HomeMy WebLinkAbout18 3 BI-FUEL SEDANS 03-20-06AGENDA REPORT
MEETING DATE: MARCH 20, 2006
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/FIELD SERVICES DIVISION
SUBJECT: AUTHORIZATION FOR THE STATE TO PURCHASE THREE BI-FUEL
SEDANS
SUMMARY
Approval of Resolution No. 06-37 will authorize the General Services Department of the State
of California to purchase three current model year bi-fuel sedans on behalf of the City of
Tustin.
RECOMMENDATION
It is recommended that the City Council approve Resolution No. 06-37 authorizing the General
Services Department of the State of California to purchase three current model year sedans on
behalf of the City of Tustin.
FISCAL IMPACT
Adequate funds are currently available in the Lease Fund Budget (Account # 84-801-9715) for
the replacement of two sedans. Funds for the third new sedan are budgeted in the Water
Services Division Budget (Account # 01-452-9720). The total cost for three sedans including
all taxes and state fees is $45,166.23.
DISCUSSION
The purchase of these three sedans is for the replacement of two existing 1991 Chevy
Luminas in the Field Services and the Water Services Divisions and for a new additional sedan
for the Water Engineering staff. The two units being replaced were scheduled for replacement
in 2002 and carried over because of condition and mileage. The purchase of these sedans will
increase the efficiency of the Public Works Department and minimize the vehicle maintenance
cost. The new sedans are designed to run on Ethanol (E85) and/or Gasoline and considered to
be bi-fuel vehicles. City staff reviewed hybrid vehicles available through the State contract and
found that the only available vehicles were the smaller sized Honda Civic or Accord. The
hybrid vehicles are designed to run on gas and/or an electrical battery. In researching these
vehicles staff found that battery life is three to four years and the replacement cost is very high.
Furthermore the cost of the Honda Civic is about $8,000 and the Accord is about $16,000
more than the Chevy Impala.
Authorization for the State to Purchase Three Bi-fuel 4 Door Sedans
March 20, 2006
Page 2
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 sedan. The prices listed below include all taxes, applicable fees, rebates and early
payment discount.
Three Bi-Fuel 4 Door Sedans
State 4 Door Sedans Total
Vendor Contract Cost
Coalinga Motors . YES $15,055.41(EACH) $45,166.23
Tustin Chevrolet NO $ NO BID $ NO BID
Guaranty Chevrolet NO $ 16,148.98(EACH) $ 48,446.94
George Chevrolet NO $ NO BID $ NO BID
. State Contract pricing includes 2.48% 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
4 door sedans through the General Services Department of the State of California at a total cost
of $45,166.23 from Coalinga Motors, Coalinga CA.
Approval of the attached resolution allows the City to utilize the State's Purchasing Program to
obtain three sedans 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
Wisam Altowaiji
Manager Field services
TDS:WA:ccg:Authorizing the State to purchase 3 bituel sedans & Reso 06-.37.doc
Attachment: Resolution No. 06-37
RESOLUTION NO. 06-37
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 three current model year bi-fuel
4 door sedans 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
20th day of March 2006.
Doug Davert, Mayor
ATTEST:
City Clerk