REPORT TO COUNCIL
SUBJECT
Title
Award of Contract for Three Service Trucks for the Departments of Environmental Services and Public Works (F16-46)
Report
REPORT IN BRIEF
Council approval is requested to award a contract to Oroville Ford, in the amount of $111,727, for three service trucks to be used by the Departments of Public Works and Environmental Services for materials transport and maintenance work. A total of six trucks were bid, with the ability to award to a single or multiple bidders based upon pricing. Bids were received from three firms but pricing was only provided for 5 of the 6 trucks. Should Council approve this recommendation, three of the trucks will be purchased from Oroville Ford. The two remaining trucks will be purchased from Frontier Ford of Santa Clara under the City Manager’s contract award authority (the bid amount is $74,297). The sixth truck will be re-bid.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Municipal Code, Council approval is required to approve contracts greater than $100,000, and to award an Invitation for Bids to the lowest responsive and responsible bidder(s).
ENVIRONMENTAL REVIEW
N/A
BACKGROUND AND DISCUSSION
The replacement of City vehicles is based on hours of operation, miles traveled, equipment condition, maintenance costs and budgeted replacement funding. Six service trucks used by the Departments of Public Works and Environmental Services are scheduled for replacement this fiscal year. These vehicles are 10-13 years old and have accumulated between 90,000 and 115,000 miles.
An Invitation for Bids (IFB No. F16-46) to replace the six trucks was issued in October 2015 through the City’s Onvia DemandStar public procurement network. Sealed bids were received and opened publicly on October 28. Three responsive bids were received as shown in Attachment 1, Bid Tabulation.
The IFB was structured to allow the award of a contract to a single bidder for the entire procurement or to multiple bidders by line item. Staff has determined that awarding contracts on a line-item basis provides the lowest cost to the City. Therefore it is recommended that Council award a contract to Oroville Ford for three of the vehicles (Items 1, 4 and 6, which include a one-ton extended cab, cargo minivan and 3/4 ton regular cab) from Attachment 1. A separate contract will be issued under the City Manager’s contract award authority to Frontier Ford for two of the vehicles (Items 2 and 5, which include a 1 ½ ton regular cab and a cargo van). No bids were submitted for Item 3, a dump truck. Therefore, staff will request quotes from other dealerships for this vehicle.
FISCAL IMPACT
The total cost for the three service trucks is $111,727. This consists of $102,710 for the vehicles, tire fees in the amount of $30 and $8,987 in sales tax. Budgeted funding for all six trucks is available in the Fleet Equipment Replacement Account.
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. Contributions are made incrementally over time to this fund for replacement of vehicles from the various city operating programs and their corresponding funding sources.
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
Award a contract in the amount of $111,727 to Oroville Ford for three service trucks, in substantially the same form as draft purchase order attached to the report.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director of Finance
Reviewed by: Manuel Pineda, Director of Public Works
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Tabulation
2. Draft Purchase Order