REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Order for Five (5) 4-door Sedans for the Department of Public Safety (F18-311)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a Purchase Order to Winner Chevrolet of Elk Grove in the amount of $109,328.75 (including tire fees and delivery fees) excluding sales tax, for five (5) 4-door Sedans to be used by the Department of Public Safety.
EXISTING POLICY
Pursuant to Section 2.08040 of the Sunnyvale Municipal Code (SMC), Council approval is required for the procurement of goods and/or services greater than $100,000 in any one transaction.
Consistent with the provision of SMC Section 2.08.220(a), the purchasing officer may authorize the City’s participation with one or more other governmental, public or quasi-public agencies in a cooperative agreement for the procurement of goods and/or services, provided that at least one of the agencies has solicited bids using methods similar to those set forth in SMC Section 2.08.060.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The Department of Public Safety (DPS) currently uses a combination of vehicles, including marked and unmarked sedans, SUV’s and motorcycles, for patrol and intelligence operations. The economical operation of the City’s fleet requires that vehicles and equipment be replaced prior to the time when operating costs exceed the life cycle cost in accordance with the vehicle replacement schedule. The criteria established for vehicle replacements are based on calculated life expectancy and accumulated mileage as determinants of useful life. Based on the extended usage and accumulation of miles per year on patrol and investigation type vehicles, the Fleet Maintenance Division has designated the useful life of these vehicles to be at five years or 100,000 miles. The identified vehicles scheduled for replacement have either met or exceeded these criteria for the upcoming cycle of replacements.
Additionally, DPS vehicles must meet specified horsepower ratings and passenger capacities for law enforcement vehicles, which have been established by the City of Sunnyvale. As such, the specification writing process is a collective effort between DPS and Fleet Maintenance in the development of departmental specific requirements that meet operational necessities for these replacement vehicles.
Traditionally, the City has purchased fleet vehicles through a cooperative purchasing agreement or through the California State Contract pricing. The City has used the State of California contract many times in the past to identify vendors and has experienced better pricing than when bidding the goods/services individually. Vehicles that meet the specified requirements are available through State of California Cooperative agreement and it is in the best interest of the City to purchase through the State contract. Utilizing the state contract pricing saves time researching and writing numerous vehicle specifications while benefiting from established vehicle pricing through this agreement.
FISCAL IMPACT
Budgeted funding is available in the Fleet Equipment Replacement Account.
This table outlines the total cost of purchase with estimated sales tax.
|
Description |
Quantity |
Unit Cost |
|
Total |
|
4 Door Sedan |
5 |
$21,557.00 |
|
$107,785.00 |
|
Tires Fee |
5 |
$8.75 |
|
$43.75 |
|
Delivery Fee |
5 |
$300.00 |
|
$1,500.00 |
|
Sub-Total |
|
$21,865.75 |
|
$109,328.75 |
|
Estimated Tax |
5 |
$1,940.13 |
|
$9,700.65 |
|
Total |
|
$23,805.88 |
|
$119,029.40 |
Funding Source
The City’s Fleet vehicles are funded by the City’s General Services Fund, Fleet Services Sub-Fund which provides for ongoing fleet equipment replacement.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Authorize the issuance of a Purchase Order in the amount of $109,328.75 (including tire fees and delivery fees) excluding sales tax, in substantially the same form as Attachment 1 to the report, to Winner Chevrolet for five (5) 4-door Sedans.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Phan Ngo, Director of Public Safety
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Purchase Order