Item 12 - Authorization to Purchase One (1) Medium-Duty Utility Truck through the GM Government Bid Assistance ProgramDecember 5, 2023, Item #12DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT City of Poway CITY COUNCIL December 5, 2023 Honorable Mayor and Members of the City Council Eric Heidemann, Director of Public Works {I; Michael Obermiller, Public Works Operations Manager ~ (858) 668-4722 or mobermiller@poway.org Authorization to Purchase One (1) Medium-Duty Utility Truck through the GM Government Bid Assistance Program The City of Poway's approved Fiscal Year 2023-24 operating budget includes funding to purchase one (1) medium-duty utility truck. The City has used the General Motors (GM) Government Bid Assistance Program to ensure optimum pricing when purchasing vehicles and equipment. Through the GM Government Bid Assistance Program, Courtesy Chevrolet presented optimal pricing for one (1) medium-duty utility truck in the amount of $64,690.67. The vehicle meets the City's service requirements and specifications. Recommended Action: It is recommended the City Council adopt a resolution authorizing the purchase of the following equipment: 1) One (1) Medium-Duty Utility Truck ($64,690.67) from Courtesy Chevrolet Center through the General Motors Government Bid Assistance Program; and 2) Authorize the City Manager to execute any necessary documents. Discussion: The City operates and maintains over 125 street-legal vehicles and other heavy equipment for the purpose of inspecting, maintaining and operating City facilities and infrastructure. Annually, several of these vehicles and pieces of equipment must be replaced as they have exceeded their useful life or have excessive mileage. The current budget contains funding to replace one (1) medium-duty utility truck. City Council approved the addition of a utility mechanic position in the Fiscal Year 2021-22 operating budget. The accompanying utility truck was budgeted in the Fiscal Year 2023-24 budget. While the position was funded in the Fiscal Year 2021-22 budget, the purchase of the associated vehicle was intentionally delayed to a future budget in order to provide for an extended training period during which the new position would not require a vehicle. The training period has concluded, and purchase of the utility truck is included in the Fiscal Year 2023-24 approved budget. 1 of4
December 5, 2023, Item #12Staff reached out to local Poway dealerships and two additional quotes were received from Aaron Ford and Pedder Dodge Ram. Section 3.28.090 of the Poway Municipal Code allows preference to be granted to local vendors for one percent of the taxable portion of their respective quotes, which is equal to the portion of sales tax the City receives. Additionally, the GM Government Bid Assistance Program provides an exclusive discount option to participating agencies. After careful evaluation of various purchasing options and pricing, staff determined it is in the best interest of the City not to proceed with its own formal bid process and recommends the formal bidding procedures are waived for the following reasons: 1) The City has recently purchased vehicles using the General Motors (GM) Government Bid Assistance Program and received good pricing based on prior purchasing experience. 2) The requirement of the Poway Municipal Code Chapter 3.28 to formally bid this purchase will not likely result in a lower price given staffs historical experience and the informal quotes obtained below. 3) Any extended formal bid process will likely result in a higher purchase price and delayed delivery date, given ongoing supply chain challenges, both of which would not be in the public's best interest. The quotes for one (1) medium-duty utility truck are as follows: COURTESY AARON FORD PEDDER DODGE RAM UNIT AVAILABLE CHEVROLET (1% LOCAL VENDOR (1% LOCAL VENDOR FUNDS (GM BID PREFERENCE PREFERENCE ASSISTANCE) APPLIED) APPLIED) Medium-Duty $70,000.00 $64,690.67 $68,539.25 $72,203.75 Utility Truck Copies of all quotes are on file with the Public Works Department. Environmental Review: This action is not subject to review under the California Environmental Act (CEQA). Fiscal Impact: The City Council approved and budgeted to add this vehicle to the City's Fleet as a result of a new position for the Utility Systems Operations and Maintenance Division, on June 13, 2023. As such, full funding is available in the Fiscal Year 2023-24 division operating budget for the Utility Systems Operations and Maintenance (401060-61040) for the purchase of one (1) medium-duty utility truck at a cost of $64,690.67. Public Notification: None. Attachments: A. Resolution 2 of 4
December 5, 2023, Item #12Reviewed/Approved By: WendyJS}iserman Assistant City Manager 3 of 4 Reviewed By: Alan Fenstermacher City Attorney Approved By: c~~ City Manager
RESOLUTION NO. 23-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, AUTHORIZING THE PURCHASE OF ONE MEDIUM-DUTY UTILITY TRUCK
WHEREAS, the City of Poway (City) operates and maintains over 125 street-legal vehicles and other heavy equipment for the purposes of inspecting, maintaining and operating City facilities and infrastructure and to provide public safety services;
WHEREAS, in Fiscal Year 2023-24, City Council approved the addition of a vehicle for the utility mechanic position;
WHEREAS, the City utilized the GM Government Assistance Program offering discount to government entities;
WHEREAS, the City found Courtesy Chevrolet Center to be the lowest responsible competitive quote at $64,690.67; and
WHEREAS, the Fiscal Year 2023-24 operating budgets include sufficient funding for the purchase of one medium-duty utility truck.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows:
SECTION 1: The purchase of one medium-duty utility truck from Courtesy Chevrolet utilizing the General Motors Government Bid Assistance Program, at total cost of $64,690.67 is authorized.
SECTION 2: The City Manager is hereby authorized to execute any documents necessary for these purchases.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Poway, California on the 5th day of December, 2023 by the following vote, to wit:
AYES:
NOES:
ABSTAINED:
ABSENT:
DI SQUALi Fl ED:
Steve Vaus, Mayor
ATTEST:
Carrie Gallagher, CMC, City Clerk
4of4 December 5, 2023, Item #12ATTACHMENT A