TO: ADAM PIRRIE, CITY MANAGER
FROM: JEREMY SWAN, COMMUNITY SERVICES DIRECTOR
DATE: JULY 22, 2025
Reviewed by:
City Manager: AP
SUBJECT:
Title
AUTHORIZATION TO AMEND THE EXISTING AGREEMENTS WITH MK SMITH CHEVROLET AND FRITTS FORD FOR CITY VEHICLE REPLACEMENTS (FUNDING SOURCE: MOTOR FLEET FUND)
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SUMMARY
In November 2024, the City Council awarded a contract to MK Smith Chevrolet for the purchase of seven vehicles following a competitive bidding process. Since that time, MK Smith has worked with Chevrolet to order the required vehicles. In recent years, Chevrolet has opened its order banks for only short periods of time. Although MK Smith Chevrolet quoted pricing for model year 2024 Chevrolet Colorados and model year 2025 Chevrolet Tahoe Police Patrol Vehicles (PPVs), Chevrolet did not reopen the order banks for these model years, therefore the model year vehicles quoted as part of the original agreement are not available for the City to purchase. MK Smith has the opportunity to order 2025 Colorados and 2026 Tahoe PPVs; however, a contract amendment is required to allow for contract increases that went into effect for the new model years.
The City also entered into contract with Fritts Ford in July 2024 for seven hybrid Ford Interceptor police patrol units following a competitive bidding process. The vehicles were ordered and have since been delivered. The City budgeted to replace two additional Ford Interceptor police vehicles in 2025-26. The City now has the opportunity to amend the Fritts Ford contract to buy the two additional vehicles at the competitively-bid vehicle pricing.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Authorize the City Manager to amend the agreement with MK Smith Chevrolet for vehicle purchases, increasing the not-to-exceed contract amount by $21,328.58 to a total of $381,288.17; and
B. Authorize the City Manager to amend the agreement with Fritts Ford to purchase two additional Ford Interceptor PPV units at an added cost of $120,971.64.
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ALTERNATIVE TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
• Request additional information from staff.
FINANCIAL REVIEW
The 2024-25 and 2025-26 Motor Fleet budgets include a total of $1,866,368 for 21 vehicle replacements spread across the two fiscal years. To date, 16 vehicles have been ordered, $809,714 has been expended, and $624,297 remains encumbered. An additional $432,357 is available in the budget for the remaining five vehicle replacements. Staff proposes proceeding with two of the five budgeted vehicles through a contract amendment of $120,971.64 with Fritts Ford and allocating an additional $21,328.58 to the MK Smith Chevrolet contract to account for unanticipated model-year increases. This will leave $290,056.78 remaining for the final three vehicle purchases and upfits, which is sufficient based upon preliminary price quotes.
In addition to the Motor Fleet budget detailed above, the Police Department was recently awarded a Cannabis Tax Fund Grant Program Law Enforcement grant that will fund the cost to purchase and upfit one of the budgeted Ford Interceptors, up to a $91,000 value.
This purchase complies with all City purchasing guidelines. Bid and contract documents are available for review in the City Clerk's office.
The staff cost to prepare this report and administer this contract is estimated at $5,500 and is included in the operating budget of the Community Services Department.
ANALYSIS
MK Smith Chevrolet Contract
In November 2024, the City Council awarded a contract to MK Smith Chevrolet for the purchase of seven vehicles following a competitive bidding process. Since that time, MK Smith has worked with Chevrolet to order the contracted vehicles. In recent years, Chevrolet has opened its order banks for only short periods of time, limiting availability for dealers to place orders. Although MK Smith Chevrolet quoted pricing for model year 2024 Chevrolet Colorados and model year 2025 Chevrolet Tahoe PPVs, Chevrolet did not reopen the order banks for these model years after the contract was executed, therefore the quoted model year vehicles are not available for the City to purchase. MK Smith has the opportunity to order 2025 Colorados and 2026 Tahoe PPVs; however, a contract amendment is required to allow for contract increases that went into effect for the new model years.
The order banks for Tahoe PPVs opened July 10, 2025. Currently, no pricing is available for the 2026 model. According to MK Smith Chevrolet, Chevrolet has advised dealers of limited availability and advised that dealers place orders as soon as possible. So as not to miss the opportunity to purchase the 2026 Tahoe PPVs, staff recommends that the City Council approve a not-to-exceed amount for each vehicle. City staff can then evaluate pricing when it becomes available, and have City Council pre-authorization to purchase if the vehicles are within budget and pricing is competitive. Staff recommends that the City Council authorize a not-to-exceed price per Chevrolet Tahoe PPV of $62,000.
|
Originally Bid Vehicle |
Bid Price |
Available Vehicle |
Updated Price |
Difference |
|
2024 Colorado AWD |
$36,841.85 |
2025 Colorado AWD |
$38,126.00 |
$1,284.15 |
|
2024 Colorado AWD WT Convenience Package |
$38,301.65 |
2025 Colorado AWD WT Convenience Package |
$39,249.84 |
$ 948.19 |
|
2025 Tahoe PPV |
$57,225.94 |
2026 Tahoe PPV |
$62,000 |
$4,774.06 |
|
2025 Tahoe PPV |
$57,225.94 |
2026 Tahoe PPV |
$62,000 |
$4,774.06 |
|
2025 Tahoe PPV |
$57,225.94 |
2026 Tahoe PPV |
$62,000 |
$4,774.06 |
|
2025 Tahoe PPV |
$57,225.94 |
2026 Tahoe PPV |
$62,000 |
$4,774.06 |
The total not-to-exceed value for the MK Smith Chevrolet agreement is currently $359,959.59. Staff recommends increasing the not-to-exceed contract amount by $21,328.58 to allow for the above-listed model year increases, resulting in an amended not-to-exceed contract value of $381,288.17.
Fritts Ford Contract
The 2025-26 budget includes funding to purchase five vehicles: two Ford Interceptor police patrol units and three Ford Lighting work trucks. Following a competitive bidding process, Fritts Ford was awarded a contract in July 2024 for 2025 Ford Interceptors and 2025 Ford Lightnings. The City recently confirmed with Fritts Ford that 2025 model years are still available for order at contract pricing. Therefore, the City recommends amending its contract with Fritts Ford to procure the two additional Ford Interceptors. While contract pricing for the vehicle will remain the same, there is a slight increase to sales tax based upon the City of Claremont’s sales tax rate increasing to 9.75% in April 2025.
|
Vehicle Description |
Bid Price |
Sales Tax Increase |
Total Price |
|
Ford Interceptor |
$60,354.90 |
$130.92 |
$60,485.82 |
|
Ford Interceptor |
$60,354.90 |
$130.92 |
$60,485.82 |
The above proposed contract amendment to MK Smith Chevrolet of $21,328.58 and vehicle purchases from Fritts Ford of $120,971.64 total $142,300.22, which is within the available $432,357 remaining in the Motor Fleet budget. Three additional vehicles are budgeted to be purchased this fiscal year utilizing the remaining funds. Based on preliminary quotes, sufficient funds will be available to complete the remaining vehicle purchases and upfits. A separate staff report will be brought forward to the City Council in fall 2025, recommending award of contract for the remaining vehicles.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Sustainable City Plan, Economic Sustainability Plan, General Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Jeremy Swan Kristin Mikula
Community Services Director Community Services Manager