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Home My WebLink About39-Purchasing . . CITY OP SAN _RNt"DlNO. - R.QWST PC"<< COUNciL ACTION ~ '~ram: Dean R. Meech, purchasing Agent Su~: Procurement of Police Patrol Vehicles ~: Purchasing 0...:. March 28. 1990;;; Bid: SF-39 SyIlCIpIia of PI..IlIlI' Councif 1Ction: None , "-nllllllClld motion: ... r ~ j Adopt Resolution (one of three options. background in staff report) 2~,,~ Dean R. Meech SignltUre ContllCt penon: Dean R. Meech. PurchasinG Aaent Phone: 384-5085 Supporting dIUI.lr.chld: Ves Ward: (158,089.35 N/A FUNDING REQUIREMENTS: Amount:_ "'---- .- .-- - Source: IAcct. No.l 001-213-5-5041 IAcct. Descriotion I Police Patrol Vehicles Finance: (~() rJ Council Notes: Agenda Item No 3~ 75..0212 ......-- ..... . CITY OF SAN BERN~DINO - RSQUSST Pf"'q COUNciL ACTION , STAFF REPORT .....~~ 1r ,\,;00. CITY ADMINISTRATOR'S STAPF REPORT The a~1:ached S1:aff Report for Purcha.iftlJ ou~lin_ a ""...~ of optioD8 for purchasinq Police Pa~rol vehicl_. After analy.i. by the Finance Departmen~ and this office, the followiftlJ i. recommended: Authorize purcha.e of 28 vehicle., with the extended HZ'Yice plan: $11,732.19 Ba.e Price 791.52 Sale. Tax 650.00 Extended Service $13,173.71 Total per unit The total amount of purcha.e will be $368,863.88. A8 Mr. Keech .et. forth in his Staff Report, the ci~y 1KIW.d , probably be able to forestall the annual inflation t~~ by .... buyinq lIore vehicles at this tille. COD8iderinq the City'. current budqet situation, it appear. appropriate to tab advantaqe of the price situation and to purchase 1990-91 replacement units toqether with tho.e authorized for 1989-90. It is on this basis that the purcha.e of 28 vehicle. i. beinq recommended. Attachment 75-0264 -""- CITY OF SAN BERNA,ADINO _ REQUEST FO" COUNCIL ACTION STAFF REPORT SF-39 Proposed Act1 on :' ,-: Authorize the p~hase of twelve (12) or sixteen (16) new police vehicles. . Background: The proposed purchase is for twelve (12) or sixteen (16) police patrol vehicles to be utilized in daily patrol operations of the Police DepartDent. Procurement at this time and in this manner is consistent with the acquisition schedule for replacement of this type of vehicle. The authorization for twelve (12) police patrol vehicles was given earlier in the year (September 26, 1989). this was an esti..te of need at that ti... The Police Departlnent (Capt. L. Richards) has asked the Purchasing Agent to request four (4) additional police patrol vehicles for a total of sixteen (16), enabling the police force to accommodate additional ..npower and place a full comp1.tment of black and white patrol vehicles in the field. The City and the County joined together to affect a one hundred (100) vehicle unit discount price from Ford Motor Company this year. The following is a summary of Bids received: State County/City Bid R-58 (second) Hemborg Ford $12,873.45 11,298.00 Enterprise Chevrolet 12,816.21 -1- 5.0264 1 > Less tax less tax Unacceptable Bid *Vendor failed to sign bid. Vendor had mathematical errors in his pricing. County bid requires all bi ds to be authenti cated by signature same as the City requirements. Without special paint requirement Less tax Unacceptable Bid *Vendor took many excepti ons to bid requirements. This manufacturer is not acceptable per Council Action of March 1988, Resol uti on 88-97 and Council Acti on of February 1989. Resolution 89-65. Without special paint requirement c ~, ,,-, Fritts Ford 11.806.00 Less tax Unacceptable Bid *Vendor fa11ed to . meet specifications. In the special instructions to vendor, the vendor did not commit to specific questions asked in technical specification. Without special paint requirement Yucca Valley Ford 12.755.00 Less tax Acceptable Bid With special paint requirement. Wilnix Ford 11.732.19 Less tax Acceptable Bid With special paint requirelent. The total cost of the vehicles (using the bid of Wilnix Ford) is as follows: 1 unit $11.732.19 791.52 Tax (upon delivery the tax rate will be 6.751) $12. 524 .12 each t Twelve (12) units Sixteen (16) units $150.289.35 $200.385.92 Base warranty 12 month.12,OOO miles, 1001 parts/labor no charge. Power transmission warranty 6 years. 60.000 miles. $100.00 deductible after first 12 months or 12.000 miles. All warranties start from vehicle "in service date." The Fleet Manager opted for the extended service plan of "Esp Total" at $650.00 per vehicle for 3 years or 100.000 miles. whichever occurs first. $650 x 12 = $ 7.800.00 $650 x 16 = $10,400.00 Vehicle cost: 12 units $150.289.35 plus Service Plan $ 7,800 =.$158.089.35 16 units $200,385.92 plus Service Plan $10,400 = $210.785.92 If Council chooses to buy the original twelve (12) vehicles only, specfficati ons have been revi ewed wi th the Fl eet Manager who concurs that the bid of Wilnix Ford meets the specifications and requirements. It is therefore recommended that the bid be accepted for contract. The equipment funding is in the 1989/90 budget. -2- . '" IlaMev... . . . /'"' '-' ." '-'I. the CGIPIt~, between Ford Motor Company and General Motors Corporation in the Sta~d created a unique situation this year. ~-.r,;, The concessions allowed this time is extr...ly high. Historically, no concession has ever been this high. The parties involved in this type of activi ty , the Ci ty , the County, and dealers are of the opi ni on that chances are this concession level will not occur again in the near future. If the City was to buy its 1991)/9t compliment of twenty (20) police patrol vehicles requested by the police department. A $42,000 savings could occur on behalf of the City. The concession savings is based on a concession of $2,050 given to dealers before the State Bid competition. A concession of $3,800 was given to dealers after the competition. The difference of $1,750 additional savings ti... the 24 vehicles (4 additional and 20 next year's requirement) equals $42,000 saved. The extra 4 vehicles requested this year and the next year compli...nt of 20 t vehicles could be financed through U.S. Municipal Financing, an affiliate of '. Ford Motor Credit Company, at an interest rate of 7.581. Vehicle delivery will be approximately 120 days A.R.O. Council is aware the last two times for procurement of police vehicles the allocation was very low. With the opportunity to catch up the vehicle compliment at an unusual savings to the City is something the. Council should consider. Therefore. . . Option #1 Option #2 Option #3 purchase the 12 vehicles authorized earlier 12 units $150,289.35 plus Service Plan $ 7,800 = $158,089.35 total cost (funded). purchase the 12 plus 4 additional requested by the Police Department 16 units $200,385.92 plus Service Plan $10,400 = $210,785.92 total cost. Purchase all 36 on a lease purchase the 12 approved, the 4 additional requested, and the 20 requested for the coming year. 36 units $450,868.32 plus Service Plan $23,400.00 = $474,268.32 total vehicle cost. A. Two (2) years semi-annual payments of $125,236.15 For a total payout of $500,945.30 B. Three (3) years semi-annual payments of $86,573.35 For a total payout of $519,441.47 -3- c '''"-' A and B above .7.751 interest with setnf-annual pa~nts YS 7.701 interest with qu~lY':m-nts (vendor proposal letter). Interest rates have been negotiated ~ to 7.551 for 2 years and 7.581 for 3 years (recORDended). '. ' By financing the police vehicles this year and next the City gets more bang ,for the budget buck. The City is acquiring ownership with each payment. The City can leverage its budget by financing instead of paying cash. The lease purchase contract does not create a debt obligation, lease payments are budgeted annually as an operating expense rather than as a capital expenditure and the interest payments are tax exempt. NOTE: A. All vehicles will be 1991 models regardless of the nUlber of vehicles and/or which option chosen. B. Option 3 would allow the possibility of not going to bid the foll~ng budget year (1991/92). /?~~ Dean R. Meech, Purchasing Agent Attachments: Alternate proposal Wilnix Ford -4- I 1 1 2 3 4 5. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 o /--~ RESOWTION NO. '-.,../ ION OF THE CITY OF SAN BERNARDINO AWARDING A PUR- ,'%JtD6 NIX FORD FOR THE FURNISHING AND DELIVERY OF " t28) POLICE CARS, TO BE UTILIZED BY THE POLICE ,~~ ACCORDANCE WITH BID SPECIFICATION SF-39. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS. SECTION 1. That Will Nix Ford is the lowest and best responsible bidder for the furnishing and delivery of twenty- eight (28) police cars in accordance with Bid Specification SF- 39 for the total amount of $368,863.88: pursuant to this deter- mination, the Purchasing Agent is hereby authorized and directed .,-i- to issue a purchase order for said twenty-eight (28) police c.rs to said lowest and best responsible bidder: such awal..8hall only be effective upon the issuance of a Purchase Order' the ~ ~ Purchasing Agent: and all other quotations therefore are "hereby rejected. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bern- ardino at a meeting thereof, held on the day of by the following vote, to wit: , 1990, AYES: Council Members NAYS: ABSENT: 26 27 28/1111 05129/90 city Clerk -1- I! REsoLUTION OF THE CITY OF SAN BERNARDINO AWARDING A PURCHASE TO I WILL NIX FORD FOR THE FURNISHING AND DELIVERY OF TWENTY-EIGHT (28) POLICE 'jRS, TO BE UTILIZED BY THE ')LICE DEPARTMENT IN ACCORDANCE W~~H BID SPECIFICATION SF-39. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .....'...::.JI,.,. ~.~,. foregoing resolution is hereby approved this 0'" ..:...- I 1990. "..'~ ' , .." ~',-. :~.~ -f. W.R. Holcomb Mayor City of San Bernardino Approved as to form and legal content: '." t 5/29/90 -.2- . . CITY OF SAN BERCARDINO - REQUEST:..)OR COUNCIL ACTION From: Dean R. Meech, Purchasing Agent Subject: Procurement of Police Patrol Vehicles Dept: Purchasing Dete: March 28, 1990 8id: SF-39 Synopsis of Previous Council action: None Recommended motion: Adopt Resolution 2~<,~~ Dean R. Meech Signature Contact person: Dean R. Meech. PurchasinQ AQent Phone: 384-5085 Supporting data attached: Yes Ward: Q58,089.35 N/A FUNDING REQUIREMENTS: Amount:~ ~_-....- .-- - Source: (Acct. No.! 001-213-5-5041 (Acct. DescriDtidn) Police Patrol Vehicles Finance: (Jv~ r),..J Council Notes: Agenda Item No .3tf . 'CITY OF SAN BERQRDINO - REQUEST~R COUNCIL ACTION STAFF REPORT CITY ADMINI TRATOR'S STAFF R PORT The attached options for analysis by following is Staff Report for purchasing Poli the Finance Dep recommended: Authorize plan: purchase of 28 vehicl $11,732.19 Bas 791. 52 Sal 650.00 Ext $13,173.71 Tot rchasing outlines a number of e Patrol vehicles. After rtment and this office, the s, with the extended Price s Tax nded Service 1 per unit service The total amount of purchase wi 1 be $368,863.88. As Mr. Meech sets forth in his probably be able to forestall t buying more vehicles at this current budget situation, it advantage of the price situa replacement units together with It is on this basis that the pu recommended. Attachment 75-0264 Staff Report, the City would e annual inflation impact by ime. Considering the City's appears appropriate to take ion and to purchase 1990-91 those authorized for 1989-90. chase of 28 vehicles is being CITy' OF SAN BERNCRDINO - REQUEST C)R COUNCIL ACTION STAFF REPORT SF-39 Proposed Action: Authorize the purchase of twelve (12) or sixteen (16) new police vehicles. Background: The proposed purchase is for twelve (12) or sixteen (16) police patrol vehicles to be utilized in daily patrol operations of the Police Department. Procurement at this time and in this manner is consistent with the acquisition schedule for replacement of this type of vehicle. The authorization for twelve (12) police patrol vehicles was given earlier in the year (September 26, 1989). this was an estimate of need at that time. The Pol i ce Department (Capt. L. Ri chards) has asked the Purchasi ng Agent to request four (4) additional police patrol vehicles for a total of sixteen (16), enabling the police force to accommodate additional manpower and place a full compliment of black and white patrol vehicles in the field. The City and the County joined together to affect a one hundred (100) vehicle unit discount price from Ford Motor Company this year. The following is a summary of Bids received: State $12,873.45 County/City Bid R-58 (second) Hemborg Ford 11,298.00 Enterprise Chevrolet 12,816.21 -1- 75_0264 Less tax Less tax Unacceptable Bid *Vendor failed to sign bid. Vendor had mathematical errors in his pricing. County bid requires all bi ds to be authenti cated by signature same as the City requirements. Without special paint requirement Less tax Unacceptable Bid *Vendor took many exceptions to bid requirements. This manufacturer is not acceptable per Council Action of March 1988, Resolution 88-97 and Council Action of February 1989, Resolution 89-65. Without special paint requirement . c ."1 J -...,.... Fritts Ford 11,806.00 Less tax Unacceptable Bid *Vendor failed to meet specifications. In the special instructions to vendor, the vendor did not commit to specific questions asked in technical specification. Without special paint requirement Yucca Valley Ford 12,755.00 Less tax Acceptable Bid With special paint requirement. Wilnix Ford 11.732.19 Less tax Acceptable Bid With special paint requirement. The total cost of the vehicles (using the bid of Wilnix Ford) is as follows: 1 unit $11,732.19 791.52 Tax (upon delivery the tax rate will be 6.75%) $12,524.12 each Twelve (12) units Sixteen (16) units $150,289.35 $200,385.92 Base warranty 12 month,12,000 miles, 100% parts/labor no charge. Power transmi ssi on warranty 6 years, 60,000 mi 1 es, $100.00 deducti ble after first 12 months or 12,000 miles. All warranties start from vehicle "in service date." The Fleet Manager opted for the extended service plan of "Esp Total" at $650.00 per vehicle for 3 years or 100,000 miles, whichever occurs first. $650 x 12 = $ 7,800.00 $650 x 16 = $10,400.00 Vehicle cost: 12 units $150,289.35 plus Service Plan $ 7,800 = $158,089.35 16 units $200,385.92 plus Service Plan $10,400 = $210,785.92 If Council chooses to buy the original twelve (12) vehicles only, specifications have been reviewed with the Fleet Manager who concurs that the bid of Wilnix Ford meets the specifications and requirements. It is therefore recommended that the bid be accepted for contract. The equipment funding is in the 1989/90 budget. -2- . However... c .', ...-" the competition between Ford Motor Company and General Motors Corporation in the State bid created a unique situation this year. The concessions allowed this time is extremely high. Historically, no concession has ever been this high. The parties involved in this type of activity, the City, the County, and dealers are of the opinion that chances are this concession level will not occur again in the near future. If the City was to buy its 1991)/9t compliment of twenty (20) police patrol vehicles requested by the police department. A $42,000 savings could occur on behalf of the City. The concession savings is based on a concession of $2,050 given to dealers before the State Bid competition. A concession of $3,800 was given to dealers after the competition. The difference of $1,750 additional savings times the 24 vehicles (4 additional and 20 next year's requirement) equals $42,000 saved. The extra 4 vehicles requested this year and the next year compliment of 20 vehicles could be financed through U.S. Municipal Financing, an affiliate of Ford Motor Credit Company, at an interest rate of 7.58%. Vehicle delivery will be approximately 120 days A.R.O. Council is aware the last two times for procurement of police vehicles the allocation was very low. With the opportunity to catch up the vehicle compliment at an unusual savings to the City is something the Council should consider. Therefore. . . Option #1 Option #2 Option #3 purchase the 12 vehicles authorized earlier 12 units $150,289.35 plus Service Plan $ 7,800 = $158,089.35 total cost (funded). purchase the 12 plus 4 additional requested by the Police Department 16 units $200,385.92 plus Service Plan $10,400 = $210,785.92 total cost. Purchase all 36 on a lease purchase the 12 approved, the 4 additional requested, and the 20 requested for the coming year. 36 units $450,868.32 plus Service Plan $23,400.00 = $474,268.32 total vehicle cost. A. Two (2) years semi-annual payments of $125,236.15 For a total payout of $500,945.30 B. Three (3) years semi-annual payments of $86,573.35 For a total payout of $519,441.47 -3- , . c J A and B above was 7.75% interest with semi-annual payments vs 7.70% interest wi th quarterly payments (vendor proposal 1 etter). Interest rates have been negotiated downward to 7.55% for 2 years and 7.58% for 3 years (recommended). By fi nanci ng the pol ice vehi cl es thi s year and next the Ci ty gets more bang for the budget buck. The City is acquiring ownership with each payment. The City can leverage its budget by financing instead of paying cash. The lease purchase contract does not create a debt obligation, lease payments are budgeted annually as an operating expense rather than as a capital expenditure and the interest payments are tax exempt. NOTE: A. All vehicles will be 1991 models regardless of the number of vehicles and/or which option chosen. B. Option 3 would allow the possibility of not going to bid the fOllowing budget year (1991/92). a~~ Dean R. Meech, Purchasing Agent Attachments: Alternate proposal Wilnix Ford -4- .' , 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 , c 'H_". RESOULUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDING A PUR- CHASB TO WILL NIX FORD FOR THE FURNISHING AND DELIVERY OF TWENTY~EIGHT (28) POLICE CARS, TO BE UTILIZED BY THE POLICE DEPARTMENT IN ACCORDANCE WITH BID SPECIFICATION SF-39. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS. SECTION 1. That will Nix Ford is the lowest and best responsible bidder for the furnishing and devilvery of twenty- eight (28) police cars in accordance with Bid Specification SF- 39 for the total amount of $368,863.881 pursuant to this deter- mination, the Purchasing Agent is hereby authorized and directed to issue a purchase order for said twenty-eight (28) police cars to said lowest and best responsible bidder 1 such award shall only be effective upon the issuance of a Purchase Order by the Purchasing Agent1 and all other quotations therefor are hereby rejected. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bern- ardino at a meeting thereof, held on the day of , 1990, by the followig vote, to wit: 21 22 23 24 25 26 27 28 IIII I I I I I I I I Council Members AYES: NAYS: ABSENT: City Clerk I I I I I I I I I I I I .. I . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 RESOLUTION OF THE CITY OF SAN BERNARDINO AWARDiNG A ~UKCHA~~ VKU~K TO WILL NIX ~D FOR THE FURNISHING AND ,LIVERY OF TWENTY-EIGHT (28) POLICE '-tRs TO BE UTILIZED BY THE P\:,,,ICE DEPARTMENT IN ACCORDANCE WITH BID SPECIFICATION SF-39. The foreqoinq resolution is hereby approved this of , 1990. W.R. Holcomb Mayor city of San Bernardino Approved as to form and leqal content: city Attorney 25 I I I I I I I I I I I I I I I I 261111 271111 28 5-29-90 2