AGENDA CAPTION:
Title
Consider approval of Resolution 2020-44R, awarding a contract to Caldwell Country Chevrolet through the BuyBoard Cooperative Agreement (Contract No. 601-19) for the purchase of eight Chevrolet Tahoes and two Chevrolet Silveradoes for the police department in the amount of $300,614.60; authorizing the City Manager or his designee to execute the agreement on behalf of the City; and declaring an effective date.
Body
Meeting date: March 3, 2020
Department: Police Department - Bob Klett, Interim Chief of Police (By Lynda Williams, Purchasing Manager)
Amount & Source of Funding
Funds Required: $300,614.60
Account Number: Funded through financing agreement with U.S. Bancorp Government Leasing and Financing, Inc
Funds Available: $294,715-Financing agreement, $5,899.60 Capital Funding
Account Name: Financing agreement, Capital Outlay
Fiscal Note:
Prior Council Action: October 15, 2019, No. 2019-202R: Council awarded police vehicles for a total amount of $649,780.
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Background Information:
On October 15, 2019 City Council approved the purchase of twenty 2020 Police Chevrolet Tahoes in the amount of $649,780 from Johnson Grayson Automotive, through the Texas SmartBuy Cooperative (Contract #070-A1). On January 2, 2020, we were notified that resulting from the United Auto Workers strike of over eight weeks, the City’s order through Johnson Grayson Automotive would be reduced to 10 units by General Motors. Fortunately, the Police Department located 8 additional Tahoes and 2 Chevrolet Silverados from Caldwell Country Chevrolet (on contract with purchasing cooperative BuyBoard) for the cost of $330,789.60.
The City of San Marcos is authorized by the Local Government Code, Chapter 271, to participate in cooperative purchasing programs. The (“BuyBoard”) Cooperative Purchasing has awarded contract #601-19 for Vehicles, Heavy Duty Trucks, Police Motorcycles, Parts, and Service Labor to Caldwell Country Chevrolet.
The original authorization by Council in October 2019 was for the amount of $649,780 to Johnson Grayson Automotive for 20 Tahoes. Due to unforeseen circumstances which reduced the previously approved vehicle order, the city requests the purchase of 8 Tahoes and 2 trucks for the revised total cost of $655,679.60 for 20 vehicles. The net difference from the originally approved amount and the revised amount is $5,899.60, which will be cash funded by the City. The original financed amount of $649,780 through U.S. Bancorp Government Leasing and Finance, Inc. will not change.
Due to availability, model year changes, and fluctuating costs we continue to review the best purchase option for our marked fleet. Each year we look at several factors when deciding which type of vehicles to order as replacement vehicles for police cruisers. First, we look at the pricing that is available for the normal police package vehicles available from each manufacturer. What we have found is that the most cost-effective vehicle this year may not be so next year. For example, the Ford Explorers available in FY20 were more expensive than the Tahoes. We also look at where the needs exist within the department. For example, we have found that an SUV works best for our SWAT members and command patrol positions. Tahoes remain the best purchase option this cycle. Two of the vehicles were changed during this process to a pickup based on need.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Recommend revising the award to Johnson Grayson from 20 Tahoes to 10 and award to a contract Caldwell Country Chevrolet through the BuyBoard for 8 Tahoes and 2 Silverado trucks for the total revised contract award amount of $655,679.60 for 20 police department vehicles.