HomeMy WebLinkAboutAgenda Report - November 18, 1981 (43)gC,5��6
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CITY COUNCIL MEETING
November 18, 1981
Mr. Schroeder presented a letter which had been
received from Richard Sanborn, Sanborn Chevrolet,
1210 S. Cherokee: Lane, regarding Council's decision
to accept a bid for Dial -A -Ride vehicles from a dealer
outside of the City of Lodi.
0
S►ANB®RN CHEVROLET, INC.
1210 South Cherokee Lane / LODI. CALIFORNIA 95240 / (209) 331-5000
November 13 1981
Mayor ,Tames A. McCarty
City of Lodi
P.O. Box 320
Lodi, California, 95240
Dear Mayor McCarty:
It is with much regret that I find myself compelled to write
you this letter regarding the recent purchase of vehicles for the
City's use in Dial -A -Ride.
This letter is not meant to criticize the City c,7uncil in their
duties to be prudent with taxpayers money in accepting low bids for
any purpose- but, the wonderment of the judgement of going beyond
the city limits to support business that offers nothing to our
community in the way of taxes, support to community projects with
time and money or the employment of the citizens in our community.
Sanborn Chevrolet is proud to be a part of Lodi and to help in
every way we can to increase Lodi -Is vitality;but, to do so, S:nbcrn
Chevrolet, as other businesses, car dealers, ect, must be vital to
the city and the community. The city must be prepared to accept the
results of pursuing a practice of not giving any local business full
consideration when determining its needs.
The auto dealers of Lodi employees are in excess of 165 people
who help to support the other businesses in our city, and help support
community projects, Sanborn Chevrolet in 1981 will pay over $700,000
in payroll plus return to the city about $60,000 in sales taxes, not
counting property taxes or other benefits we pay that benefit the
community.
How long is our city going to be viable when business advertise
"Shop in Lodi^"Buy in Lodi" ani our own city government goes out of
town to do business?
On this particular bi.l. Sanborn Chevrolet would have lost money
to win the bid. This is why many dealers fail in business and become
a detriment to their communits.1. Many of you have bought behicles
before and hae to have some worn done on them while the warranty was
in force. A selling dealer knows that when he sells a vehicle out of
his area, he is not going to be saddled with the cost of administrating
the war::anty fcr the factel_y.
P
E
I think that there is a lack of total cost factors being
considered when bids are called upon. It would be prudent, as we
do in business, to establish these total cost factors prior to
calling for bids and making the final purchase.
We were asked by the city :staff and have h, -:--n asked in the �,D"43t.
for technical assistance on vehicles being specs for bids which we
have been very pleased to do, regardless of our cost in securing
information; but, until the city can assure us that this is a policy
of the past and wishes to do business in town with the local dealers.
Sanborn Chevrolet will not expend costly time or money necessary to
prepare bids.
RES: Ss
cc: Mr. Henry A. Glaves,Jr.,
City Manager
Mr. Jerry Glenn,
Assistant City Manager
-2-
Very truly yours,
SANBORN CHEVROLET, 'INC,
e
e.
Richard E. Sanborn,
President
CITY COUNCIL Var
IQNRY A GLAVIS. Ir
City Manager
IAMB A McUKTI', Mayor CITY O F LO D I
ROUE R G htURP}ty. Mayor Pro Tem
RICHARD I HUGHES CITY HALT. 221 %%151 PINT SIR[ f T
WAITER KATNICH POST OfFICE BOA 320
fAMfS W PINK[RION. it LODI. CALIFORNIA 95241
(209) 334-5634
November 19, 1981
Mr. Garrett Baldwin
Baldwin Olds Buick, Inc.
1 East Lodi Avenue
Lodi, CA 95240
Mr. Dennis Plummer
Plummer Pontiac Cadillac
GMC, Inc.
1011 S. Cherokee Lane
Lodi, CA 95240
Gentlemen:
Mr. Darryl Geweke
Geweke Ford
1045 S. Cherokee Lane
Lodi, CA 95240
ALICI M Rf IMCHI
City Clerk
RONAIDM STEIN
City Attorney
Mr. Richard Sanborn
Sanborn Chevrolet
1210 S. Cherokee Lane
Lodi, CA 95240
Mr. Jack Weil
Weil Motors, Inc.
2 West Lockeford Street
Lodi, CA 95240
As you know, the City of Lodi recently awarded a purchase of
six vehicles to an out -of -city vendor. This decision on the
part of the City has evidently caused some concern as to giving
full consideration to local automobile dealers.
It is not uncommon for the City to go outside its limits for
contracts. We do have an obligation to give the 35,000 citizens
of Lodi the most for each dollar spent.
It certainly is our intent to purchase locally whenever feasi-
ble. In our evaluation, we looked at the dollar cost of the bid
and the amount of loss of sales tax dollars. We did realize the
potential difficulties in warranty problems, and perhaps did not
give it the consideration it is due.
One dealer has suggested that there may be a lack on the part of
the City in considering the total cost factors in awarding pur-
chases. I cannot quarrel with that statement - we may not be
giving due consideration to factors other than direct cost.
With this in mind, I mould .:Ike to meet with you collectively to
ascertain what are all of the factors which should be considered
in awarding purchases for automobijes and trucks.
To Local Automobile Dealers
Page Two - November 19, 1981
I mould like to meet on Tuesday, !)e--= ;,-?',: 1 1981 at 11s00
a.m, in the City Manager's conference room. if you cannot
attend, please contact my secretary Vera Crete - 334-5634,
Extension 215.
Very truly yours,
JERRY L. GLENN
ASSISTANT CITY MANAGER
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