HomeMy WebLinkAbout11 PURCH 2 PU TRUCKS FOR PW 09-16-08AGENDA REPORT
MEETING DATE: SEPTEMER 16, 2008
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/FIELD SERVICES DIVISION
SUBJECT: AUTHORIZATION TO PURCHASE TWO EXTENDED CAB PICKUP TRUCKS
WITH ACCESSORIES FOR PUBLIC WORKS/ENGINEERING DIVISION
SUMMARY
Authorize City staff to purchase two (2) extended cab pickup trucks for use by the Public
Works Department/Engineering Division.
RECOMMENDATION
It is recommended that the City Council award the bid for the purchase of two (2) extended cab
pickup trucks with accessories to Victor Buick GMC Corona, CA, in the amount of $40,941.60.
FISCAL IMPACT
Adequate funds are budgeted and available in the lease fund account (84-801-9720) for the
purchase of two (2) extended cab pickup trucks with accessories. The total cost including all
taxes, fees, discounts, delivery and rebates is $40,941.60.
BACKGROUND
Currently, two vehicles within the Public Works Engineering Division are beyond their useful life
and scheduled for replacement and surplus this Fiscal Year. These vehicles are utilized daily
for routine work activity by Public Works Inspectors. The proposed purchase of two new
vehicles will replace this inventory in accordance with our current Fiscal Year Vehicle Lease
Replacement Program.
Normally vehicles are purchased through the state contract in accordance with the City's
purchasing policy. Since the state buys in large volume they are able to receive a more
competitive price for vehicles than the City in most cases. As part of the normal purchasing
process, City staff contacted a number of local dealers in the area and received the following
prices for the liked equipped extended cab pickup trucks. The prices listed below include all
taxes, applicable fees, rebates, delivery and early payment discounts.
Authorization to Purchase One Pickup Truck with Utility Body and Accessories for
Public Works/Engineering Division
September 16, 2008
Page 2
COST PER ACCESSORIES TOTAL
VENDOR UNIT PER UNIT COST
VICTOR GMC $20,470.80 INCL $40,941.60
COALINGA MOTORS* $18,868.03 $1,624,87 $40,985.78
(STATE CONTRACT)
GEORGE CHEVROLET $23,549.57 INCL $47,099.14
TUSTIN CHEVROLET NO BID NO BID
State contract pricing includes (2.27%) state fee, a 500.00 discount for payment
within 20 day, state tire fees, delivery and optional equipment.
DISCUSSION
The state contract truck is only available in a 2008 model. The state contract for 2009 model is
being delayed due to the delay in the approval of the state budget. Each of the other bidding
dealers are quoting a 2009 model.
As a result of comparison, the most cost-effective option for the City is to purchase the (2) two
new 2009 model extended cab pickup trucks from Victor Buick/GMC in Corona at a cost of
$40,941.60. Victor Buick/GMC is a state dealer for other type of vehicles and was able to price
these trucks with discounts and incentives similar to the ones offered by the manufacture to
the state dealer for these trucks. Furthermore, the City does not have to pay the state contract
use fees (2.27%) and delivery charges when buying directly from Victor Buick/GMC. This has
lowered the price of the vehicle to make it more advantages than the state dealer price.
Tim D. Serlet
Director of Public Works/City Engineer
Wisam Altowaiji
Field Service Manager
Authorization to purchase 2 inspector trucks.docx