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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 20, 2016 <br />TITLE: <br />CONTRACT AWARD TO GUARANTY <br />CHEVROLET MOTORS, INC., A SANTA <br />ANA VENDOR, FOR ONE CHEVY TAHOE <br />SUV (SPEC. NO. 16-135) <br />{STRATEGIC PLAN NO. 6,2) <br />(SURPLUS ALLOCATION FUNDING) <br />L c <br />CITY MANAGEK <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />TWUMSAWC <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 10' Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize a one-time purchase and payment of purchase order to Guaranty Chevrolet Motors, <br />Inc. for the purchase of one Chevy Tahoe SUV in an amount not to exceed $48,435 plus a <br />contingency of $2,420 for a total amount of $50,855, subject to non -substantive changes <br />approved by the City Manager and City Attorney. <br />Project in accordance with the Council approved Surplus Allocation Plan as of October 20, 2015. <br />Department: <br />Project: <br />Category <br />Total Funding: <br />Finance and Management <br />Services Agency <br />Vehicle Replacement <br />Facilities/Assets <br />$1,300,000 <br />DISCUSSION <br />The Finance and Management Services Agency, Facilities, Fleet Maintenance and Central Stores <br />Division is responsible for the acquisition, maintenance, repair, and replacement of vehicles, <br />trucks, and maintenance equipment. The City's Vehicle Replacement Policy provides guidelines <br />and criteria for determining when vehicles need replacement. This criteria includes vehicle age, <br />mileage, maintenance costs, and safety history. As a result of reviewing the City's replacement <br />criteria, one Utility SUV purchased in 1999 with 83,000 miles has been identified for replacement. <br />For vans, sport utility vehicles, sedans and light trucks, the City has standardized on purchasing <br />Chevrolet vehicles. Of the seven auto dealerships identified within the City of Santa Ana, the City <br />has one Chevrolet dealership. In order to ensure awareness as to the City's pending bids as well <br />as the City bid process, Fleet staff have communicated and met with the local dealership on <br />numerous occasions. As a result we are able to include our local Chevrolet dealership in all <br />Invitation for Bid processes. As part of the City Council approved Local Preference Program, all <br />local vendors for such purchases receive a one percent preference when evaluating their total <br />bid. The local vendor has been successful on 80 percent on the City's past five bids for Chevrolet <br />vehicles. <br />2213-1 <br />