Item Coversheet

Agenda Item - 4.e.


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 a purchase order to National Auto Fleet Group for two (2) new Public Works pickups and one (1) new Public Works utility body truck.  (Cost:  $89,219.55) (Action Item)Date:3/13/2018

OBJECTIVE

To secure City Council authorization to purchase two (2) new Public Works Department pickup trucks and one (1) new Public Works Department utility truck  from National Auto Fleet Group through the National Joint Powers Alliance (NJPA) competitive bid program, Contract #120716.

BACKGROUND

The Public Works Department is responsible for providing all city departments with safe and reliable vehicles. Recently, it was discovered that three (3) alternative fuel vehicles equipped with Compressed Natural Gas (CNG) fuel systems have fuel tanks that are no longer able to be certified and are deemed unsafe. While researching the cost to replace the tanks, it was determined that the replacement cost exceeded the vehicle’s value and under the policy guidelines require replacement. Experience has shown that the City’s buying power is enhanced through joining with other public agencies to purchase fleet vehicles and equipment.

DISCUSSION

The National Joint Powers Alliance (NJPA) nationally solicits, evaluates and awards contracts through a competitive bid process.  As a member, the City is able to utilize NJPA bid awards for equipment purchases.  Staff recommends piggybacking on the results of a recent NJPA competitive bid program, Contract #120716. The results deemed National Auto Fleet Group as the lowest responsive bid.

 

   National Auto Fleet Group                   $89,219.55*                                                                             

 

* This price includes all applicable tax and destination charges.

FINANCIAL IMPACT

The financial impact is $89,219.55 to the Fleet Management Fund. There is no impact to the General Fund. The surplus vehicles will be sold at public auction.

RECOMMENDATION

It is recommended that the City Council:

 

  • Authorize the Finance Director to issue a purchase order in the amount of $89,219.55 to National Auto Fleet Group for the purchase of two (2) new Public Works Department pickups and one (1) new Public Works Department utility truck.

 

 

 

By:  Steve Sudduth, Equipment Maintenance Supervisor