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Finance Committee

Meeting Date:	03/28/2017
FROM:	City Manager

Subject:

Approve Purchase of Two Police Interceptor Utility SUVs in the Amount of $60,993.72.

RECOMMENDATION

Authorize the City to Proceed with the Purchase of two Police Interceptor Utility SUVs in the Amount of $60,993.72 (see attached Quote). However, a 2% discount will be applied if payment is processed within 20 days of delivery of vehicles bringing the total amount to $59,773.85.

BACKGROUND/DISCUSSION

The City of Brea has small volume requirements for the number of Police patrol vehicles it typically purchases annually. The Purchasing Division endeavors to find the very best cooperative agreement that ultimately provides the City of Brea with the lowest vehicle cost obtainable. As such, there are essentially seven Ford dealerships in California that are major players and actively seek to respond to bid opportunities from large agency users. The table below highlights the opportunities that were available for our utilization from the purchase in August 2016:

Dealership	Location	Original Contracting Agency	Original Contracting Quantity	Per Unit Price	Brea Total Cost for Two Units
Downtown Ford Sales	Sacramento	City of Sacramento	36	$30,275.83	$60,551.66
Wondries Fleet Group	Alhambra	City of Los Angeles	81	$30,475.55	$60,951.10
Fritts Ford	Riverside	Riverside County	25	$31,595.91	$63,191.82
Fritts Ford	Riverside	City of Riverside	4	$35,085.53	$70,171.06
Fairview Ford Sales	San Bernardino	N/A
Hemborg Ford	Norco	N/A
Raceway Ford	Riverside	N/A

Brea Municipal Code (BMC) Section 3.24.170 Cooperative Purchasing Programs states, "Purchasing of...equipment...made under a cooperative purchasing program, utilizing purchasing agreements maintained by...other public agencies are exempted from the requirements of this chapter." The advantages of utilizing the cooperative contract from Downtown Ford Sales include:

Lowest unit cost of three dealerships that actively seek bidding opportunities.
The City of Brea has had at least seven years of successful experience in purchasing such vehicles through Downtown Ford Sales.
Based on the bid information listed above, the formal bidding process would add additional time and cost to the purchasing process (up to three months) and most likely not result in a more competitive price. For example, the City of Brea would most likely receive a bid similar to the City of Riverside, which recently (May 2016) purchased only four units, if it were to seek a competitive, sealed, advertised (formal) bids for only two units. Based on the purchase of two units under the Downtown Ford Sales cooperative contract, the City of Brea would save approximately $10,000 over the expected result from a stand-alone formal bid process.

SUMMARY/FISCAL IMPACT

The total cost to purchase two new 2017 Ford Interceptor Utility (Explorer) SUVs is $60,993.72. A 2% discount will be applied if payment is processed within 20 days of delivery of vehicles, bringing the total amount to $59,773.85. Sufficient funding has been included in the FY 2016-17 budget for the Public Works Equipment Maintenance Division in Account 480-51-5161-4641.

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Alex Escobar, Equipment Division Supervisor
Concurrence: Tony Olmos, Public Works Director

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