HomeMy WebLinkAbout- - Reject Bids for Purchase of Sign Service - 11/16/2010CITY COUNCIL AGENDA REPORT
MEETING DATE: NOVEMBER 16, 2010 ITEM NUMBER:
SUBJECT: REJECT BIDS FOR THE PURCHASE OF A SIGN SERVICE TRUCK
DATE: NOVEMBER 4, 2010
FROM: PUBLIC SERVICES DEPARTMENT - MAINTENANCE SERVICES DIVISION
PRESENTATION BY: PETER NAGHAVI, PUBLIC SERVICES DIRECTOR
FOR FURTHER INFORMATION CONTACT: BRUCE HARTLEY (714) 754-5123
DEBBIE CASPER (714) 754-5212
RECOMMENDATION
Reject the bids for Formal Bid No. 1140 for the purchase of a sign service truck and
authorize City staff to modify an existing vehicle to perform the sign maintenance function
at a cost not to exceed $28,000.
BACKGROUND
The current sign maintenance truck is a 1989 model year with approximately 123,000
miles. Due to its duty assignment, this vehicle's engine has a very high number of idling
hours; typically estimated at double the vehicle miles. The vehicle is what is considered
a `gross polluter' by the Air Quality Management District due to the excessively worn
condition of the engine and the outdated emission control systems typical of its
manufacture date. The specialized utility body on this vehicle is rusted out in several
areas and the tool compartments leak water due to worn doors. The newer vehicle
proposed to be converted from the existing fleet is a 2007 model year, propane -
powered truck platform. It is considered by the California Air Resources Board to be an
alternative fuel vehicle and meets all the current `clean air' regulations for municipal
fleets.
Included in the 2010-11 Adopted Budget, was funding for the replacement of a sign
service truck utilized by the Public Services Department's Maintenance Services
Division to install, maintain and repair traffic signs throughout the City. The Purchasing
Division conducted a formal bid process to secure the lowest pricing available for this
custom-built vehicle. On October 4, 2010, seven submittals were received, opened and
read by the Deputy City Clerk.
The City of Costa Mesa Municipal Code Title 15, Chapter V, Article 2, Section 2-171(e),
allows for a 5% reduction in bid amount for Costa Mesa vendors when comparing bids
of vendors outside the City. Bids were evaluated in adherence to "City of Costa Mesa
Vendor's Preference" resolution. The bid tabulation is provided in Attachment 1. Based
on the tabulation and in accordance with the City of Costa Mesa Vendor Preference, the
lowest responsible bidder was Theodore Robins Ford. The amount used for analysis
was $72,330.48; however the amount of the bid submitted was $75,815.78.
ANALYSIS
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With consideration given to the continued financial challenges of the City, the Public
Services Department has developed a more cost effective alternative to purchasing a
new replacement vehicle. The City fleet of vehicles currently has a vehicle of similar
size and specification as the vehicle being replaced, with the exception of the custom
body on the existing vehicle. Last year, the Mobile Recreation program was eliminated.
The custom-built vehicle that was designed specifically for that purpose had an initial
purchase price of $82,574.13 in 2008. Following the elimination of the program through
the budget process, the vehicle has been stored unused in the City's Corporation Yard.
Staff from the City's Fleet Services Section have analyzed the Mobile Recreation
vehicle and the sign maintenance truck and have obtained cost quotes on modifying the
Mobile Recreation vehicle to accept the utility body from the existing sign truck. The
sign maintenance body would be renovated and installed on the unutilized vehicle at a
cost of approximately $28,000. This alternative would result in a nearly new vehicle for
the Traffic Operations Section and would save the City $47,815.78 when compared to
the cost of the new vehicle. The custom-built Mobile Recreation body would be stored
at the Corporation Yard. Should the program be restored in the future, a new chassis
could be purchased to accommodate the recreation body.
ALTERNATIVES CONSIDERED
The City Council could award the contract for the purchase of a sign maintenance truck
to Theodore Robins Ford in the amount of $75,815.78.
FISCAL REVIEW
The FY 10-11 budget includes funding for the purchase of the sign service truck from
the Equipment Replacement Fund. The total cost for the truck, if purchased new is
$75,815.78. The budgeted amount for this vehicle is $73,000.00. The cost for
modifying an existing vehicle to perform the sign maintenance function in the
Maintenance Services Division would cost approximately $28,000, yielding a savings of
$47,815.78 as compared to the lowest bid price received.
LEGAL REVIEW
There is no legal review required on this item.
CONCLUSION
Staff recommends City Council reject the bids for the purchase of the sign service truck
from Theodore Robins Ford in the amount of $75,815.78 and authorize staff to modify
existing City vehicles to perform the needed function at a cost not to exceed $28,000.
E
PETER NAGHAVI, DIRECTOR
Department of Public Services
COLLEEN O'DONOGHUE
Acting Finance Director
ATTACHMENT: Bid Tabulation
Distribution: City Clerk
BRUCE HARTLEY
Maintenance Services Manager
DEBBIE CASPER, C.P.M., CPPB
Purchasing Supervisor
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