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CouncIl Meeting July 22, 1997
Santa MOnica, CA
JUl 2 2 1997
TO Mayor and City Council
FROM City Staff
SUBJECT RecommendatIon to Purchase RebUIlt Detroit Diesel EngIne Parts and
Allison Transmission Parts and Authonze the CIty Manager to Negotiate and
Execute a Purchase Order with Valley Detroit Diesel Allison Inc
Introduction
This report concerns the purchase of rebuilt DetrOIt dIesel engIne parts and AllIson
transmiSSion parts for the Maintenance DIvIsIon, Transportation Department, at specified
percentage discounts, Includmg applicable sales tax
Backaround
Detroit diesel engine parts and Allison transmiSSion parts Will replace worn-out bus engine
parts and Allison transmIssIon parts on City-owned buses Valley DetrOIt Diesel Allison,
Inc IS the sole distributor of these parts for the Southern/Northern CalIfornia areas They
are exclUSively assigned thIs territory/region The manufacturer Will not sell direct to the
City
Staff received a quote for the percentage discount off manufacturer's published list pnce
as follows
PARTS
PERCENTAGE DISCOUNT OFF
MANUFACTURER'S PRICE LIST
DetrOit Diesel Engine
Allison TransmiSSion
10%
39%
bfA
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JUl 2 2 1997
Ordinance Number 1743(CCS), Section 5, paragraph 224080 of the Santa MOnica
MUnicipal Code allows exception to competitive bidding when Items are purchased from a
sole source manufacturer/dlstnbutor
Staff has evaluated the quote submrtted by Valley Detroit Diesel Allison Inc and finds that
It meets CIty specifications
BudaetlFlnanclallmoact
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Fiscal Year 1997-98 appropriation authOrity for thiS purchase IS In vanous maintenance
accounts of the Maintenance DIVISIon, Transportation Department. As the matenals are
drawn out of Inventory, they WIll be expensed against available FY 1997-98 appropriation
authOrity The estimated annual expenditure is $75,00000
Recommend;;itJon
It IS recommended that the award be made to Valley DetrOit Diesel Allison, Inc at
speCified percentage discounts, Including applicable tax
Prepared By Pam Wortham, Purchasmg Agent
Marganta Lee, Buyer
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