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HomeMy WebLinkAbout1/19/2004 - STAFF REPORTS (2) 13 DATE: January 19, 2004 TO: City Council FROM: Director of Public Works/City Engineer and Procurement and Contracting Manager RESCIND AWARD OF VEHICLE PURCHASE TO SUNSET AUTO PLAZA VIA MINUTE ORDER# 7545 AND AUTHORIZE THE PURCHASE OF ONE 2005 DEDICATED CNG TRUCK FROM CREST CHEVROLET IN THE AMOUNT OF $39, 957.22. RECOMMENDATION: That City Council rescind award of dedicated CNG truck purchase from Sunset Auto Plaza made on September 1, 2004 via Resolution#7545 and authorize the purchase from Crest Chevrolet of San Bernardino, Ca. for the same price and terms. SUMMARY: On September 1, 2004 City Council authorized the purchase of a 2005 dedicated CNG truck for use by the Public Works Department.The authorized purchase is partially funded by a Mobile Source Reduction Control (MSRC) grant which is administered by the South Coast Air Quality Management District. Our approved allocation from the grant is$16,750. The dealership who won the award did not hold the necessary manufacturer certifications to sell and service dedicated CNG vehicles and the order was denied by General Motors. The 2005 Silverado is the only dedicated CNG pick-up truck being produced in the 2005 model year that qualifies for use of the MSRC grant. BACKGROUND: This purchase was originally authorized by the Council on September 1, 2004 and the award made to Sunset Auto Plaza. The dealership was first unable to meet its commitment due to a lack of necessary certification to sell and service dedicated CNG vehicles. The factory order was denied by General Motors. The General Manager explained that his dealership was in the process of certification and would have no problem delivering the vehicle. Subsequently, the dealership entered escrow for sale and cannot complete the certification process. Lack of CNG certification also prevented the award to local dealerships. The Procurement and Contracting Division has located a dealership who is appropriately certified and willing to honor the same price and terms awarded to Sunset Auto Plaza. The total price of the vehicle is$39,957.22 for a net cost to the City after grant reimbursement, of$23,207.22. ruce J n n DAVID BARAKIAN P ent nd Contracting Manager Director, Public Works/ City Engineer APPROVE �'✓' City Manager REVIEWED BY DEPT.OF FINANCE', ATTACHMENT: Minute Order MINUTE ORDER NO. 7615 RESCINDING MINUTE ORDER 7545, AWARDING VEHICLE PURCHASE TO SUNSET AUTO PLAZA, AND AUTHORIZING THE PURCHASE OF ONE 2005 DEDICATED CNG TRUCK FROM CREST CHEVROLET, IN THE AMOUNT OF $39,957.22. I HEREBY CERTIFY that this Minute Order, rescinding Minute Order 7545, awarding vehicle purchase to Sunset Auto Plaza, and authorizing the purchase of one 2005 dedicated CNG truck from Crest Chevrolet, in the amount of $39,957.22, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 19'h day of January, 2005. JAMESTHOMPSON City Clerk n 0