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CHAPTER
16
SPECIAL TYPES OF PROCUREMENT
OVERVIEW
This chapter will provide insight to procurement policies
for various non-standard or exception procurements.
This chapter will be continually evolving as new and
innovative methods of procurement are adopted by the
City of Visalia.
PROCUREMENT
OF USED FLEET VEHICLES
Purpose
The purpose of this section is to outline the procedure
to be followed in the procurement of used vehicles for
all City departments.
Procedure
The City of Visalia frequently supplies its employees
with vehicles to be used in the course of carrying out
their duties. A staff vehicle can be defined as a non-specialized
vehicle (i.e., not a specialized piece of equipment
such as a front-end loader) which is used to transport
City employees and, on occasion, business associates.
The City has determined that in many instances it is
feasible to purchase low-mileage, late model, warrantied,
used vehicles rather than brand new vehicles. While,
a significant amount of money can be saved in purchasing
used vehicles, it is always incumbent upon the City
to insure that it is obtaining the best value for its
money. As such the following procedure is to be used
in the purchase of staff vehicles.
Determination as to whether a vehicle replacement is
accomplished with a used or new vehicle shall be a cooperative
effort between the Purchasing and Fleet Divisions and
the using department. Not all staff vehicles will be
purchased used. Vehicle use ( how it is utilized and
how much it is to be driven) and funding source are
to be taken into consideration when determining whether
a particular vehicle purchase qualifies under this policy.
Used staff vehicles are to be purchased by negotiation
with local car dealers. Only in the case of non-availability
of suitable vehicles from local dealers, may the purchase
be made from a dealer located outside of the City of
Visalia city limits.
The following procedures are to be used in the purchase
of a used staff vehicle:
- Vehicle
criteria are established. Criteria shall be based
on required use, existing vehicle specifications and
funds available for purchase. In most instances, the
criteria shall be established and/or approved by the
Fleet Manager.
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The Purchasing Agent or department representative
locates a suitable used vehicle at a local car dealer.
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The car dealer completes the required paperwork, identifying
the features, warranty and price of the subject vehicle
and any trade-in for the vehicle to be replaced. The
price of the vehicle to be purchased, including sales
tax, excluding trade-in of the used fleet vehicle,
may not exceed the approved budget amount.
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After the dealer has completed the price quote on
the vehicle, the vehicle shall be delivered to the
City Shop where it can be physically inspected for
mechanical soundness. If determined to be mechanically
sound, the Fleet Services Manager will sign-off on
the price quote form. The Purchasing Agent or Fleet
Services Manager must develop a "Kelley Blue
Book" comparison on the subject vehicle and possible
trade-in.
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The vehicle may be purchased if: (1) the vehicle passes
Shop inspection; (2) the price quoted, including sales
tax, excluding trade-in, does not exceed the budget
amount, and; (3) a Kelley Blue Book comparison supports
the price quote.
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Purchasing will prepare all paperwork necessary to
take ownership of the vehicle and relinquish ownership
of the trade-in vehicle.
Other
Considerations
- If
vehicles are to be procured outside of the annual
replacement process, the same procedures shall apply.
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This policy does not apply to vehicles to be purchased
using grant money.
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