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HomeMy WebLinkAbout24 STATE PURCH 1 PU TRUCK 09-05-06 AGENDA REPORT MEETING DATE: SEPTEMBER 5, 2006 TO: WilLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/FIELD SERVICES DIVISION SUBJECT: AUTHORIZATION FOR THE STATE TO PURCHASE ONE EXTRA CAB PICKUP TRUCK SUMMARY Approval of Resolution No. 06-108 will authorize the General Services Department of the State of California to purchase one current model year extra cab pickup truck on behalf of the City of Tustin. RECOMMENDATION It is recommended that the City Council approve Resolution NO.06-108 authorizing the General Services Department of the State of California to purchase one current model year pickup truck on behalf of the City of Tustin. FISCAL IMPACT Adequate funds are currently available in the lease Fund Budget (Account # 84-801-9720) for the replacement of one pickup truck. The total cost for this truck including all taxes and state fees and options is $15,583.70. DISCUSSION The purchase of this truck is for the scheduled replacement of one existing 1997 Ford Ranger in the Community Development Department, Building Division. The purchase of this truck will increase the efficiency of the Community Development Department 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, options and early payment discount. Authorization for the State to Purchase One Extra Cab Pickup September 5, 2006 Page 2 State Extra Cab Pickup Total Vendor Contract with Options Cost Victor GMC 'YES $15,583.70 $15,583.70 George Chevrolet NO $ 18,899.57 $ 18,899.57 Guaranty Chevrolet NO $ 18,514.46 $ 18,514.46 Simpson Buick/GMC NO NOBID NOBID Tustin Chevrolet NO NOBID NOBID . State contract pricing includes 2.48% state fee, a $500 discount for payment within 20 days, $8.75 state tire fee and optional equipment. As a result of the comparison, the most cost-effective option for the City is to purchase the new truck is through the General Services Department of the State of California at a total cost of $15,583.70 from Victor GMC, Corona CA. Approval of the attached resolution allows the City to utilize the State's Purchasing Program to obtain one new extra cab pickup truck with options 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. Director of Public Works/City Engineer Wisam Altowaiji Manager Field services TDS: WA: ecg: Authorization State to purchase 1 extra cab PU & Resa 06.108.doc Attachment RESOLUTION NO. 06-108 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 Califomia 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 one current model year extra cab pickup truck with options 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 5th day of September 2006. Doug Davert, Mayor ATTEST: City Clerk