REPORT TO COUNCIL
SUBJECT
Title
Modify a Purchase Order with Interstate Auto Sales for Purchase of Car Broker Services (F20-073)
Report
REPORT IN BRIEF
Approval is requested to amend an existing blanket purchase order with Interstate Auto Sales of Fresno, CA, increasing the not-exceed amount by $120,000 for a new total not-to-exceed amount of $200,000. Additionally, approval is requested to authorize the City Manager to modify the purchase order, subject to budgeted amounts.
EXISTING POLICY
Pursuant to Chapter 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and/or services exceeding $100,000 in any one transaction.
Further, Section 2.08.070(b)(3) of the Sunnyvale Municipal Code exempts from competitive bidding those purchases in which solicitations of bids or proposals would be impractical, unavailing or impossible.
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
Economical operation of the City's fleet requires that vehicles and equipment be replaced before operating costs become excessive. As one method to provide replacement vehicles that meet the City's need, the City contracts with Interstate Auto Sales (Interstate) to provide car broker services for the purchase of used vehicles which are typically utilized for the Department of Public Safety. Interstate identifies vehicles that meet the City's expectations and conducts bidding on behalf of the City up to an identified limit for each vehicle.
Interstate's initial contract amount was established at $50,000, under the City Manager's award authority with the expectation that two vehicles would be purchased duri...
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