Item 5 - Auth. to Purchase 4 Mid-Size Pick-ups and 3 Full-Size Pickups by Informal BidDATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA REPORT City of Poway
CITY COUNCIL
August 4, 2020
Honorable Mayor and Members of the City Council
Eric Heidemann, Director of Public Works { �
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Will Wiley, Assistant Director of Public Works for Maintenance Operation
(858) 668-4705 or wwiley@poway.org
Authorization to Purchase Four (4) Mid-Size Pickups and Three (3) Full-Size
Pickups by Informal Bid
The City's approved Fiscal Year 2020-21 Capital Replacement Budget includes funding to purchase
four (4) mid-size and three (3) full-size pickups. Utilizing an informal competitive bid process, the City
requested quotes for four (4) mid-size pickups and three (3) full-size pickups from two (2) state-wide
cooperative contracts through the State of California Department of General Services and pricing from
local dealers. For optimal pricing, it is recommended the purchase of the above-mentioned vehicles
be made from Courtesy Chevrolet San Diego by waiving the City's formal bidding procedures and
awarding the purchase of the vehicles through an informal bid process to Courtesy Chevrolet San
Diego. The total estimated purchase price for these vehicles, upfits, sales tax, tire tax, and
documentation fees is $221,831.53.
Recommended Action:
It is recommended that City Council authorize the purchase of four (4) mid-size and three (3) full-size
pickups from Courtesy Chevrolet San Diego through an informal bid process for a total estimated cost
of $221,831.53 and authorize the City Manager to execute any necessary documents.
Discussion:
The City maintains over 125 street legal vehicles for the purpose of inspecting, maintaining and
operating City facilities, and infrastructure. Annually, several of these vehicles must be replaced as
they have met their useful life or have excessive mileage. The current budget contains funding to
replace seven (7) pickups. Five of the seven vehicles are being replaced as part of the City's capital
replacement program and two vehicles are being added to the City's fleet to support two new
positions in the Water Utilities Divisions.
The City's purchasing regulations require that product (e.g., trucks) purchases over $50,000 require a
formal bidding process. Recently, the City has not had success with vehicle purchases, when the City
1 of 3 August 4, 2020, Item #5
August 4, 2020, Item #5has undertaken a formal bidding process, because vendors are not providing proposals due to limited staff in their sales department or they cannot meet the City's vehicle specifications. In an effort to maximize cost savings, the City's Fleet Division evaluates various procurement methods that offer competitive pricing, including utilizing regional and state cooperative purchase contracts. Cooperative purchasing enables City departments to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing programs by public entities (e.g. state, city, county, public university or school district) provide a streamlined and effective procurement option by offering lower costs through volume buying. The City has used both regional and state cooperative purchase contracts to complement its own contracting initiatives and is authorized under Section 3.28.11 O of the Poway Municipal Code, as long as the administering agency has made their purchase in a competitive manner. The City recognizes that there is a regional benefit whenever it can do business with local dealers. As a matter of due diligence, staff approached local dealers to confirm membership status with cooperative contracts or bid assistance programs and solicited informal bids from them. Neither local dealer is a part of a cooperative state or bid assistance program. Perry Ford of Poway, was non-responsive to our bid request and Poway RAM, indicated they had insufficient staff to provide a bid. Consequently, no quotes were provided. In addition to reviewing pricing from cooperative purchase contracts; the City also obtained an informal quote from Courtesy Chevrolet San Diego, which participates in General Motor's (GM's) Bid Assistance Program. Through GM's Bid Assistance Program, Courtesy Chevrolet San Diego is able to provide pricing for vehicle purchases through a streamlined procurement option for municipalities. Of the seven (7) vehicles identified for purchase, Courtesy Chevrolet San Diego is able to provide an overall lower cost compared to the State's cooperative purchasing contracts. As such, staff is requesting authorization of a purchase order to Courtesy Chevrolet San Diego for the seven (7) identified vehicles for an estimated total cost of $221,831.53. The quotes for four (4) mid-size and three (3) full-size pickups are as follows: Company Cost Rank Courtesy Chevrolet $221,831 .53 1 San Diego (GM's Bid Assistance Program) Elk Grove/Winner Chevrolet $235,080.79 2 State Contract: 1-18-23-20D Downtown Ford Sales $240,853.89 3 State Contract: 1-18-23-20A Poway RAM No Quotes Submitted N/A Perry Ford of Poway No Quotes Submitted N/A Bob Stall Chevrolet No Quotes Submitted N/A After careful evaluation of various purchasing options and pricing, staff determined that it is in the best interest of the City not to proceed with its own formal bid process or utilize the bid process of a cooperative contract, and as such, recommends the formal bidding procedures are waived for the following reasons: 1. The informal bid from Courtesy Chevrolet San Diego for the seven vehicles is less than the state cooperative purchasing contracts which itself was publicly bid; 2. The requirement of Poway Municipal Code Chapter 3.28 that the vehicle purchase be formally bid will tie up staff resources from other projects and will not likely result in a lower price for these vehicles provided the city's historical experience; and 2 of 3
August 4, 2020, Item #53. The purchasing of the seven (7) vehicles from Courtesy Chevrolet San Diego will save Poway residents tax dollars on this purchase. It is anticipated that it will take approximately three to five months for the City to take delivery of the vehicles. Upon receipt of the vehicles, staff will complete all necessary steps to get the vehicles into use, including proper registration and insurance as well as any necessary insignia, lights or additional accessories. Environmental Review: This action is not subject to California Environmental Quality Act review. Fiscal Impact: Sufficient funding is available in the Fiscal Year 2020-21 Capital Replacement Equipment Fund (115010-61040) for the purchase of four (4) mid-size and one (1) full-size pickups and in the Water Transmission/Distribution budget (402560-45600 and 402560-61040) for the purchase of two (2) full-size pickups. The total cost of these seven (7) pickups is $221,831.53. Public Notification: None. Attachments: None. Reviewed/ Approved By: W~nd aserman Assistant City Manager 3 of3 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager