HomeMy WebLinkAbout16 AUTH TO PURCH GMC TRUCK FOR FS 11-06-07Agenda Item
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Reviewed:
AGENDA REPORT Cit Manager
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MEETING DATE: NOVEMBER 6, 2007
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/FIELD SERVICES
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SUBJECT: AUTHORIZATION TO PURCHASE ONE GMC TRUCK WITH UTILITY BODY
FOR FIELD SERVICES
SUMMARY
Authorize City staff to purchase one (1) GMC truck with utility body for use by the Public Works
Department /Field Services Division.
RECOMMENDATION
It is recommended that the City Council award the bid for the purchase of one (1) GMC truck
with utility body to Victor Buick/GMC Corona, CA, in the amount of $ 23,753.08.
FISCAL IMPACT
Adequate funds are available in lease fund account 84-801-9720 for the purchase of one GMC
truck with utility body. The Vehicle Maintenance Division will purchase and install emergency
lighting at an additional cost of $1,015.07. The total cost including all City installed safety
lighting, taxes, fees, discounts and rebates is $24,768.15.
BACKGROUND
The proposed replacement/purchase of one GMC truck with specified equipment for Field
Services Division is scheduled in the current 2007/08 Vehicle Lease Fund Program. This
replacement will minimize the vehicle maintenance cost and increase the efficiency of the Field
Services Division.
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 like equipped truck with utility body. The prices listed below include all taxes,
applicable fees, rebates and early payment discounts.
Authorization to Purchase One Pickup Truck with Utility Body for Field Services
November 6, 2007
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Victor Buick/GMC
COST PER UNIT
UTILITY BODY
UNIT COST
$19,125.22
Coalinga Motors (State Contract) $19,589.96
$4,627.86
$5, 090.65
$23,753.08
$24,680.61
George Chevrolet $22,166.25 $4,627.86 $26,794.11
State contract pricing includes (1.98%) state fee, a $500.00 discount for
payment within 20 days, state tire fees and optional equipment.
As a result of the comparison the most cost-effective option for the City is to purchase the new
truck with utility body from Victor Buick/GMC in Corona at a cost of $23,753.08. Victor
Buick/GMC is a state dealer for other types of vehicles and was able to price this truck with
discounts and incentives similar to the ones offered by the manufacture to the state dealer for
this truck. Furthermore, the City does not have to pay the state contract use fees (1.98%) and
a 10% markup for the utility body when buying directly from Victor Buick/GMC. This has
lowered the price of the vehicle to make it cheaper than the state dealer price.
Tim D. Serlet Wisam Altowaiji
Director of Public Works/City Engineer Field Service Manager