Item #08
Date: June 7, 2022
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Purchase of Fire Mechanic Truck
Recommendation:
Pass a Motion to 1) Determined that it is in the best interest of the City to suspend competitive bidding and authorize the City Manager, or designee, to approve purchasing a Fire Mechanic Truck and appropriate necessary accessories not to exceed $65,000 and 2) authorize the Finance Director to make a supplemental appropriation of $37,000 to account number 10-170-5401 and to reclass the expense of $28,000 from 10-180-5301 to 10-170-5401.
Rationale for Recommendation:
The City of Marysville, following its procurement process, conducted a Request for Quote solicitation through bid specifications developed for a new Ford F-550 truck with a crane in September 2021. Lodi Truck was the only bid submitted that met the specifications and was chosen as the responsive bidder.
A down payment for the truck in the amount of $28,000 was approved in the budget fiscal year 2021/2022 with future financing payments to be included in concurrent budgets of $31,005.72.
The delivery of the truck was delayed due to the long lead time for Lodi to receive the F-550 chassis, which at earliest would be received in August of 2022, staff reviewed the specification of this vehicle and determined that a smaller and less expensive option of a ¾ ton truck with a service body and no crane would be sufficient for the operational needs of the Fire Mechanic. The City was able to cancel the order with Lodi with no further obligation from either party and to pay off the existing $119,832.40 lease with Community Leasing Partners with the existing escrow holding account of $115,323 and $4,509.40 of accrued interest and underwriting costs that were built into our original payments.
Background:
Currently, the Fire Mechanic does not have a service truck that meets the need of the job. The new service truck will allow for mobile service in the field when repairs to City vehicles and equipment are necessary. Almost three years ago, a Ford F-250 single cab pickup truck with lumber rack was purchased for the Fire Mechanic through Enterprise Fleet Management. This configuration was determined to be inadequate for the application. The current F-250 pickup will be returned to Enterprise Fleet Management once a new vehicle is received as a replacement.
Item #08
Staff has found that utilizing the formal process of soliciting bids for vehicles such as these is not currently practical or productive, since formal bids result in responses from bidders that they will provide a factory ordered unit with extremely long lead-times (approximately 6 months or more) and suitable vehicles in dealer inventories will not be held and are typically sold by the time the formal solicitation is completed. The City has received three quotes (attached) from Dow Lewis Motors, Geweke Ford, and Yuba City Dodge for new ¾ ton trucks with utility beds that are available immediately. After review of the quotes, it was determined that the quote from Dow Lewis Motors is the best value and will fulfill the needs of it’s the user.
Fiscal Analysis:
The total not to exceed cost of $65,000 includes a 2022 GMC ¾ ton 2-wheel drive extended cab with service body, lift gate, striping, lighting, and plumbing the air compressor into the service body. Staff is recommending that Council authorize the Finance Director to make a supplemental appropriation of $37,000 to account number 10-170-5401 (Vehicles & Heavy Equipment) and to reclass the expense of $28,000 from 10-180-5301 (Principal) to 10-170-5401 (Vehicles & Heavy Equipment). The proposed principal and interest payment of $31,005.72 for Fiscal Year 2022-23 would be removed. This change would overall save the City around $76,000 from the prior approved purchase.
Attachment:
1) Quotes from Dow Lewis Motors, Geweke Ford, and Yuba City Dodge.