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HomeMy WebLinkAbout10 PURCHASE TWO TRUCKS 10-17-05 AGENDA REPORT Agenda Item 10 Re~ewed: ~ City Manager Finance Director MEETING DATE: OCTOBER 17, 2005 TO: WilLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/FIELD SERVICES DIVISION SUBJECT: AUTHORIZATION FOR THE STATE TO PURCHASE TWO EXTENDED CAB PICKUP TRUCKS SUMMARY Approval of Resolution No. 05-104 will authorize the General Services Department of the State of California to purchase two current model year extended cab pickup trucks on behalf of the City of Tustin. RECOMMENDATION It is recommended that the City Council approve Resolution No. 05-104 authorizing the General Services Department of the State of California to purchase two current model year extended cab pickup trucks on behalf of the City of Tustin. FISCAL IMPACT Adequate funds are currently available in the lease Fund Budget for the purchase of one replacement pickup truck. The other one is a new truck for the new Contract Coordinator budgeted under account 01-404-9845. The total cost including all taxes and State fees is $32,698.82. DISCUSSION The purchase of first truck is for the replacement of an existing 1996 Ford Ranger pickup in the landscape Department. The second truck will be a new one for the landscape contract coordinator position. The purchase of these trucks will increase the efficiency of the landscape operations and minimize the vehicle maintenance cost. Each year the State bids and awards vehicle and equipment contracts to various dealerships throughout the State. Since the State buys in large volume they are able to receive a more competitive price for vehicles than the City. Staff reviewed published prices obtained from local vendors and compared these prices to those contained in the State contract. Staff also contacted a number of local dealers in the area and received the following prices for a like equipped truck. The prices listed below include all taxes, applicable fees, rebates and early payment discount. Authorization for the State to Purchase two extended cab pickup trucks October 17, 2005 Page 2 Vendor Two Extended Cab Pickup Trucks State Extended cab Total Contract Pickup Truck Cost . YES $16,349.41 (EACH) $32,698.82 NO $17,619.63 $35,239.26 NO $18,938.14 $37,876.28 Maita Chevrolet Victor GMC Guaranty Chevrolet . State contract pricing includes 2.56% State Fee, a $500 discount for payment within 20 days and an $8.75 State tire fee for each unit. As a result of the comparison, the most cost-effective option for the City is to purchase the new extended cab trucks through the General Services Department of the State of California at a total cost of $32,698.82 from Maita Chevrolet, Elk Grove, CA. Approval of the attached resolution allows the City to utilize the State's Purchasing Program to obtain two pickup trucks as specified at a substantially 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 .- a~~¿./-o Wisam Altowaiji Manager Field services TDS:WA:ccg:Authorization for State to purchase 2 PU trucks & Reso 05-104.doc Attachment RESOLUTION NO. 05-104 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 two current model year extended cab pickup trucks 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 17th day of October 2005. Lou Bone, Mayor ATTEST: City Clerk