Elk Grove Ordered To Vacate Contract With Elk Grove Ford in Tentative Ruling

UPDATED Note clarification: The ruling issued last Friday was tentative and the contract is for all city vehicles. __ In a tentative ru...


Note clarification: The ruling issued last Friday was tentative and the contract is for all city vehicles.

In a tentative ruling issued Friday afternoon, Sacramento Superior Court Judge Michael Kenny ruled that the City of Elk Grove must vacate the city vehicle car maintenance contract it awarded to Elk Grove Ford last year.

The suit was brought by Sacramento's Downtown Ford last year after the city council awarded the contract to Elk Grove Ford even though they submitted the lower bid.

In his ruling Kenny wrote;

"Based on the facts as found above, the Court concludes that the City’s action awarding the contract to Elk Grove Ford violated EGMC Section 3.42.180(A)(7), because the City did not award the contract to the responsible bidder with the lowest responsive bid, which was Downtown Ford.

The City and Elk Grove Ford argue that the City was authorized to act as it did under the exception provided in EGMC Section 3.42.180(B)(3). In making this argument, they contend that the City essentially “dispensed with” bidding by deciding to award the contract based on a determination that it was in the best interest of the City to do so.

This argument is not persuasive as a matter of fact or law."

 Although Downtown Ford was able to have the contract with Elk Grove Ford vacated, Kenny denied their request to have the contract awarded to them.

When the matter was before the Elk Grove City Council on December 14, the council decided not to follow staff recommendation awarding the contract to Downtown Ford even though the bid was $30,000 lower than Elk Grove Ford's. Interim City Attorney Jonathon Hobbs advised the council at the time it was within their discretion to award the contract to Elk Grove Ford if they found it was in the best interest of the city to do so.

City officials decline to comment on pending litigation.

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Anonymous said...

It is sad that this is not a victory for the taxpayers, nor for the prevailing party-Downtown Ford. By losing the request for writ of mandate, Downtown Ford is out legal fees and may very well find that the City Council will take action to reject all bids. Then they can go back and find that it is in the public interest to buy local and skip the bid process.

Once again, the taxpayers will fall victim to cronyism, losing money to pay a higher bidder, and paying legal fees to defend the City in its defense of the lawsuit. It is hard to imagine how the local taxpayer benefits directly as the City coffers shrink.

Oh that's right, the new state workers we paid to come to Elk Grove will be buying burgers across the street during lunch, and then wash it down with a new Ford during their afternoon break!

I feel richer already!

Anonymous said...

Elk Grove loses the battle but wins the war. They violate the law but are still able to have their cronnies benefit from circumventing the competitive bid process. They can just award the contract to EG Ford and the taxpayers money is spent unwisely...again.
When will the citizens wake up and put a stop to this?

Anonymous said...

Wait, don't forget the $50,000 just spent for Texas consultants to tell us whether we can afford to build a 20,000,000 soccer facility and maintain it...or the additional $5,000 spent a week later for the city leaders to fly to Tx and meet the consultants and also to "light a fire under" the owners of our mall, Howard Hughes Corp.
- At least that's humerous...pathetic, but humerous.
We're (the little city of EG)going to "light a fire" under the HH Corp? Really? I think we'd be wiser to beg for their help in getting it built.

Anonymous said...

Think it may be more like $80,000,000.+ Maybe there's someone out there who's pocket is getting heavy and will come forward with the moolah. :-)

While I disagree with the awarding of the contract to EG Ford, it was with direction of the city attorney that it happened. Hopefully while the contract may be void with EG Ford to provide services as listed, it would be my hope that they would unofficially follow the guidelines in what they charge the city for work during this period. Perhaps the citizens could help defray costs associated with this unfortunate lawsuit with taking their auto needs to Downtown Ford. JMO

Hope our city leaders don't get bushwhacked while they're in TX. lighting that fire.

Anonymous said...

Has or had E G Ford donated to the current 3 council members who are up for election???

Anonymous said...

Has or had E G Ford donated to the current 3 council members who are up for election???

Anonymous said...

Trying to find out if EG Ford donated (or will donate!)for Council elections is like trying to find life in outer space--you can send probes, read charts, look through telescopes...but you will never unravel the mystery! The good ol' boys somehow get it done every election and the mothership just keeps humming along!

Conrad said...

This dealership has lost my business. If they can't offer our own city a good deal for all their vehicles, just think what they're charging the general public for service.

I'm all for supporting local businesses, but that cuts both ways.

Anonymous said...

Anyone who watched this farse go down should have every reason to be outraged at this lawsuit. The process was followed and then the run pulled out by grandstanding up on the dais.

We should be able to impreach council members who cause lawsuits such as these; that and bill them personally for the legal fees.

That might shut them the hell up when they are performing for the cameras!

Anonymous said...

The way I read the court documents, this is a tentative ruling with the final ruling coming this Friday, March 23. I hope to God that Downtown Ford has a team of legal experts that can present a case that complies the judge to AWARD the RFP to them. Our city and "local" businesses are screwing the taxpayers. Mr. Hume should be dismissed from the council for his actions. If he wanted to re-evaluate what the staff proposed, he should have pulled the item and placed it on the next agenda...instead he circumvents the process set up; wastes our tax dollars; and makes a mockery out of the system. Shame, Shame, Shame on Mr. Hume. HE should have to reimburse the city for the cost of the lawsuit. Maybe someone should check what kind of car he is/will be driving around town....could it be a sweet ride from Elk Grove Ford???

Anonymous said...

Yes, I think the council members all out to pay out of pocket for this lawsuit. It is unfortunate that from the dais the others will only say what would help in a re-election. Is it possible that the council members have sold their souls for ego and position?

Steven Masone said...

EG does not need another Stockton Auto Mall like failure or Florin Road/Fulton Ave Auto Dealer Ghost Town. Ford did not take bail-out money.To help the new owners re-establish The most profitable U.S. Auto company so the Mall can operate in the black and compete with other malls, makes sense. The conspiracy hyperbole is nonsense. The New Ownership of EG Ford are not "Good ol boys" and have no cronyism ties here because to new ownership is relatively new to the area. Every local business owner ought to support "Buy Local." Being a former employee of Chuck Swift Dodge who had won CHP contracts year after year along with other agencies, I know that every factor, Mechanical, paint & body, detail, maintenance, down time, turn around, lease factors, insurance, drivers fees, gas, lot damage, transportation damage etc...has to be factored in. Add all that and keeping business local is not reflected in base cost per vehicle. The bang for the buck at EG Ford is probably better if all things are considered intelligently and calmly.

Anonymous said...

If DT Ford can perform the same work for less and have no quaility control issues, why would we pay more for a local company? If the local company got a 5% break, then they surely should come in as low bidder, right? I don't get this at all. Seems DT Ford had been doing the work for a few years without complaint and at renewal/contract time, they put submit the best bid. What am I missing? Didn't staff vet out all the proposals? Seems staff got it right and the council played some games. Now the council got caught! Shine the light and let the worms try to crawl away. I agree with someone above....boycott EG Ford....they seem to be right in the middle of this. If they are upstanding partners, then they should lower the bid. Simple as that.

Anonymous said...

The fleet prices that Elk Grove got from Elk Grove Ford which are near or below cost (Manufacturer kicks in hold back money)have nothing to do with what kind of deal retail customers will get. The price anyone negotiates will be honored by any dealership if it will actually buy the vehicle. I am suspicious of all the anonymous comments. Coming from Downtown Ford perhaps? Sour Grapes?

Anonymous said...

The fleet prices that Elk Grove got from Elk Grove Ford which are near or below cost (Manufacturer kicks in hold back money) have nothing to do with what kind of deal retail customers will get. The price anyone negotiates will be honored by any dealership if it will actually buy the vehicle. I am suspicious of all the anonymous comments. Coming from Downtown Ford perhaps? Sour Grapes?

Anonymous said...

Boycott Elk Grove Ford? Really? Because they won the contract? They convinced the City their higher bid would later be worth it? Great, let's shut them down, penalize all the employees trying to support their families and all the vendors etc...If EG City is found to have done something unethical or illegal that's on them. To call for a boycott is stupid.

Anonymous said...

I think the suggestion is to boycott a local company, who with a 5% cush, still couldn't come in as low bid. EG Ford should step up and support the competitve bid process. They (as all the bidders had to) had to agree to certain terms and conditions in relation to certain job tasks. After the bid process, it was determaned that another company legitatimately won the bid. A decent, upstanding, and professional company would acknowlege their short coming and learn a lesson. EG Ford remains silent and this council also has a lot of room for blame. Enough blame to go around. Man up EG Ford!!!

Anonymous said...

Councile Members how much was your take.

Anonymous said...

I know that Elk Grove Ford is a decent upstanding professional company. They have one of the highest customer satisfaction Index (CSI) ratings in the region. They won the bid because of their rating among other reasons was more attractive for EG to do business with. I will pay more for better service. You get what you pay for. The contract is for service and maintenance. Obviously Downtown Ford's minuses outweighed it's pluses. EG Ford did not have "shortcomings" they won! Get over it. Don't blame council for DTF suing EG, blame the litigious losers DTF. On appeal, the city should get this overturned.

Anonymous said...

EG Ford didn't "win" anything. They had a 5% advantage and still came in highest bidder. Then our high-priced, paid-by-the-hour contract city attorney gave bum advice and told the Council it's okay, you don't have to accept the low bidder. The judge said WRONG! Attorney wins anyway, and at the rate he's going, he'll make partner real soon--on our dime!

EG Ford workers are no better than Downtown Ford workers, they just work for a more greedier owner I suppose. No one likes a rigged game.

Anonymous said...

All of this begs the question, "How many other RFP's issued by the City of Elk Grove have been rigged?"

Anonymous said...

If you go back and listen to the tape, customer service was not mentioned by the council for the reason for the award. NICE TRY ELK GROVE FORD employee! Also, what rank did your dealership get in the CSI? I found it online..so don't fudge. I know the answer. Let's see if you can tell the truth.

Anonymous said...

EG Ford ownership has re-opened at the location just a year ago. EG city had been doing business with DTF previously. When you lose a customer for whatever reason, and then sue them in court...wow! That will earn their business back! Check the public records and see how many DTF customers are suing and have sued them for getting ripped off!

Anonymous said...

Google Downtown Fords Yelp reviews for auto repair, they rate at 2...and that's generous if to read the reviews.

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