HomeMy WebLinkAboutNB 3 PURC USED VEHICLES 10-4-82DATE:
TO:
FROH:
SUBJECT:
September 29, 1982
NEW BUSINESS
10-4-82
Inter-Corn
Bill Huston, City Ma~ag~
Ron Nault, Finance D~t%r
Purchase of Used Vehicles through Exception from Formal Purchasing Pro-
cedures.
RECOMMENDATION
Authorize the City Manager to purchase used vehicles and equipment, evoking
Section 1624 of Ordinance No. 871, Bidding Exceptions.
BACKGROUND
Both the Police and Public Works Departments have been investigating the purchase
of used vehicles from Hertz and Avis car ental companies for use as unmarked and
administrative vehicles. Several agencies throughout the state have been pur-
chasing these used vehicles and have saved on both purchase and maintenance costs.
Generally, one-year old vehicles can be purchased for up to 30% less than new and
they will carry a 12-month, 12,000 miles guarantee on them. Considering the cost of
a new basic mid-size sedan, this could mean as much as $2,500 per vehicle.
DISCUSSION
The Police and Public Works Departments are getting ready to go to bid for two re-
placement vehicles. Their preliminary research indicates that they can find
several cars from Hertz and/or Avis that will suit their needs and save $3,000-$5,000
on the combined purchase, but the dealer cannot guarantee or will not hold the
vehicle for more than 24 hours.
What we are proposing is that the City Manager approve a purchase through Section
1624 of the Purchasing Ordinance. Section 1624 has several basis of exception,
including for that "where bidding would be impossible, impractical, or incongrous."
The Section also requires that "whenever exceptions to bidding procedures are
authorized the City Manager shall prepare a report in detail to the City Council at
the next regularly scheduled Council meeting."
What we propose is a policy that would require an informal survey of available new
and used vehicles that would satisfy the specs as developed by the Purchasing De-
partment. If there are not any acceptable used vehicles we would go through the
full formal bid procedure. If acceptable used vehicles can be found we would re-
quest the dealer hold them for 24 hours and prepare a request to purchase to be ap-
proved by the City Manager. The request would include documentation that details
the informal bids received. If the City Manager approves the purchase a purchase
order will be issued and a report to Council will be prepared, detailing the trans-
action.
Without the ability to respond to the needs of the open market place we are
effectively closing ourselves off to potential savings on the purchase of used
Bill Huston, City Manager
September 29, 1982
Purchase of Used Vehicles
page 2.
non specialty vehicles. If it turns out that the purchase of used vehicles will
not satisfy the needs of the City of Tustin, then we will discontinue the policy.
We are requesting this authorization to encourage cost savings awareness.