SR-6-J (22)
t" 6-F
J~,N 2 6 \9gt
PURCH:PW:klcjcc2383.word.purch Santa Monica, California
Council Meeting: January 28, 1992
TO: Mayor and City Council
FROM: City staff
SUBJECT: Recommendation to Reject Bids to Furnish and Deliver
One (1) New Full size Six Passenger sedan, Bid #2383
Introduction
This report concerns rejection of bids to furnish and deliver
one (1) new full size six passenger Sedan for the Transportation
Department, in the total amount of $18,128.74, including
applicable sales tax.
Background
In response to published Notices Inviting Bids (published
October 10 and l1, 1991) to furnish and deliver one (1) new full
size six passenger sedan in accordance with City specifications,
bids were received and publicly opened and read on
November 20, 1991. Proposal forms were mailed to seven vendors
and notices were advertised in accordance with City Charter and
Municipal Code provisions. Two proposals were received as
follows:
Gasoline Powered
Thorson aIds Buick GMC $18,128.74
Thorson GMC Truck Buick $19,9500476
- 1 - -T
I .. -'. 'qal
Jt.Hi .:.,:) ',';
. .
This vehicle replaces a 1987 Chevrolet caprice which has exceeded
its expected life span.
BUdget/Financial Impact
This recommendation does not have a budget or financial impact.
Recommendation
It is recommended that all bids be rejected and staff be directed
to investigate further the availability of vehicles powered by
alternate fuel sources.
Prepared By: Pam Wortham, Purchasing Agent
01/22/92
- 2 -
growth from FY199l-92 to FY1992-93 primarily reflects essentially
no growth in Sales Taxes, a decrease in Business License Tax
proceeds, and a decrease in interest earnings due to lower
available interest rates. As a result, the General Fund balance
will be exhausted unless mitigation strategies are implemented.
The City's strategy for mitigating the short-term and long-term
effects of the recession is primarily two-fold: 1) a temporary
"hiring control program" has already been implemented whereby all
hirings (of permanent and as needed staff) will be approved by
the City Manager's Office; and 2) all departments have been
requested to submit FY1992-93 operating budgets which are 5% less
than the current revised FY1991-92 operating budget for the
department. In addition, the City's capital improvement program
will also be reviewed for possible reductions of at least 5%.
While significant changes in the economy most directly impact the
General Fund, essentially all other funds with budgeted staff are
also eventually affected either because they are partially
financed with General Fund revenues, or because economic
downturns reduce the ability of service recipients to pay service
fees. Therefore, the city's recession mitigation strategy is
applicable to essentially all funds with budgeted staff.
This two-fold mitigation strategy is intended to bring on-going
revenues into balance with on-going expenditure requirements, and
over the next five fiscal years ensure that the General Fund
unobligated balance remains in the range of 5% to 7% of total
expenditures.
- 7 -
Gann Limit
In 1979, state voters approved a change to the state Constitution
establishing a restriction on the amount of tax revenue
governments can spend in any fiscal year. This restriction is
known as the Gann Limit. Each jurisdiction's annual Gann Limit
is equal to actual tax revenues spent in the base year of
FY1978-79 increased each year by standard population and economic
growth factors. This is the jurisdiction's "on-going" limit. In
addition, local voters can approve limit overrides for a
four-year period to enable a jurisdiction to spend tax proceeds
resulting from local population and/or economic growth which is
greater than the standard growth factors. In Santa Monica, such
overrides have been approved by over two-thirds of the local
voters on three separate occasions.
For FY1991/92, the city will be under its total Gann Limit. The
total limit consists of an on-going component and voter-approved
override components: $7.4 million for increased public safety
services such as Police and Fire protection, and $11. 8 million
for increased capital improvements for such things as streets,
traffic controls, parks, the Pier, libraries, and the maintenance
of such facilities.
Since approved overrides are only valid for four years, the
City's existing Gann Limit overrides, last approved by the voters
in June 1988, will need to be placed on the June 1992 ballot for
renewal.
- 8 -
Voter approval of these override renewals in June 1992 means
tha t the City will be able to continue to provide the existing
high level of Police and Fire protection, parks, libraries,
street repair and maintenance services without tax increases.
Should these overrides not be renewed by the voters, City
services will have to be reduced by almost $20.0 million. Such a
reduction would constitute almost 20% of the city's General Fund.
Recommendation
It is recommended that the Council conduct the hearing to receive
public input, and direct staff concerning priorities for
preparation of the FY1992-93 City budget.
Prepared by: John Jalili, city Manager
Lynne C. Barrette, Assistant City Manager
Mike Dennis, Finance Director
Attachments
- 9 -
,
II
"
.,
"
!I <fi.
<fi. LO
, (/J ~
o:t
" o:t
(]) u <i-
ii (I) IJ..
i! u CO
0 r::: ~ o:t
:1 .,. ::l E
L- a IJ.. Cl u
::2: r:::
i ~ ~ C\I IV ::l
0 IJ.. #-
ii 0 c: IV 0
.-
~ : l'll (I) "- co
"- l'll IV
:i C/) ::l .- #-
(I) ~ l'll U o:t
c: ~ c:
- U IV ::l m
- - - IJ..
(]) 0 (I) c:
C\I G.I l'll "- 0
(f) (f) ~ IV -
:J - -
0') l'll l'll
:: ....
C "-
--....... 0 CO
(I) " '" Q,
,..... ~\ (I) LO
c:
> 0') l'll (j)
....
(]) .....
0') \ -
0: ., Cf')
,..... C\J
: ,
>- , ,
-c i , \ LO
i , "
LL I , -
(I) ! i C\J
....... , (j) .1
'j
! 0- en i I !I
, , ~
0 -0 " , , # ,^
\ ~/ , co ""'''' II
" f
"'C C \ C'II
\ ! ~ II II
<( ::l , i
\\ i (I)
....
LL \... ; 41 -
i
\., ; ..c: ~
/ ..... ;i
/ ;
~ 5~ ~/ 0 ....., Ii
0= /" - ~
I <I;
I >.<( I
i LO
I U
i r:::
L- ::l
CO IJ..
l'll
E "-
IV
r:::
E Q)
:i "
!
i :J
i
(f)
jl
. ~
~ i
,
'I
CIJ ;/l. II
<J) '#. tJ!
co co ..r !I
() .,... ('? ..r
II) II)
; L.. w c. 0 tJ! ii
::J ::::l 0 > 10
1 t:: ... r.n
w a.. '<t
0 > ...... -
w >. t:: en
(j) a: w w 41
t:: ... ...
C\J LL 0 ... ::J
~ - #.
C:J :::E 0 - ID
(j) I 41 tJ!
... - -
(]) W 0 II) ... ..r 0
.c: 41 0 II)
.......... 01 LL r--.
::J - 41 ell
I 0 II) ...
III cd I1l II)
I c: .,.- ~ .r::. LL -
-
(j) U (I) E
41 l::
Q.) t:: 0 ...
(I.J
(j) - ..- a..
> LL III
i ~""' 01 ~ CO
; i (]) .,.- .;: t:: (j)
\ - l'tI
j' (( >- ". :::E
\. \ II) -.:::t
I1l
I LL II) Ii
..
c: (j) :!
:, ""C 41
~ ,-
(J) -C ....l f'..,
+--- C ", ..
C. J- eo
0 0 ,
I.J... i
"'C ! ,-
l ,^ .1
<:( - i ;/l. ...,",
ro 0) II II
". #-
"- co
.,...
...... (1.) 10 II) - :1
41 C\1
0 co -
! C 0
!; (I) c: ..-
" I1l ~
iI ~(]) )( ell
01
"I l'tI <
I, !-
'I L..(!)
.. .,
<<I I1l "
;j CO 0 .r::. I
0 -
; E ....l 0
,
>
E I1l
a:
::J
II CJ)
:1
'!
~
t-;
o
' -
~ :
'i CI) <XI...
!! Q) "0.
il X (/):::1 .,.
" ~ u
: xu"
I ro ~ ~ 0 ~
I- "~-;; x
"' ~ ~ .
.r.
N _ . ...
- x 0 c
'" · · 0.
.U ... = ~ ,
< I- ()
() C\J 0; u T""
O. ~ 0
I'T\:J _
...J v I,., e C\I :!
........ - "- -
I I T""" ~ ,~ cY:l
i, Q) (j):J " III I.()
:J I'T\ \ r-..
C VI , _
T""" I 0
Q) >- . I
> r-..
Q.) I. ; ",
...... , V J
:i a: "'C j II
:""Cc " _
.1 I _
,. ...... , 'V
iiQ)~ ! ~
:1 ..... u.. 0 :,
' "
Le. / ~ ~ ,\
I! 0 - / N 'I
" '" 1
. .u 0,
.... N.,
...... l.... "
.' <{ Q) ~..
il c: ~
'I ...
- Q) ,.,
0(9 ~
o ,.
~ ~ ,!
J.....
ro
n E .
E ~
::J
:1 CJ)
:,
Ii