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Home My WebLink About1985-09-10; City Council; 8324; Purchase of Used Vehiclesz 0 ~ _, u z ::::, 8 CIT-F CARLSBAD -AGEND~ILL AB# 8'3-< i MTG. 2-10-85 DEPT ..... P ..... C .... H __ IlI.L.E; RECOMMENDED ACTION: PURCHASE OF USED VEHICLES CITYA CITYMGR.1ht_ Approve Resolution No. ?J 72 , authorizing the Purchasing Officer to utilize the Open Market Procedures for the purchase of used vehicles. ITEM EXPLANATION In December 1978, the City Manager issued Administrative Order No. 3 - Automotive Vehicles and Equipment. Section 3, Acquisition, (6) states "Whenever feasible, the purchase of used rental fleet vehicles for City use srould be evaluated. This option should be analyzed to determine if the purchase of used vehicles will result in significant cost savings over the life cycle of the vehicle." The City has purchased used vehicles for a number of years. Low mileage used vehicles have proven to be satisfactory to the user departments and have resulted in a significant cost savings to the City. Staff of the Utilities/Maintenance Department estimates there is a 15 -20% savings when purchasing used vehicles. Also, there is immediate delivery for used vehicles c9111pared to 60 -120 day delivery for new vehicles that have to be ordered. In the past, .wien we have used the formal bidding procedures for used vehicles costing more than $10,000 or several used vehicles at one time when the total cost exceeds $10,000, the response fran the dealers and the selection of vehicles has been very limited. Because of th, .. length of time involv~d in formal bidding ( six weeks} and the limited response fr.an car dealers, it is recommended the open market procedures (Carlsbad Municipal Code Section 3,28. 130) be used for the purchase of used vehicles. The open market procedure requires three quotations, ~enever possible, and the award is made to the lowest responsive bid which, based on total cost, is most advantageous to the City. \W\en purchasing used vehicles using the open market procedures, written quotations will be obtained and inspection of the vehicles by the Equipment Maintenance ·Superintendent will be required before a decision ls made to purchase the vehicles. FISCAL It-PACT The 1985-86 Vehicle Replacement Budget includes $88,947 for the purchase of nine used vehicles, one compact, three intermediate and five full size sedans. EXHIBITS 1. Resolution No. 1{[ 1CJ· 2. Memorandum fran Utilities/Maintenance Director dated :July 10, 1985. 3. Summary of used vehicles purchased in 1983-84 and 1984-84 -Exhibit A. 4. Vehicle Replacement Summary 1985-86 -Exh~bit B. ---✓-- J. 2 3 4 .. .. RES>LUTION NO. 8179 A RF.SOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHOOIZING THE OPEN K\Rl<ET PROCEDOOES TO BE USED FOR THE PURCHASE OF USED VEHICLES. --WHEREAS, -the City has estcmlished the desirability ?>f" purchasing used 5 vehicles. 6 ~ERfAS, the formal bidding process is not in the best interest of the 7 City. 8 ~ERfAS,. the use of the Open Market Procedures is appropriate for the 9 purchase of used vehicles. 10 NOW, THEREFORE, BE IT RESOLVED by the City Council of the Carlsbad, ll California, as follows: 12 13 1. That the cm·ove recitations are true and correct. 2. That the Purchasing Of fleer is hereby authorized to use the Open Market 14 Procedures for the purchase of used vehicles. 3. That this Resolution shall be effective upon the effective date of 16 Ord inane~ No. 1283 17 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Carlsbad City 18 Conell held on the 10th day of September 19 •vote, to wit: , 1985, by the following AYES: N<ES: Co,mcil Members easier, Iewis, Kulchin, Chick and Pettine None 20 21 22 23 AB.5ENT: None 24 ~ER, Mayor 25. ATTEST: 26 27 A~RirfN~ 28 (SEAL) ...,, July 10, 1985 TO: PURCHASING OFFICER FROM: Director, Utilities & Maintenance OPEN MARKET VS BID PROCEDURE -USED CARS 85-094 M 071 The City has, in the past, and, it is my intent to replace selected vehicles in the fleet with high quality, fleet-managed used cars. These vehicles can be obtained from resale lots of major rental agencies (Hertz, Avis, National) and from some fleet divisions of major agencies (Dixon Ford, Encinitas Ford, Weseloh, etc.). These agencies deal in large numbers of vehicles on a rela- tively rapid turn-over which complicates use of the bid process since a vehicle, once bid, has to be available if the agency is successful, some 3 -4 weeks after solicitation. Since the agencies are interested in turn over to make a profit, they often do not bid or inflate the bid price sufficient to cover their costs of taking the vehicle: off the market for a period of time. It should be understood that the open market procedure can be an advantage to the City since it can be consummated at the time of optimal conditions - either in terms of City need or in terms of model pricing. As an example, a vehicle may have a major component failure which, if no replacement can be obtained quickly, will be repaired. It may take four weeks to twelve weeks if the replacement is bid, whereas an open market acquisition could be accomplished in 24 -72 hours based on market availability. Open market procedures, in addition to obtaining quotes, io verifiable as to "fajirness" of the price -these lnclude used car ads in the local papers, Kelly Blue book c0mparisons and phone comparisons with other sales agencies. The staff time and effort saved by using this procedure is, in my opinion, far outweighed by cost savings (if any) which might be realiz8d by formal bidding. It is recommended, therefore, that it be authorized by council action to purchase used .vehicles only by open market procedures in excess of $10,000 instead of normal formal bid procedures. RO W. GRE RW C c: Admin. Asst. U&M --· e EXHIBIT "A" LIST OF USED VEHICLES PURCHASED 1983/84 !, I ' I , l 1983 Ford Crown Victoria $9,978.32 a i ;} 1 Encinitas Ford -2/23/84 1 ! { 1983 Ford Ranger Pickup 5,915.52 I t t Encinitas Ford -10/19/83 ~ ; f ·~ ~ (2) 1982 Ford Futura Sedan 11,214.80 r Council Approved 10/18/83 .. e :! , Hertz >' ,'' ! ,, .. 1984/85 , , 1983 Ford Club Wagon $ 9,985.84 ; ,• Hertz -8/3/84 .- ; 1984 Ford Ranger Pickup 9,672.70 ,, Fritts Ford -12/20/84 1984 Ford Tempo 6,360.00 ! Hertz -12/13/84 } ' 1984 Ford Tempo 6,248.70 National Car Rental -1/4/85 1 1984 Ford Escort 6,254.00 i Hertz -1/4/85 1984 Ford Ranger Pickup 7,351.10 Fritts Ford -1/9/85 If i I I IA• 1'111 111111 - 1 2 2A 2B 2C 2D 2E 2F • 3 4 5 6 7 ~ • ' l ■l man, ILUiE11m 3 . 2 • 1 2 1 1 - l· 1 . ~-.. 1- 2 3· . . --., ,.,_,,__ ...,_ _,...,...., ,_.,,.....,"""· I ~,,,.,,..~~---~----~ ... 1985-1986 CAPITAL EXP.tNDlTURE PRIORITY skEm DEPARTMENT ·Ut111t1es/Ma1ntenance (Vehicle Replacement) • ACCOUNT M. 72-52•20-3900 I &;J (UI lEl TOTAL AIIUT : Dept/Div. IUD6ET£D DESCRJPTIOII QUARTER .( incl ship & ta:lj . 39,654 Police Patrol Sedans, CHP-type, l'OllCe r1.eld . State GHP bid 2 v Operation . PoH.ce. non-patrol sedans: ' Police Inves1 20,220· Full-size, ~sed~ .. 2 ✓ ~ Tec-h. ~vr-c:i 10,110 F.ull-size, ~s~d ✓ Police Tech 3 Ser.vices ., ✓ ··o.1.1ce .1.nvest 20,220 Full.;size, used 4 ~ Field Oper. 9,83,5 . Inte~ediate-size, used 2 ✓ Police Invest . 9,835 - Intermediate-size,. ~sed 3 ./ :>olice Invest --9,835 Intermediate-size, use~ 4 ✓ ;,olice Invest 13,198 Pick-up Truck, 3/4 ton. new 3 vi P 8, R 'T'rpoc:, v P & R. Park 11,578 Pick-uo truck 1/2 ton, new 4 6oeratinn 13,198 Pick-up truck, 3/4 ton, new 1 U&M Streets Ul!IM Water & 23,156 Pick-up Truck, 1/2 ton, new 1 St:. Lighting . Library • 27,214 ~pact Station Wagon, new 1 .Anrr.h~-.: n- ~-~Ii). ~~-/ . () -~ : . Vehicle(s) to . be replaced ·:a- A003, A007. A012 A 021 A nc:;n A 051 A UJU A 052 A 034 A 033 A 031 .l • P nc:;c;; P oc;;,; S 026 W 020 Z 080 (to Vehicle Ma Z 058 7 n,;.o 59 1 of 2 ii. I, J I I l 1 I !'I ·j • ~; ..,.,_~ 4 -· --; .. ... v.,-,-v wv-a·,NI. ..,.,_ .. ,.,.,.,,... .-n·•--•"•··-·•~t·e•-· ----------·-· ......... ----• l • ' DEPAITIEIIT •Utfltttes/Mafntenance (Vehicle Replacaaent) • • ACCGIIIT •• 72-52-20-3900 .. , ••• 11:1 IUJ IEl , . . TOTAL . ·• 1111111 . MOIIIT : . V~hicle(s). tq be. -WID IIIDIEll'D DESCi1n1111 QUAR1tl D~pt/Div. ·replaced •• r • . . : ... • (incl. ship & ta 1 ' I . :8 1 : . 8.892_ Coapact Sedan. uliecl'. 1 Bldg . Z-076A .. I . Fire·Emer. -·-9 1 ,o.ooo HICU 1 Med . ... F--092 . . . . . . . • . t I . . t • . .t~ . . . . . . . .. . .. . . -( . • • . • • MIIUI' IEM Sl_'IUIE _______ _ ' ' .. PAGE Ill). 2 of 2 I I b'" ' I I ~ I IAl IBl J1tJI 1111161 IINEII IUDGETED . 1 1 2 l 3 1 . 4 1 5 1 . 6 1 7 1 8 1 9 1 10 1 11 1 .. 12 1 1-:\ 1 . . 14 , --...::i 1985-1986 CAPITAL EXP.£flDITURE PRIORITY SHEETS VARIOUS DEPARTI1ENTS (CJ fDl " TOTAL MOUNT : Incl ~~apeing • DEScitlPTIOII DEPT. • an ax . $15,000 Truck, 1 ton 8 cyl. P&R • $15,000 Tru~k, 1 ton, stakebed dump P&R . $15,000 Truck, 1 ton, stakebed dump P&R $16.000 Truck. 1 ton. -stakebed P&R . $15,000 • Truck, 1 ton, 8 cyl. P&R $1,750 Trailer P&R $~.750 . Trailer P&R $~ Trailer P&R $8,000 Utility Vehicle P&R -. $2,500 P::it-rnl hni:i.t enQine P&R . ~11.nnn Trailer. 10 ton U&M tl'1.OOO Truck 4 whldr w/4seats Engineer• inn, tl':\ '.\M Tn~nprt-llr 1 ~ Vehirle Bld2. . tl'.\ ~Q4 Insnector's VehiGle Bld~. DIVISION "ar.k Oper. bark Oper. 0 ark Oper. "rees bark 6per. )ec. Oper. t>ark Oper. 1>ark Oper. Park Oper. AiiL . Sanitation Muni Prni. -. - • ◄ --· . REMARKS . "' -11<ep.Lace r-u.:>u - (3/4 ton pick-up trl~.:? IKeplace .t'-Ull:) (over 3/4 ton trutlc) - Additional Vehicle Additional Vehicle -Additional Vehicle -Additional Vehicle -Replace P-014 -Additional Vehicle -Replace P-047 )1 - .Replace P-10O - Additional Vehicle Additional Vehicle Additional Vehicle - Additional Vehicle - PAGE NO. ( 0 f f -7 i 1 I I :I I