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Consent   1.A.1.
Regular City Council Meeting
Meeting Date:
09/09/2013
TITLE
Award of Bid for City Vehicles
PRESENTED BY:
Larry Deschene, Fleet Services Manager
Department:
City Hall Administration
Presentation:

Information

PROBLEM/ISSUE STATEMENT

Ten city vehicles in the car and light truck class are scheduled for replacement in the City's Equipment Replacement Program and were approved by City Council during the FY13-14 budget process. The bids are for the following types of vehicles: • One ¾ ton 4x4 extended cab pickup (Animal Shelter) • One mid-size utility vehicle (Planning) • One ½ ton full size 2wd pickup (Engineering) • Two mid-size 4 door sedans (PW Belknap & Solid Waste) • One 1 ton 4x4 crew cab with utility body (Fire) • One 1 ton 2wd regular cab pickup with service body (PW Belknap) • One ½ ton 4x4 regular cab pickup with plow (Parks) • One ¾ ton 4x4 regular cab pickup (PW Solid Waste) • One 1 ton 4x4 regular cab pickup (Airport). Staff advertised for sealed bids for city vehicles on August 15 and August 22, 2013, with a bid opening on August 27, 2013.

ALTERNATIVES ANALYZED

The City Council may
  • Approve the bid awards for city vehicles; or,
  • Reject all bids.

FINANCIAL IMPACT

The City received 4 bids, with one rejected for non-compliance, on the vehicles as outlined on the attached “Vehicle Bid Results.”

RECOMMENDATION

Staff recommends awarding all Bid Schedules to the lowest bidder, as follows. Bid Schedules 1, 3, 5, 6, 8, and 9 without trades and Bid Schedule 4 with trade to Archie Cochrane Ford in Billings, MT for the bid amount of $206,905.00; and Bid Schedule 2 without trade and Bid Schedule 7 with trade to Denny Menholt Chevrolet in Billings, MT for the bid amount of $52,301.00. Staff recommends retaining three of the six vehicles offered for trade and selling them at auction because the dealer trade allowance for these three vehicles was only $3,500 while the trade-in book value is $7,017. Staff recommends trading three of the trade vehicles because the dealer trade allowance was $7,000 while the trade-in book value was $6,018 for the three vehicles.

APPROVED BY CITY ADMINISTRATOR

Attachments