CITY COUNCIL ACTION REQUEST
Department(s):
Finance
CEQA: Not a Project, File
No. PP17-003,
Agreements/Contracts (New
or Amended) resulting in no
physical changes to the
environment.
Coordination:
City Attorney’s Office; City
Manager’s Budget Office;
Department of Public Works
Dept. Approval:
/s/
Rick Bruneau
Council District(s):
Citywide
CMO Approval:
9/11/23
SUBJECT: ACTIONS RELATED TO THE PURCHASE ORDERS WITH TSC MOTORS, INC. FOR AS REQUIRED NEW RAM 3500 AND 5500 VEHICLE PURCHASES
RECOMMENDATION:
Adopt a resolution authorizing the City Manager or designee to:
a) Amend purchase orders OP 63227 and OP 63229 with TSC Motors Inc. dba Chrysler Dodge Jeep Ram Morgan Hill (Morgan Hill, CA) for as required new Ram 3500 and 5500 Tradesman vehicle purchases to increase the total compensation by $1,140,000, for a combined maximum compensation not-to- exceed $4,000,000 for the period ending on or about March 9, 2024; and b) Exercise up to four one-year options to extend the term of the purchase orders with the last option ending on or about March 9, 2028, subject to the appropriation of funds.
Desired Outcome: Authorizing the City Manager to take this action gives the City the ability to order these vehicles as needed.
BASIS FOR RECOMMENDATION:
The Fleet Management Division, Department of Public Works, is responsible for overseeing the City’s vehicle fleet. The City requires new pick-up and service trucks to replace existing equipment due to age and utilization. There is currently a backlog of pick-up and service trucks due for replacement. New vehicles will help to minimize department operational impacts and are essential for the delivery of various City services.
In January 2023, two competitive Requests for Bids (one for Ram 3500 and other for Ram 5500) were released by the Finance Department to procure these products. One responsive bid was submitted for each solicitation, and no protests were received. The sole bidder did not apply for the City’s local or small business preferences. In March 2023, staff awarded both bids to TSC Motors Inc. dba Chrysler Dodge Jeep Ram Morgan Hill as the only, responsive, and responsible bidder pursuant to the bidding procedures of the San José Municipal Code, Section 4.12.310B under City Manager authority. Additional funds are now required due to the increased demand for new vehicles throughout the City. Approval of this recommendation ensures the City continues to receive these essential vehicles with minimal impact to operations.
Commission Recommendation/Input: There is no commission recommendation or input associated with this action.
COST AND FUNDING SOURCE:
An additional $1,140,000 is being requested for as-needed vehicle purchases for the period ending March 9, 2024. Products to be provided under these purchase orders will be managed by the Department of Public Works on behalf of various City departments. The Department of Public Works will be responsible for payment and will charge department(s) directly for all purchases. Cost and funding source(s) will vary depending on department vehicle requirements and will be subject to sufficient appropriation of funds.
FOR QUESTIONS CONTACT: Albie Udom, Deputy Director of Finance – Purchasing & Risk Management, at [email protected].
COUNCIL AGENDA: 9/26/23
FILE: 23-1271
ITEM: 2.12