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HomeMy WebLinkAbout13 PURCHASE 1 FORD 04-21-03AGENDA REPORT 13 Agenda Item Reviewed: City Manager ~ Finance Director MEETING DATE: TO: FROM: SUBJECT: APRIL 21, 2003 WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/WATER SERVICES DIVISION AUTHORIZATION FOR THE STATE TO PURCHASE ONE FORD F550 SUMMARY Adoption of Resolution No. 03-51 will authorize the Department of General Services, State of California to purchase a current model year Ford F550 on behalf of the City of Tustin. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 03-51 authorizing the Department of General Services, State of California to purchase a current model year Ford F550 on behalf of the City of Tustin. FISCAL IMPACT Funds are currently budgeted in the Public Works Water Services Division Operating Budget, Account Number 70-452-9720 and Equipment Lease Fund, Account Number 84-801-9720 for the purchase of one current year model Ford F550 with specified additional equipment. The total cost including all taxes and state fees is $42,133.10. DISCUSSION The Ford F550 with specified additional equipment will replace an eleven-year-old medium duty service vehicle. The proposed purchase of the Ford F550 with the specified additional equipment will increase the efficiency of the maintenance operations in the Water Services Division and help replace an aging fleet. The State buys in large volume and is able to receive a more competitive price for equipment than the City. Staff contacted a number of local dealers and received the following bid prices for a like equipped Ford F550. The prices listed below include sales taxes and applicable fees. Authorization for the State to Purchase One Ford F550 April 21, 2003 Page 2 State Vendor Unit Price Accessories Contract Downtown Ford Yes $24,986 $13,669.10'* Ford of Orange No $26,523.30 $12,881 Villa Ford No $26,753.77 $12,881 Joe Macpherson Ford No $30,805 $12,881 State Total Unit Taxes Fee* Cost $2,995.77 $482.23 $42,133.10 $3,053.83 NA $42,458.13 $3,071.69 NA $42,706.46 $3,385.67 NA $47,071.67 * State Fee is 1.93% of Unit Price. ** Accessories added to a State purchased vehicle that are not factory options may be subject to a price percentage increase from the dealer. NA - Not Applicable As a result of the comparison, the most cost-effective option for the City is to purchase the Ford F550 through the Department of General Services, State of California at a total cost of $42,133.10. Approval of the attached resolution allows the City to utilize the State's purchasing program to obtain one Ford F550 at a lower cost than the City can obtain on its own. It also designates the City Manager as the public official authorized to execute this request on behalf of the City. Tim D. Serlet Director of Public Works/City Engineer Brian A. Ragland Water Services Manager TDS:BAR:ccg:Auth for State to purchase Ford & Reso #03-51 .doc RESOLUTION NO. 03-51 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA AUTHORIZING THE DEPARTMENT OF GENERAL SERVICES OF THE STATE OF CALIFORNIA TO PURCHASE CERTAIN ITEMS WHEREAS, the City has need to purchase various material, supplies and equipment in order to conduct the operations of the City; and WHEREAS, Section 1624, Item C of the Tustin Municipal Code authorizes the State of California to purchase materials, supplies, and equipment if it can be acquired more cheaply or efficiently by the State; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Tustin, California, does hereby authorize the Procurement Division, Department of General Services of the State of California, to purchase one current model year Ford F550 for and on behalf of the City of Tustin pursuant to Section 10324 of the California Public Contract Code, and that Mr. William A. Huston, City Manager, is hereby directed to sign and deliver all necessary requests and other documents in connection therewith and for and on behalf of the City of Tustin. PASSED AND ADOPTED at a regular meeting of the Tustin City Council on the 21st day of April 2003. Tracy Wills Worley, Mayor ATTEST: City Clerk