COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Bill Young, Transportation and Maintenance Superintendent
SUBJECT:Title
Approve the Cooperative Purchase of Two (2) 2024 F550 Regular Cab 4X2 and One (1) 2024 Ford Expedition 4-Door 4X4 UTV from San Tan Auto Partners LLC (Bill Young)
Body
FUNDING SOURCE:
Water Utility Fund
General Fund
PURPOSE:
Approve the purchase of two (2) Water Utility Division replacement vehicles, and one (1) City Administrative Services pool vehicle, utilizing the Arizona State Procurement Office (AZSPO) Contract CTR059323 City Contract 500289 in accordance with City Code §§ 3.10.010.3(A)(1) and 3.10.030.1.
BACKGROUND:
The Lake Havasu City Vehicle Maintenance Division is requesting approval of the purchase of two (2) 2024 F550 Regular Cab XL 4X2 for a total delivered price of $72,304.72 each, as well as one (1) 2024 Ford Expedition 4-door 4X4 UTV for a total of $64,647.54
The purchase of the Ford Expedition replaces the prior approval of a Chevrolet Suburban for the City Administrative Services pool vehicle. The order was placed with the Chevrolet dealer, but the dealer cancelled the order due to lack of stock. This Ford Expedition purchase is approximately $7,000 less than the Chevrolet Suburban purchase.
These purchases would be made through a cooperative agreement utilizing the AZSPO Contract CTR059323, with an end date of March 16, 2028. Cost of the new vehicles is $209,256.98, including tax and fees.
This process will allow the Vehicle Maintenance Division to take advantage of lower pricing for the products due to the AZSPO soliciting for larger volume contracts.
Two of the vehicles are replacements in the Water Utility Division for existing equipment which met or exceeded the replacement criteria. Points for initial qualifications raised from 28 to 32 several years ago. Points are based on age, mileage, condition, maintenance history, reliability, and type of service based on American Public Works Association guidelines. The 2024 Ford Expedition will be utilized to accommodate group travel by City employees.
Fiscal Year 2024 total purchases approved for issuance under City Contract 500289 are $1,123,006.09 for 20 vehicles.
COMMUNITY IMPACT:
Providing a cost-effective and reliable fleet of vehicles allows Lake Havasu City departments to meet the goal of providing efficient and effective services. Utilizing the cooperative purchase agreement for these purchases provides a greater efficiency and economy through leveraged pricing.
FISCAL IMPACT:
Funds in the amount of $144,609.44 for this purchase are allocated and available in the Fiscal Year 2023-24 Water Utility Fund. Funds in the amount of $64,647.54 for this purchase are allocated and available in the Fiscal Year 2023-24 General Fund.
ATTACHMENTS:
Quote for 2024 F550 Regular Cab XL 4X2
Quote for 2024 Ford Expedition 4-Door 4X4 UTV
SUGGESTED MOTION:Recommended ACtion
I move to approve the cooperative purchase of two (2) 2024 F550 Regular Cab XL 4X2 vehicles and one (1) 2024 Ford Expedition 4-Door 4X4 UTV in the amount of $209,256.98 from San Tan Auto Partners, LLC, subject to release of any amended manufacturer’s official published pricing and discount off of the manufacturer’s retail price by the Arizona State Purchasing Office, and authorize the City Manager to approve an amended adjustment.