DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Administrative Sedans (Gasoline/Electric Powered Hybrid)
SUMMARY:
This ordinance authorizes acceptance of contracts with Silsbee Toyota, Benson Honda Imports and Silsbee Ford to provide 41 Gasoline/Electric Powered Hybrid Administrative Sedans to the City of San Antonio for a total cost of $925,077.60. Funding for this purchase is available from the Equipment Renewal and Replacement Fund (ERRF).
BACKGROUND INFORMATION:
A. Submitted for City Council consideration and action is the attached competitively bid tabulation of three responses to provide 13 gasoline/electric powered hybrid administrative sedans which are replacement vehicles that will be funded through the City of San Antonio’s Equipment Renewal and Replacement Fund (ERRF) for a total cost of $283,951.85. These vehicles will be utilized by the Development Services, Downtown Operations, Fire, Metro Health, Transportation & Capital Improvements and Solid Waste Management Departments. The low bid was submitted by Silsbee Ford.
B. Submitted for City Council consideration and action is the attached tabulation of three offers submitted by Benson Honda Imports, Silsbee Ford and Silsbee Toyota to provide 28 various gasoline/electric powered hybrid administrative sedans which are replacement vehicles that will be funded through the City of San Antonio’s ERRF for a total cost of $641,125.75. The acceptable offers were submitted by Benson Honda Imports, Silsbee Ford and Silsbee Toyota utilizing the cooperative purchasing contract number 430-13 through BuyBoard Cooperative Purchasing. These vehicles will be used by the Police Department for conducting investigative field work. This purchase will ensure that the Police Department has a variety of hybrid vehicles to increase their ability to blend in with the environment more effectively.
The 41 sedans will be utilized by the Development Services, Downtown Operations, Fire, Metro Health, Police, Transportation & Capital Improvements, and Solid Waste Management departments.
The Administrative sedans will be used for conducting City business including travel to and from City facilities or residences as is the case with Development Services, Downtown Operations, Fire, Metro Health, Solid Waste Management departments. Transportation and Capital Improvements will utilize these vehicles for the transportation of employees, supplies and equipment to work sites. The Police Department will utilize the vehicles for conducting administrative field work by Police Officers with the rank of Detective Investigators, Sergeants, Lieutenants, and Captains.
Vehicles and equipment that meet their expected life cycle are usually sold at auction. If the fleet asset is in the City’s fleet replacement program the proceeds of the sale are returned to the fund. The proceeds will be used to purchase new similar vehicles and equipment for the same department that operated the sold fleet asset. All of the vehicles purchased will be placed in the City of San Antonio’s ERRF.
ISSUE:
These contracts will provide 41 replacement vehicles to the City’s fleet. Currently, there are 392 gasoline/electric hybrid powered vehicles in the City’s fleet. Of the 41 total units authorized by these contracts, 13 will be purchased from Silsbee Ford utilizing the competitive bid process. The remaining 28 will be purchased from Benson Honda Imports, Silsbee Ford and Silsbee Toyota utilizing the Texas BuyBoard cooperative contract #430-13 and will be made in accordance with the Texas Local Government Purchasing Cooperative passed on Ordinance No. 97097 dated January 30, 2003.
The Texas BuyBoard Cooperative is administered by the Texas Municipal League. All products and services that are part of this cooperative have been competitively bid and awarded by the Cooperative’s Board of Trustees based on Texas Statues.
The Ford Fusion, Ford C-Max and Toyota Camry hybrid sedans are covered by a 36 months/36,000 miles bumper to bumper coverage warranty and the Honda Insights are covered by a 3 Year/36,000 miles limited warranty, 5 Years/60,000 miles limited powertrain warranty. The life expectancy for all of these vehicles is 96 months.
The Small Business Economic Development Advocacy Ordinance requirements were waived due to the lack of qualified small, minority, or women-owned businesses available to provide the goods and services.
A. In accordance with the Local Preference Program, no local preference was applied, since the local bidder is not within 3% of the recommended lowest non-local bidder.
B. This contract is an exception to the Local Preference Program.
The Veteran-Owned Business Program does not apply to good/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
The current administrative sedans scheduled for replacement have met or will meet their age and or mileage requirement cycles before they are replaced. The replacement date is considered the optimum time for replacement in that delay of the acquisition could result in the vehicles incurring higher maintenance cost as a result of age or high mileage. This could impact the City’s ability to provide essential services to the residents of San Antonio.
FISCAL IMPACT:
The purchase of these sedans is for a total cost of $925,077.60 and will be funded from the ERRF.
The ERRF charges a monthly lease rate to each respective department/fund the entire time a department/fund has possession of a vehicle or equipment. When the vehicle or equipment reaches the end of its life-cycle or the contractually obligated period, the replacement fund provides the financial resources for its like replacement.
The replacement of these units is consistent with the City’s vehicle replacement program. Moreover, these new vehicles will be placed in the ERRF upon entry into service.
RECOMMENDATION:
Staff recommends the approval of the contracts with Benson Honda Imports, Silsbee Ford and Silsbee Toyota for a total value of $925,077.60.
Item A was procured on the basis of low bid and a Contracts Disclosure Form is not required.
Item B was procured on the basis of Texas BuyBoard Cooperative and a Contracts Disclosure Form is not required.