CC 2015-01-13_08f Award Bid_Pick-Up TruckMEMORANDUM
TO: CITY COUNCIL
FROM: GEOFF ENGLISH, DIRECTOR OF PUBLIC WORK~
SUBJECT: CONSIDERATION OF THE PURCHASE OF A REPLACEMENT
3/4 TON PICK-UP TRUCK
DATE: JANUARY 13, 2015
RECOMMENDATION:
It is recommended the City Council award the bid for the purchase of a
replacement 3/4-ton pick-up truck to Mullahey Ford in the amount of $21,373.33.
IMPACT TO FINANCIAL AND PERSONNEL RESOURCES:
$22, 7 45.00 is available from an insurance settlement for the purchase of this
service truck. Staff time was expended to remove all equipment from the
damaged vehicle.
BACKGROUND:
Public Works Department vehicle, PW-6, a 2009 3/4-ton pick-up truck was
involved in a two-vehicle, non-injury accident in July 2014. The truck was
"totaled" due to the extent of vehicle damage according to the insurance claims
administrator. On October 28, 2014, the City Council approved the surplus and
disposition of this damaged vehicle. The insurance company accepted the bid
from San Luis Auto Salvage in the amount of $750.00. The salvage company
picked up the damaged vehicle at the City's Corporation Yard.
ANALYSIS OF ISSUES:
Following the receipt of the insurance proceeds for this vehicle, staff solicited
competitive bids for the purchase of a replacement 3/4-ton pick-up truck on
November 25, 2014. Four bids were received by the due date of December 16,
2014. The lowest responsible bid was received from Perry Ford of San Luis
Obispo in the amount of $21,053.52, however, staff is recommending that the
City Council award the purchase to Mullahey Ford of Arroyo Grande, CA in the
amount of $21,373.33.
According to the City's purchasing policy, a 5% local vendor preference is
afforded to vendors located within the Arroyo Grande City limits. Following the
application of the 5% local vendor preference to Mullahey Ford, the adjusted bid
amount for comparison purposes is $20,304.66. The City will still be responsible
to pay the full bid amount to Mullahey Ford in the amount of $21,373.33. A copy
of the bid summary for the replacement 3/4-ton pick-up truck is attached.
Item 8.f. - Page 1
CITY COUNCIL
CONSIDERATION TO AUTHORIZE THE PURCHASE OF PUBLIC WORKS
DEPARTMENT REPLACEMENT PICK-UP TRUCK
JANUARY 13, 2015
PAGE2
ADVANTAGES:
The City received a settlement check in the amount of $22,745.00 which leaves a
savings of $1,371.67 over the purchase price of the new vehicle. Some of the
savings may be used to equip the new truck.
DISADVANTAGES:
No disadvantages have been identified for the project.
ENVIRONMENTAL REVIEW:
No environmental review is required for this administrative action.
ALTERNATIVES:
The following alternatives are provided for the City Council's consideration:
1. Award the bid as recommended;
2. Do not award the bid;
3. Direct staff to re-bid the vehicle replacement; or
4. Provide direction to staff.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, January ath, 2015. The
Agenda and staff report were posted on the City's website on Friday, January gth,
2015.
ATTACHMENT:
1. Bid Log Sheet
Item 8.f. - Page 2
BID OPENING LOG SHEET
CITY OF ARROYO GRANDE
DEADLINE: DECEMBER 16, 2014, 2:00 PM
% Ton Service'Truck Purchase
SUBMITTED BY:
Perry Ford
San Luis Obispo, CA
Santa Maria Ford
Santa Maria, CA
Arroyo Grande Chevrolet
San Luis Obispo, CA
Mullahey Ford
Arroyo Grande, CA
c: Director of Public Works
Acting City Manager
TOTAL
$21,053.52
$21,811.79
$37,964.52
$21,373.33
ATTACHMENT 1
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