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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 Item 8.f. - Page 3 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.f. - Page 4