HomeMy WebLinkAbout23 PURCH CHEVY TAHOE-RDA 09-05-06AGENDA REPORT
MEETING DATE: SEPTEMBER 5,2006
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/FIELD SERVICES DIVISION
SUBJECT: PURCHASE OF A 4x4 CHEVROLET TAHOE FOR THE
REDEVELOPMENT AGENCY
SUMMARY
Report on the purchase of a 4x4 Chevrolet Tahoe for the Redevelopment Agency in
accordance with City Municipal Code Section 1624.
RECOMMENDATION
Receive and file.
FISCAL IMPACT
Adequate funds were available in the Lease Fund Account for the purchase of this vehicle.
The total cost including all taxes, fees, discounts and rebates was $35,129.50.
BACKGROUND
The Redevelopment Agency was scheduled to replace one Dodge Caravan in 2004.
However, based on its condition and mileage this vehicle has been carried over for the last
two years. This vehicle is currently used by City staff and Council members for monitoring
the progress of construction at Tustin Legacy. It was determined that an upgrade to a 4x4
higher profile vehicle (Chevrolet Tahoe) would be necessary due to the topography in the
construction areas.
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 process,
City staff contacted a number of local dealers in the area and received the following prices
for the like equipped 4x4 Chevrolet Tahoe. The prices listed below include all taxes,
applicable fees, rebates and early payment discounts.
Purchase of a 4x4 Chevrolet Tahoe for the Redevelopment Agency
September 5, 2006
Page 2
VENDOR
TOTAL COST
George Chevrolet (In stock)
$35,129.50
$35,574.56
Victor GMC (To be ordered and delivered in 45 days)
Coalinga Motors (To be ordered through state contract)
$35,750.45
$35,765.43
Tustin Chevrolet (In stock)
Guarantee Chevrolet (In stock)
$35,839.73
Selman Chevrolet (To be ordered and delivered in 45 days)
$37,999.55
Tustin Buick GMD
No Bid
As a result of the comparison, the most cost-effective option for the City was to purchase the
new 4x4 Chevrolet Tahoe from George Chevrolet at a cost of $35,129.50 with immediate
delivery. It is believed that the reason for being able to obtain lower bids from local dealers
than state contract is due to the manufactures' rebates and incentives that were
implemented after the bidding of the state contract. Since the most effective option for in-
stock vehicles is only available on a first-come-first-served basis and will not allow for
waiting to obtain Council approval the purchase was made with the City Manager's approval
as per Section 1624, Item B "Bidding Expectations" of the Tustin Municipal Code. This
report is made as required by the same section of the code for City Council information.
Tim D. Serlet
Director of Public Works/City Engineer
Wisam Altowaiji
Field Services Manager
TDS;WAccg:Purchase 4x4 Tahoe for RDA.doc