Staff recommends retaining the three vehicles offered for trade and selling them at auction because the dealer trade allowance for these three vehicles was only $500.00 while the trade-in book value is $6,730.00 for the three vehicles. Staff recommends awarding all bid schedules without trades to the lowest bidder as follows. Bid schedule 1 to Billion Auto Group, in Bozeman MT for the bid amount of $36,082.00; Bid schedules 2, 4 and 5 to Yellowstone Country Motors in Livingston, MT for the bid amount of $140,257.00; Bid schedule 3 to Ressler Motors in Bozeman, MT for the bid amount of $45,012.00; and Bid schedule 6 to Bison Ford in Great Falls, MT for the bid amount of $54,140.40 plus the add-on amount for lift gates of $4,410.00 for a total amount of $58,550.40.

Eight City Vehicles in the light truck class are scheduled for replacement in the City’s Equipment Replacement Program and were approved by City Council during the FY 20-21 budget process. Staff advertised for sealed bids for city vehicles on September 25, October 2 and October 9, 2020 with a bid opening on October 13, 2020.
 
The bids are for the following types of vehicles:

• One-3500, 4x4 regular cab pickup with snow plow (Streets)
• Two-3500, 2x4 extended cab pickups with service bodies (PW Belknap)
• One-3500, 4x4 extended cab pickup with service body (PW Belknap)
• One-2500, 4x4 crew cab pickup (Fire)
• One-1500, 4x4 extended cab pickup (Engineering)
• Two-2500, 2x4 regular cab pickups with lift gates (Streets)

City Council may:

• Approve the purchases of vehicles from the lowest qualified bidders or;
• Disapprove the purchases and reject all bids. If the bids are rejected, the units will not be replaced in a timely manner and the existing units will be used beyond the Equipment Replacement Plan recommendations. Vehicle reliability will decrease and maintenance costs will increase.

The City Departments ‘FY21 budgets include adequate funds to replace the vehicles described. The City received bids from four vendors on the vehicles. The total low bid amount for the vehicles is $275,491.40 as outlined in the attached “Vehicle Bid Results.” In addition to the amount bid, there is an add-on amount of $4,410.00 for bid schedule 6 for lift gates that were omitted in the bid amount submitted by the vendor. The add-on amount brings the total low bid amount to $279,901.40.