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Item 1.5 - Auth. to Purch. Three Cab/Chassis & Three Utility BodiesG`,�y OF pWgr T i e „w �M in• rHe ��� City of Poway COUNCIL AGENDA REPORT APPROVED r APPROVED AS AMENDED ❑ (SEE MINUTES) DENIED ❑ REMOVED ❑ CONTINUED RESOLUTION NO. DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council FROM: Michael Obermiller, P. E., Director of Public Works CONTACT: Eric Heidemann, Assistant Direo(Or of Public Works for Maintenance Operations eheidemann@poway.org SUBJECT: Authorization to Purchase Three Cab/Chassis by Cooperative Purchase Agreement and Three Utility Bodies by Open Market Competitive Bid Summary: The City's adopted Fiscal Year 2018-19 Capital Replacement Budget includes funding to purchase three (3) cab/chassis (trucks) and three (3) utility bodies. For optimal pricing, it is recommended the purchase of three (3) cab/chassis be made from Downtown Ford Sales through the State of California Department of General Services (DGS) Cooperative Agreement 1-18-23-20ACLIN29, a purchasing cooperative of which the City of Poway is a participant; and the purchase of three (3) utility bodies be made from Miramar Truck Center, through a competitive bid process. Recommended Action: It is recommended that the City Council: 1. Authorize the purchase of three (3) trucks from Downtown Ford Sales through DGS's purchasing cooperative agreement, and three (3) utility bodies from Miramar Truck Center through the competitive bidding process for a total estimated cost of $179,069.76; and 2. Appropriate $3,960.40 from the Capital Equipment Replacement Fund's undesignated fund balance (F6110-89010) to the Capital Replacement Division account (115010-61040); and 3. Authorize the City Manager to execute any necessary documents. Discussion: The City operates and maintains a fleet of 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 Department of Public Works annually proposes a list of vehicles that are recommended for replacement during that fiscal year. There are three (3) vehicles that Public Works is currently recommending for replacement: three (3) cab/chassis (trucks), requiring utility body outfitting. The current Fiscal Year 2018-19 Capital Replacement Budget contains funding to replace these three (3) trucks and their outfitting. 1 of 3 March 5, 2019, Item # 1.5 Authorization to Purchase Three Cab/Chassis and Three Utility Bodies March 5, 2019 Page 2 The three (3) trucks will be purchased utilizing the prices set forth in the DGS State Contract. Negotiated and administered by the State of California General Services Agency, the State Contract is a cooperative purchasing program that local governments (and other government agencies) can "piggyback" on with their own purchase. The prices for vehicles and equipment in the statewide contract are awarded to the dealership which bids the lowest price for that make/model. Section 3.28.110 of the Poway Municipal Code permits the use of cooperative purchasing programs for procurement of supplies, services and equipment when the administering agency has made their purchase in a competitive manner. The total estimated cost to purchase three (3) trucks through the DGS purchasing cooperative is $101,682.42, which includes the following breakdown of costs: (1) $92,425.00 for the units; (2) sales and tire tax of $7,169.42 and; (3) a delivery charge of $2,088.00. Staff contacted a local dealer to confirm their membership status to the Statewide Commodity Contracts; however, they were not a member of this cooperative state contract. The three (3) trucks require utility body outfitting, which includes a full build out of the chassis for storage of shop tools and parts, lift -gate, trailer capabilities and special hardware ready-made to meet the unique needs of the respective assigned divisions (Water Transmission/Distribution, Parks and Stormwater). The outfitting of the utility bodies were made through a competitive bid process and will be completed by Miramar Truck Center, the lowest conforming bidder. The City solicited and received two qualified quotes for the utility bodies and one non-responsive quote. The quotes for utility bodies are as follows: Company Price Rank Miramar Truck Center $77,387.34 for 3 vehicles 1 Custom Truck & Body Equipment $78,278.77 for 3 vehicles 2 D&H Truck Equipment Non -Res onsive 3 The total cost for all three (3) trucks with their respective utility bodies is estimated to be $179,069.76. Purchasing these trucks eliminates the need for costly repairs due to the age and condition of the existing vehicles. When the replacement trucks are delivered, the existing vehicles will be auctioned. If approved by the City Council, the purchases will be made through a purchase order or other contract documents as approved by the City Attorney. Environmental Review: This action is not subject to California Environmental Quality Act review. Fiscal Impact: Funds in the amount of $157,000.00 are available in the Fiscal Year 2018-19 Capital Replacement Division budget (115010-61040) for the purchase of three (3) trucks and three (3) utility bodies. The total cost of these vehicles and utility bodies is $179,069.76. Savings from other budgeted capital equipment replacements in the amount of $18,109.36 are available to apply towards the shortfall of $22,069.76 and an appropriation from the Capital Equipment Replacement Fund's undesignated fund balance (F6110-89010) is requested in the amount of $3,960.40 to the Capital Replacement Division account (115010-61040). 2 of 3 March 5, 2019, Item # 1.5 Authorization to Purchase Three Cab/Chassis and Three Utility Bodies March 5, 2019 Page 3 Public Notification: A copy of this report was sent to Downtown Ford Sales and Miramar Truck Center. Attachments: None. Reviewed/Approved By: Wendy Kaserman Assistant City Manager Reviewed By: Approved By: Alan Fenstermacher Tina M. White City Attorney City Manager 3 of 3 March 5, 2019, Item # 1.5