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HomeMy WebLinkAboutItem 11j - Purschase of a Pickup TruckPurchase Order for Pickup Truck July 18, 2023 Page 1 of 3 DATE: July 18, 2023 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: John Corona, Utilities Superintendent SUBJECT: REJECT LOW BID FROM UAG CERRITOS I, LLC DBA PENSKE CHEVROLET AND APPROVE A PURCHASE ORDER WITH MOUNTAIN VIEW CHEVROLET FOR THE PURCHASE OF ONE 2023 CHEVROLET SILVERADO 1500 PICKUP TRUCK IN THE AMOUNT OF $56,423.60 CEQA: Not a Project Recommendation: Approve SUMMARY The Fiscal Year 2023-24 Equipment Acquisition Budget provides for the replacement of one 1/2-ton pickup truck for the Public Works Services Department (“PWSD”) that meets the criteria for replacement in the Vehicle Replacement Program. To ensure that the City is receiving the most competitive price, a formal bid process was conducted. UAG Cerritos I, LLC dba Penske Chevrolet submitted the lowest bid. During the evaluation process, it was discovered that UAG Cerritos I, LLC dba Penske Chevrolet provided a bid for one 2024 model year truck rather than the 2023 model year requested. Mountain View Chevrolet was the second lowest bid received, which was determined to be responsive. It is recommended that the City Council reject the low bid submitted by UAG Cerritos I, LLC dba Penske Chevrolet and approve a Purchase Order with Mountain View Chevrolet for the purchase of one 2023 Chevrolet Silverado 1500 pickup truck in the amount of $56,423.60. BACKGROUND The Fiscal Year 2023-24 Equipment Acquisition Budget provides for the replacement of one 1/2-ton pickup truck for the PWSD. The 2005 Chevrolet 1500 pickup truck, asset #80216, experienced a catastrophic failure of its early generation hybrid drive system. Replacement parts are obsolete and were not available to repair this vehicle. The lack of available repair parts forced premature replacement of this vehicle, which had 91,801 miles at the time of the catastrophic failure. Purchase Order for Pickup Truck July 18, 2023 Page 2 of 3 DISCUSSION A Notice Inviting Bids was published in accordance with City Council Resolution No. 7483 and bid packages were distributed to local dealerships who provide this type of vehicle. Two bids were received with the following results: Bidder Location Bid Amount UAG Cerritos I, LLC dba Penske Chevrolet Cerritos, CA $54,723.12 Mountain View Chevrolet Upland, CA $56,423.60 Although bid documents were sent to various dealerships, only two bids were received. An inquiry was conducted into the reasons that the dealerships solicited for this bid did not submit a bid. Reasons provided included not having sufficient time to submit a bid or no interest in submitting a bid for this vehicle. After careful review and consideration, the bid documents were reviewed for content and the dealerships’ background was investigated. During the review process, staff discovered that UAG Cerritos I, LLC dba Penske Chevrolet provided a bid for a 2024 model year truck rather than the 2023 model year specified in the bid specifications. City staff contacted UAG Cerritos I, LLC dba Penske Chevrolet to confirm the model year of the vehicle submitted in their bid, and a representative confirmed that 2024 was correct. Since the bid documents clearly stated that the request was for a 2023 model year truck, UAG Cerritos I, LLC dba Penske Chevrolet is considered non-responsive and should be rejected. Importantly, the 2024 model year truck will not be available to the City as soon as the 2023 model truck, which is available for immediate delivery and was the reason the City requested bids for a 2023 model. The second low bidder, Mountain View Chevrolet is considered the lowest responsive bidder. The bid submitted by Mountain View Chevrolet was reviewed and the dealership’s background investigated. Based on this review, it has been determined that Mountain View Chevrolet is the lowest responsive bidder that met the City’s required specifications. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT The total purchase cost for the vehicle is $56,423.60. Funds in the amount of $60,900 have been budgeted in the Fiscal Year 2023-24 Equipment Replacement Budget. Purchase Order for Pickup Truck July 18, 2023 Page 3 of 3 RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project, and therefore, is exempt under the California Environmental Quality Act (“CEQA”); and reject the low bid from UAG Cerritos I, LLC dba Penske Chevrolet and approve a Purchase Order with Mountain View Chevrolet for the purchase of one 2023 Chevrolet Silverado 1500 pickup truck in the amount of $56,423.60.