| | | | | | | | Agenda Item - 4.f.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | William E. Murray
| | Dept.: | City Manager
| Dept.: | Public Works
| | Subject: | Authorize issuance of purchase orders to Simpson Chevrolet, Selman Chevrolet and DeLillo Chevrolet for auto parts to repair City vehicles. (Cost: $150,000 per year.) (Action Item) | Date: | 7/10/2018 |
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| | | | | | | | OBJECTIVE
For the City Council to authorize the Finance Director to issue purchase orders to Simpson Chevrolet, Selman Chevrolet, and DeLillo Chevrolet for the purchase of Chevrolet parts to repair City vehicles.
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| | | | | | | | BACKGROUND
The Public Works Department Vehicle Maintenance Division is responsible for maintaining the City’s fleet of Chevrolet vehicles. The fleet routinely requires parts that are only distributed by Chevrolet dealers. To expedite the repair process it is essential that Public Works have the ability to purchase these items from more than one vendor. The lowest bidder, Simpson Chevrolet, will be designated as the primary vendor. Selman Chevrolet and DeLillo Chevrolet will be the second and third vendors utilized.
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| | | | | | | | DISCUSSION
Specifications were prepared and sent to prospective bidders. The variety and quantity of Chevrolet parts quoted was limited to simplify the bidding process. Specifications included eight (8) Chevrolet parts that are used on a regular basis. The bid process included a two percent Local Merchants Preference, and per Garden Grove Municipal Code 2.50.110(d), Simpson Chevrolet was deemed to be the lowest bidder, which qualifies Simpson Chevrolet as a primary source for parts and the two remaining bidders as back up sources for parts.
Simpson Chevrolet $5,054.47-$101.09 (2%) = $4,953.38
Garden Grove, CA
Selman Chevrolet $4,982.46
Orange, CA
DeLillo Chevrolet $5,035.86
Huntington Beach, CA |
| | | | | | | | FINANCIAL IMPACT
The financial impact to the Fleet Management Fund would be $150,000 per year for five (5) years. There is no impact to the General Fund. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Authorize the Finance Director to issue three (3) purchase orders for Chevrolet auto parts in a fixed amount collectively not to exceed $150,000 per year for five (5) years to be divided between Simpson Chevrolet, Selman Chevrolet, and DeLillo Chevrolet as needed.
By: Steve Sudduth, Equipment Maintenance Supervisor
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