one-time purchase and payment of purchase order to Guaranty Chevrolet Motors, Inc. for the purchase of one Chevy Tahoe SUV in an amount not to exceed $48,435 plus a contingency of $2,420 for a total amount of $50,855, subject to non -substantive changes approved by the City Manager and City Attorney. Project in accordance with the Council approved Surplus Allocation Plan as of October 20, 2015. Department: Project: Category Total Funding: Finance and Management Services Agency Vehicle Replacement Facilities/Assets $1,300,000 DISCUSSION The Finance and Management Services Agency, Facilities, Fleet Maintenance and Central Stores Division is responsible for the acquisition, maintenance, repair, and replacement of vehicles, trucks, and maintenance equipment. The City's Vehicle Replacement Policy provides guidelines and criteria for determining when vehicles need replacement. This criteria includes vehicle age, mileage, maintenance costs, and safety history. As a result of reviewing the City's replacement criteria, one Utility SUV purchased in 1999 with 83,000 miles has been identified for replacement. For vans, sport utility vehicles, sedans and light trucks, the City has standardized on purchasing Chevrolet vehicles. Of the seven auto dealerships identified within the City of Santa Ana, the City has one Chevrolet dealership. In order to ensure awareness as to the City's pending bids as well as the City bid process, Fleet staff have communicated and met with the local dealership on numerous occasions. As a result we are able to include our local Chevrolet dealership in all Invitation for Bid processes. As part of the City Council approved Local Preference Program, all local vendors for such purchases receive a one percent preference when evaluating their total bid. The local vendor has been successful on 80 percent on the City's past five bids for Chevrolet vehicles. 2213-1 Contract Award for a Chevy Tahoe SUV December 20, 2016 Page 2 The notice inviting bids was advertised on October 26, 2016, on the City's online bid management and publication system. A summary of the bid invitations and bids received is as follows: 58 Vendors were notified 6 Vendors downloaded the bid packet 2 Bids received 1 Bid received from a Santa Ana vendor The bids were opened on November 22, 2016 and evaluated (Exhibit 1). The bid received from Guaranty Chevrolet, a Santa Ana vendor, is responsive to the specifications and meets the City's requirements. To allow for unanticipated charges, a five percent contingency has been included in the award amount. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Strategic Plan Goal #6 — Community Facilities & Infrastructure, Objective #2 (address deferred maintenance on City buildings and equipment). FISCAL IMPACT Funds are available in FY 2016-17 as follows: $40,000 in the Council Special Projects - Finance Fleet Maintenance account (05010022-66400) and $10,855 in the Equipment Replacement account (07010100-66400). APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance and Management Services Agency CL/sp EXHIBIT: 1. Abstract of Bids 228-2 ABSTRACT OF BIDS CHEVY TAHOE SUV (16-135) Location Terms Delivery Actual Cost 1 % vendor preference Guaranty Chevrolet Motors, Inc. Santa Ana Net 30 Not provided $48,432.52 $484.32 $47,948.20 * EXHIBIT 1 22B-3 Reynolds Buick, Inc. Covina 2% 30 days 60 - 90 days $49,655.69 22B-4