AGENDA REPORT
Meeting Date: February 19, 2025
Item Number:
To: Honorable Mayor & City Council
From: Michael Hensley, Deputy Director of Public Works – Operations Craig Crowder, Fleet & Facilities Manager
Subject: APPROVAL OF A PURCHASE ORDER TO PENSKE MOTOR
GROUP, LLC DBA LONGO TOYOTA FOR A TOTAL NOT-TOEXCEED AMOUNT OF $114,497.54 FOR PURCHASE OF TWO (2)
POLICE ADMINISTRATIVE VEHICLES
Attachments: 1. Longo Toyota Price Quote Police Highlander Hybrid
RECOMMENDATION
Staff recommends that City Council waive the bidding requirements, as it is in the best interest of the City and approve a purchase order in the not-to-exceed amount of $114,497.54 to Penske Motor Group, LLC DBA Longo Toyota for the purchase of specified Police Department replacement vehicles.
INTRODUCTION
The Public Works Fleet Services program supports City efforts to provide exceptional service to the community by procuring and maintaining over four-hundred and fifty (450) fleet vehicles and equipment. Each fleet vehicle has an estimated life expectancy based on the type of vehicle, its operational use, and the effectiveness of ongoing preventative maintenance and repair. Fleet Services staff perform routine preventative maintenance to help ensure that vehicles meet or exceed their estimated life expectancy. Each vehicle is thoroughly inspected when it meets the anticipated replacement period to assess whether replacement is warranted or if the vehicle can continue to be used past the recommended lifecycle. The vehicles in this report have met the criteria for replacement. These replacement vehicles will be used by the Beverly Hills Police Department as part of their efforts to keep the community safe.
BEVERL
HILLS
id
Meeting Date: February 19, 2025
DISCUSSION
Following an annual evaluation of the City’s vehicle and equipment fleet, Fleet Services staff has determined that the below-listed vehicles have exceeded their life expectancies:
ID # YEAR/MAKE/MODEL PROGRAM NO. / DESCRIPTION
002 2017 FORD FUSION HYBRID 00102104 / POLICE ADMIN
029 2016 DODGE CHALLENGER 00102704 / EMERG SRVS BUREAU
After a joint deliberation with the Police Department, Fleet Services concurred with the Police Department’s request to replace the two (2) vehicles indicated above with two (2) Toyota Highlander Hybrid SUV’s. These replacement Toyota Highlander Hybrids provide operational familiarity for the police officers and are proven to meet the application needs. The replacement vehicle selections were generated after conversations with Longo Toyota to determine which manufacturer order banks and specific vehicles were available. Staff anticipates bringing additional replacement vehicles to City Council for consideration in the coming months, as various vehicle order banks open.
Fleet Services staff are actively addressing challenges stemming from sporadic order banks, limited vehicle options, and cancellations. Despite ongoing supply chain issues, Fleet Services is working closely with vendors and City departments to secure available vehicles and ensure timely production and delivery, remaining flexible to meet fleet needs.
Fleet Services staff had conversations with National Auto Fleet Group representatives that indicated the vendor was not able to supply the Police Department vehicle selections as fleet specific vehicles under the Sourcewell procurement contract #091521-NAF. After careful evaluation of various purchasing options and pricing, Fleet Services determined the only available option to provide these overdue and much needed Police Department replacement vehicles was to purchase consumer specific vehicles from the City’s fleet contact at Longo Toyota. Longo Toyota agreed to provide the consumer specific vehicles at a discounted fleet price point without dealer mark-up.
Dealer mark-up is a standard purchasing direction for consumer specific vehicles, and Fleet Services research has indicated current conditions allow dealer mark-ups in the range of $5,000 to $10,000 per vehicle depending on the vehicle type. Staff determined that purchasing the vehicles from the City’s fleet contact at Longo Toyota gives the City the best availability and pricing opportunity.
FISCAL IMPACT
Funding for the purchase of these replacement vehicles is included in the Fiscal Year 2024/25 City Council approved Vehicle Replacement Fund budget. Fleet Services works closely with the Finance Department to ensure that sufficient funding is collected over the lifecycle of a vehicle to pay for a replacement. In some cases, the replacement collection schedules and amounts are adjusted to account for anticipated increases in replacement costs and upgrades to replacements when operational needs change.
Meeting Date: February 19, 2025
A summary of the vendor’s price quotes for the vehicles specified by the City of Beverly Hills (Attachment 1) is as follows:
One (1) 2025 or newer Toyota Highlander Hybrid Limited, Priced per the Attached Quote:
$48,190.00
City of Beverly Hills Additions: Extra Keys $1,003.56
Subtotal: $49,193.56
Document Fee: $85.00
Tax (9.5%): $4,681.46
Registration / Delivery: $693.75
Extended Warranty 7 Yrs / 100K Miles: $2,595.00
Unit Total: $57,248.77
Unit Total (x2): $114,497.54
Program # / Description of Fund Source Amount
49008501-850000-08502 / Vehicle Replacement $114,497.54 Shana Epstein,
Director of Public Works
Approved By
Attachment 1
City of Beverly Hills
Department of Public Works Services, Fleet Services Division
PRICE QUOTE REQUEST
Telephone: (310) 285-2484
FAX: (310) 278-1838
Item Group Component/Functional Description Price Quote
2. Dealer quote One (1)2025 or newer Toyota Highlander Hybrid Limited; to include all items specified in dealer quote and all manufacturer's standard _equipment, unless, specifically added or deleted herein 113769
MAJOR STANDARD FEATURES
13. Comfort features:
14. BSM
City of Beverly Hills options
15. Key:
16. 153
17. 16W
3. 4.
5. 6.
7. 8.
9. 10.
11. 12.
Color:
Tires
Powertrains
Seats/Interior Trim:
Transmission
Spare Tire
Brakes:
Electrical:
Safety:
Convenience:
MAGNETIC GRAY METALLIC and MIDNIGHT BLACK METALLIC
P235/45R18
2.5L
Black Fabrick
ECVT
Mini (STD)
Power-assisted; 4-wheel ABS
130-amp alternator
Front/Side-impact airbags
Power windows & door locks; tilt & power assisted steering; Cruise Control Dual Zone Automatic A/C
Blind Spot Monitor
-----
3 additional keys ( Four Total)
Front License Plate Bracket
Floor Mats
$48,190.00
INCL
INCL
INCL
INCL
INCL
INCL
INCL
INCL
INCL
INCL
INCL
INCL
$1,003.56
INCL
INCL
Replacing shop #
029/002
TERMS Net 30
SUBTOTAL $49,193.56
----=------=- -
DOC FEE $85.00
------- TAX(9.5)% $4,681.46
Registration/Delivery fees $693.75
-----=---- Extended warranty 7/100K_$2,595.00
Purchase price for (1) Unit $57,248.77
----=------=- - Purchase price for (2) Unit $114,497.54 ---- --
626 539 2403 Longo
3534 Peck Rd 213 422 5073 Cell
Longo Toyota
Heecher
El Monte, Ca 91731
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