Item Coversheet

Agenda Item - 2.e.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Scott C. Stiles

From:William E. Murray
Dept.:City Manager 

Dept.: Public Works 
Subject:

Authorize the issuance of a purchase order to Garden Grove Kia for two new sedans.  (Cost: $53,175.50) (Action Item)

Date:3/9/2021

OBJECTIVE

To secure City Council authorization for the purchase two (2) new sedans from Garden Grove Kia.

BACKGROUND

Public Works is responsible for providing safe and reliable vehicles for all City departments. The Public Works Department currently has two (2) sedans that meet the City’s guidelines for replacement that were approved for the Fiscal Year 2020/21 budget.

 

DISCUSSION

The Public Works Department uses Sourcewell to meet the bidding requirements of the City of Garden Grove’s municipal code. Sourcewell nationally solicits, evaluates and awards contracts through a competitive bid process. After receiving the quote from Sourcewell, Public Works reached out to our local Kia dealer, Garden Grove Kia, to see if they could match or beat the Sourcewell price. After an added rebate, it was determined that Garden Grove Kia could provide a lower price.

 

       Garden Grove Kia                                               $26,587.75* each

       2021 Kia K5               

       National Auto Fleet Group                                     $26,882.14* each        

       2021 Kia K5

 

      * This price includes all applicable tax and destination charges.

FINANCIAL IMPACT

There is no impact to the General Fund. The financial impact is $53,175.50 to the Fleet Management Fund. The surplus equipment 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 $53,175.50 to Garden Grove Kia for the purchase of two (2) new sedans.

 

 

By:  Steve Sudduth, Equipment Maintenance Supervisor




ATTACHMENTS:
DescriptionUpload DateTypeFile Name
Kia K5 Quote and Specs1/21/2021Backup MaterialKia_K5_Quote_and_Specs.pdf
Garden Grove Kia Quote2/22/2021Backup MaterialGarden_Grove_Kia_Quote.pdf