CA Review ___AF___
Meeting Date: Dec. 6, 2022
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Bradley Northup, Public Works Superintendent [email protected], 442-339-5193
Christie Calderwood, Assistant Police Chief
[email protected], 442-339-2216
Subject: Appropriation of Additional Funds for Purchase of 34 Police Vehicles Districts All
Reco
mmended Action
Adopt a resolution authorizing the Deputy City Manager, Administrative Services, to appropriate an additional $313,675 to the Police Department’s fiscal year 2022-23 operating budget to provide the funds needed to complete the purchase of 34 fully outfitted marked police vehicles.
Executive Summary
The City Council approved the appropriation of $2.4 million to the Police Department’s fiscal year 2022 -23 operating budget on Aug. 30, 2022, for the purchase of 34 fully outfitted marked police vehicles to support the deployment of take -home vehicles. The price of the vehicles has since unexpectedly increased, so the City Council is being asked to authorize the appropriation of an additional $313,675 to the Police Department’s fiscal year 2022-23 operating budget to complete the purchase of the vehicles.
The City Council’s approval is required because Carlsbad Municipal Code Chapter 3.28 states that only the City Council can authorize the procurement of goods and services that will cost the city more than $100,000 per agreement year.
Discussion
The City Council approved the appropriation of $2.4 million to the Police Department’s fiscal year 2022 -23 operating budget for the purchase of 34 fully outfitted marked police vehicles o n Aug . 30, 2022, with Resolution No. 2022- 210.
Like many other government agencies, Carlsbad has been successfully and consistently using cooperative statewide contracts, such as leveraged purchase agreements, to Dec. 6, 2022
Item #7 Page 1 of 26
purchase Ford patrol vehicles since 2015. (Leveraged purchasing is when a public agency uses an existing competitively -bid contract as a template to form its own contract with a vendor to purchase on the same or similar terms. )
The cost estimate of $2.4 million that staff presented to the City Council was based on the State of California’s contract pricing at the time, which included a 2023 model year cost increase of 8%. This expected increase of 8% was four times larger than historical year - over-year model cost increases for this type of vehicle.
Just a few days af ter the City Council’s action , on Sept. 2, 2022, the State of California issued an addendum to its contract pricing. This addendum resulted in a base contract price that increase d from $37,976 per vehicle for the previous model year to $48, 339, a net increase of $ 10,363 per vehicle and an additional 27% increase to the base contract price.
Please note that the new cost of the vehicles the city has optioned to purchase , which include s all necessary accessories and factory options , equate s to a cost differen ce of $9,226 per vehicle over the originally estimated c ost that was budgeted, which adds up to a $313,675 difference for 34 fully outfitted vehicles.
This base contract price increase was determined by State of California contract administrators as justifiable within the terms of the state’s agreement , resulting in this addendum. Folsom Ford, the dealer awarded the State of California’s contract , provided this justification for the increase:
This past year has presented an extremely challenging environment for the global automotive industry due to the continuing global microchip shortage, major disruptions in the supply chain due to the war in Eastern Europe and other factors and the lingering impact of Covid. This unprecedented combination of events has contributed to logistical challenges and unpredictable manufacturing plant downtime.
Compounding matters, we are experiencing record inflation, greater than at any time in the last forty years. Inflation, as well as significant impacts on raw material costs are affecting new vehicle pricing. Given these circumstances, we have elected to raise the price on the Police Interceptor Utility for the 23 Model Year.
Staff have evaluated and compared the price increases to the s tate’s contract against other available cooperative contract purchase options and have concluded that despite this dramatic increase in purchase price , other cooperative contract purchase o ptions do not provide a lower purchase cost per vehicle .
Staff have also evaluated the option for the c ity to attempt a formal bidding process to purchase these vehicles, however , the quantity of vehicles that the c ity is planning to purchase would not be comparable in purchasing power to the quantity leveraged by the State of California’s contract. S taff have therefore concluded that using a formal bid ding process is not expected to provide a ny favorable purchase price option, and would only result in further procurement delays.
Dec. 6, 2022
Item #7 Page 2 of 26
The formal quote from Folsom Ford was received on Sept. 27, 2022. The quoted cost for each vehicle, with the city’s requested specific configuration modifications, is $ 54,182 after all taxes and fees . This cost is $11,876 more e xpensive than the previous model year vehicle of the same configuration. The resulting cost increase has pushed the total budget price for these vehicles above the $2 .4 million approved by the City Council on Aug . 30, 2022, and has result ed in this request for an additional $313,675 of appropriation .
The state’s September addendum also established a closure date of Sept. 8, 2022, as the last day to place orders for 2023 model year vehicles. The city already had a reservation to purchase the vehicles before that date.
However, if the city does not follow through with
that purchase reservation, it would need to begin the process anew in August 2023 for the 2024 model year vehicles, which would result in delays and additional costs.
Staff request that the City Council authorize an additional appropriation of $313,675 to the Police Department’s FY 2022-23 operating budget to complete the purchase of 34 fully outfitted marked police vehicles.
Options
Staff provide the following options for the City Council’s consideration:
1. Approve an additional appropriation of $313,675 to the Police Department’s FY 2022-23 operating budget for purchase of 34 fully outfitted marked police vehicles Pros
• Expedites completion of take-home vehicle deployments • Avoids unexpected price increases for future model years • Avoids reduction of vehicle fuel efficiency
• Utilizes existing purchase contracts
Cons
• Funding must come from General Fund Reserves
2. Do not approve an additional appropriation and direct staff to reduce the amount of patrol vehicles ordered in FY 2022-23 from 34 vehicles to 30 vehicles to stay within the appropriated budget and defer purchase of the remaining four vehicles to FY 2023-24 Pros
• Avoids additional funding expense to FY 2022-23 operating budgets Cons
• Would delay deployment of take-home vehicles
• Price increases for future model years of vehicles are unknown and will likely result in additional costs to the city
3. Do not approve an additional appropriation and direct staff to conduct additional research for alternative manufacturers and models of vehicles for police patrol use, if any are available, to stay within the appropriated budget Pros
• Could potentially result in a lower cost police patrol vehicle platform within budget constraints of current approved funding
Cons
• Would delay deployment of take-home vehicles
Dec. 6, 2022
Item #7 Page 3 of 26
• Would result in additional staff time to establish new vehicle purchase and outfitting contracts
• Would result in deployment of less fuel-efficient or non-hybrid patrol platform option
• Would result in a change in vehicle configuration, which requires additional familiarization and training of safety personnel
Staff recommend Option 1 for the City Council’s approval.
Fis cal Analysis
The one-time costs for additional appropriations, if approved, will be funded with the General Fund Reserve. Fleet Replacement Fund charges will be funded with the existing fund balance and future year increases will be incorporated into the annual budget process. Annual vehicle replacement fund contributions will increase by $39,207 beginning in FY 2023-24.
Additionally, staff have received cost estimates for take-home vehicle excess property and liability insurance that was not available prior to the Aug. 30, 2022, meeting. The estimated cost for this insurance is expected to be between $35,000-$45,000 in annual premiums, however, additional appropriations are not necessary at this time, as these costs will be captured in the FY 2023-24 budget.
Nex t Steps
Upon City Council approval of Option 1, the Deputy City Manager, Administrative Services, will appropriate $313,675 to the Police Department’s FY 2022-23 operating budget. The Police Department’s vehicle replacement fund will also be increased by $39,207 beginning in FY 2023-
24. Staff expect that with this approval, deployment of fully outfitted take-home vehicles would begin in the fourth quarter of FY 2022-23, with a completion of the take-home vehicle implementation by the fourth quarter of FY2023-24.
Environmental E valuation
This action does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
Public Notification
This item was noticed in accordance with the Ralph M. Brown Act and was available for public review at least 72 hours prior to the scheduled meeting date.
Exhibits
1. City Council resolution
2. State of California contract and addendum
3. Folsom Ford Quote
Dec. 6, 2022
Item #7 Page 4 of 26
RESOLUTION NO. 2022-273
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE APPROPRIATION OF ADDITIONAL FUNDS FOR THE PURCHASE OF 34 POLICE VEHICLES
WHEREAS, on Aug. 30, 2022, the City Council adopted Resolution No. 2022-210, approving the appropriation of $2.4 million to the Police Department's fiscal year, or FY, 2022-23 operating budget in support of take-home vehicle deployments; and
WHEREAS, on Sept. 2, 2022, staff were notified of an unanticipated addendum to the State of California's contract with price increases for 2023 Ford Utility Hybrid police vehicles exceeding 27% over the 2022 model year price; and
WHEREAS, State of California contract administrators approved this change to the cooperative contract at the request of Folsom Ford, which cited global microchip shortages, supply chain disruptions, the war in Eastern Europe, lingering logistical challenges from the COVID-19 pandemic, record inflation and significant cost increases of raw materials as justification for the price increase; and
WHEREAS, staff have evaluated the price increases to the state's contract against other available cooperative contract purchase options and have concluded that despite this dramatic increase in purchase price, other cooperative contract purchase options and other procurement options such as a formal bidding process do not provide a lower purchase cost per vehicle; and WHEREAS, approving this additional appropriation will expedite completion of the take-home vehicle deployments, avoid unexpected cost increases for future model years, avoid a change in vehicle fuel efficiency and utilize existing State of California-cooperative contracts; and WHEREAS, staff recommend an additional appropriation to complete the purchase of 34 fully outfitted police vehicles in FY 2022-23 in the amount of $313,675.
Exhibit 1
Dec. 6, 2022 Item #7 Page 5 of 26
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the Deputy City Manager, Administrative Services, is authorized to appropriate $313,675 to the Police Department's FY 2022-23 operating budget from the General Fund Reserve.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 6th day of December, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Norby.
None.
Hall.
for
FAVIOLA MEDINA, City Clerk Services Manager
(SEAL)
Dec. 6, 2022 Item #7 Page 6 of 26
Department of General Services
Procurement Division
707 Third Street, 2nd Floor
West Sacramento, CA 95605-2811
State of California
STATEWIDE CONTRACT
USER INSTRUCTIONS
All changes to most recent Supplem ent are in bold red italic. Additi ons ar e enclosed in asterisks, *, and deleti ons are enclosed in br ackets, [].
MANDATORY
*Supplement 1*
ISSUE AND EFFECTIVE DATE: *9/2/2022*
CONTRACT NUMBER: 1-22-23-14C
DESCRIPTION: Enforcement Vehicles, Police Pursuit
(Ford Explorer V6 AWD)
(Ford Explorer V6 AWD - HEV)
CONTRACTOR: Folsom Lake Ford
CONTRACT TERM: 5/11/2022 through 5/10/2025
STATE CONTRACT ADMINISTRATOR: Rudolph Jimenez
(279) 946-8312
[email protected]
The contract user instructions, products, and pricing are included herein. All purchase documents issued under this contract incorporate the contract terms and applicable California General Provisions:
Non-IT General Provisions, rev 06/08/2010
(https://www.dgs.ca.gov/-/media/DD14F21678F64EBFADBC227F2C517C79.ashx) Cal eProcure link: www.caleprocure.ca.gov
ORDER PLACEMENT INFORMATION
Mailing Address:
Folsom Lake Ford
12755 Folsom Blvd.
Folsom, CA 95630
Fax/Email:
Fax: (916) 353-2078
Email:
[email protected]
Contact Information:
Folsom Lake Ford
Mark Paoli
Phone: (916) 351-4202
Email:
[email protected]
Exhibit 2
Dec. 6, 2022
Item #7 Page 7 of 26
STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
All changes to most recent Supplement are in bold red italic. Additions are enclosed in asterisks; deletions are enclosed in brackets.
SUMMARY OF CHANGES
Supplement
Number Description/Articles Supplement
Date
*1* *Subject contract for Enforcement Vehicles,
Police Pursuit is hereby modified to reflect the
following changes:
• Attachment A – Contract Pricing,
Supplement 1 has been updated to
reflect a price increase.
• Effective September 9, 2022, orders for
23MY will not be accepted and 23MY
vehicles will not be available until further
notice.
Note: The cut-off date to submit orders for
23MY is close of business September 8, 2022.*
*9/2/2022*
N/A Original Contract Posted
5/11/2022
All other terms and conditions remain the same.
Dec. 6, 2022
Item #7 Page 8 of 26
STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
Dec. 6, 2022
Item #7 Page 9 of 26
TABLE OF CONTENTS
1. SCOPE .................................. ............................................................................................ 5
2. CONTRACT USAGE/RULES .................................................................. .......................... 5
3. DGS ADMINISTRATIVE FEES .......................................................................................... 6
4. SB/DVBE OFF-RAMP PROVISION ................................................................................... 6
5. EXEMPT PURCHASES ...................................................... ............................................... 6
6. PROBLEM RESOLUTION/SUPPLIER PERFORMANCE ............................... .................. 6
7. CONTRACT ITEMS .............................. ............................................. ................................ 7
8. SPECIFICATIONS ............................................................................................................. 7
9. CUSTOMER SERVICE ..................................................................................................... 7
10. PRODUCT SUBSTITUTIONS ........................................................................................... 7
11. PROMOTIONAL PRICING ................................................................................................ 7
12. PURCHASE EXECUTION ................................................................................................. 8
13. MINIMUM ORDER .......................... ................................................................................... 8
14. ORDERING PROCEDURE ................................................ .............................. ................. 9
15. ORDER ACCEPTANCE .................................................................................................... 9
16. ORDER RECEIPT CONFIRMATION ................................................................................. 9
17. OUT OF STOCK REMEDY ............................................................................................. 10
18. DISCONTINUED ITEM REMEDY .................................................................................... 10
19. DELIVERY SCHEDULES ................................................... ............................................. 10
20. FREE ON BOARD (F.O.B.) DESTINATION ................................................................ .... 11
21. SHIPPED ORDERS ......................................................................................................... 12
22. PACKING SLIP ............................... ................................................................................. 12
23. PACKING LABEL ............................................................................................................ 13
24. SAFETY DATA SHEET ...................................... ..................... ........................................ 13
25. INSPECTION AND ACCEPTANCE ........................................................ ......................... 13
26. CONTRACT ADMINISTRATION ..................................................................................... 13
27. RETURN POLICY ............................................................................................................ 14
28. CREDIT POLICY ............................................................................................................. 14
29. RESTOCKING FEES ............................................................................................. .......... 15
30. INVOICING .............................................................................................. ........................ 15
31. PAYMENT .......... ,. ............................................................................................................ 15
32. CALIFORNIA SELLER'S PERMIT ........................................................... ........................ 16
STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
Dec. 6, 2022
Item #7 Page 10 of 26
33. WARRANTY .................................................................................................................... 16
34. WARRANTY REPAIR PARTS ......................................................................................... 17
35. RECYCLED CONTENT ...................................................... ............................................. 17
36. SB/DVBE PARTICIPATION ............................................................................................. 18
37. ATTACHMENTS ...................................................................................... ........................ 18
STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
SCOPE
The State’s contract with Folsom Lake Ford (Contractor) provides Enforcement Vehicles, Police Pursuit at contracted pricing to the State of California and local governmental agencies in accordance with the requirements of Contract # 1-22-23-14C. The Contractor shall supply the entire portfolio of products as identified in the contract and will be the primary point of contact for data collection, reporting, and distribution of Enforcement Vehicles, Police Pursuit to the State.
The contract term is for three (3) years with an option to extend the contract for two (2) additional one (1) year period or portion thereof. The terms, conditions, and prices for the contract extension option shall be by mutual agreement between the Contractor and the State. If a mutual agreement cannot be met the contract may be terminated at the end of the current contract term.
CONTRACT USAGE/RULES
A. State Departments
• The use of this contract is mandatory for all State of California departments. • State departments must adhere to all applicable State laws, regulations, policies, best practices, and purchasing authority requirements, e.g. California Codes, Code of Regulations, State Administrative Manual, Management Memos, and State Contracting Manual Volume 2, as applicable.
• Prior to placing orders against this contract, State departments must have been granted non-IT purchasing authority by the Department of General Services, Procurement Division (DGS-PD) for the use of this statewide contract. State departments that have not been granted purchasing authority by DGS-PD for the use of the State’s statewide contracts may contact DGS-PD’s Purchasing Authority Management Section by e-mail at [email protected].
• State departments must have a Department of General Services (DGS) agency billing code prior to placing orders against this contract. Ordering departments may contact their Purchasing Authority contact or their department’s fiscal office to obtain this information.
B. Local Governmental Agencies
• Local governmental agency use of this contract is optional. • Local government agencies are defined in Public Contract Code Chapter 2, Section 10298 (a) (b) and 10299 (b); this includes the California State Universities (CSU) and University of California (UC) systems, K-12 schools and community colleges empowered to expend public funds for the acquisition of products While the State makes this contract available to local governmental agencies, each local governmental agency should determine whether this contract is consistent with its procurement policies and regulations.
Dec. 6, 2022
Item #7 Page 11 of 26
1. 2.
STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
• Local governmental agencies shall have the same rights and privileges as State departments under the terms of this contract. Any local governmental agencies desiring to participate shall be required to adhere to the same responsibilities as do State departments and have no authority to amend, modify or change any condition of the contract.
• A DGS issued billing code is not required for local governmental agencies to place orders against this contract.
C. Unless otherwise specified within this document, the term “ordering agencies” will refer to all State departments and/or local governmental agencies eligible to utilize this contract. Ordering and/or usage instructions exclusive to State departments or local governmental agencies shall be identified within each article.
DGS ADMINISTRATIVE FEES
A. State Departments
The DGS will bill each State department an administrative fee for use of this statewide contract. The administrative fee should NOT be included in the order total, nor remitted before an invoice is received from DGS.
Current fees are available online in the Price Book & Directory of Services (https://www.dgs.ca.gov/OFS/Price-Book) (go to Price Book Download and click on Purchasing under Procurement Division).
B. Local Governmental Agencies
For all local government agency transactions issued against the contract, the Contractor is required to remit the DGS-PD an Incentive Fee of an amount equal to
1.25 percent of the total purchase order amount excluding taxes and freight. This Incentive Fee shall not be included in the local governmental agency’s purchase price, nor invoiced or charged to the local governmental agency. All prices quoted to local governmental agencies shall reflect State contract pricing, including any and all applicable discounts, and shall include no other add-on fees.
SB/DVBE OFF-RAMP PROVISION
There is no SB/DVBE off ramp associated with this contract.
EXEMPT PURCHASES
There are no exempt purchases associated with this contract.
PROBLEM RESOLUTION/SUPPLIER PERFORMANCE
Ordering agencies and/or Contractor shall inform the State Contract Administrator of any technical or contractual difficulties encountered during contract performance in a timely manner. This includes and is not limited to informal disputes, supplier performance, Dec. 6, 2022
Item #7 Page 12 of 26
3. 4.
5. 6.
STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
outstanding deliveries, etc. The ordering agency should include all relevant information and/or documentation (e.g., purchase documents).
CONTRACT ITEMS
All line items are listed on Attachment A – Contract Pricing.
SPECIFICATIONS
All products listed on Attachment A, Contract Pricing, conform to Attachment B1, Specifications 2310-5644, dated 9/30/2021 and Attachment B2, Specifications 2310-5712, dated 9/30/2021.
CUSTOMER SERVICE
Contractor will provide office and personnel resources for responding to requests, including telephone coverage weekdays during the hours of 8:00 AM through 5:00 PM (PT).
Contact Phone Email
Customer Service Unit (916) 351-4202 [email protected]
PRODUCT SUBSTITUTIONS
Product substitution shall be in accordance with the General Provisions (rev 06/08/10), Article 16 entitled “Substitutions”.
PROMOTIONAL PRICING
During special pricing promotions, the Contractor shall offer the ordering agency the promotional pricing or the discount percentage off list, whichever is lower.
The Contractor shall notify the State Contract Administrator of all promotional pricing changes. Notification shall include at a minimum:
• Promotion start and end dates
• Models, products, and services included in the promotion • Promotional pricing
Promotional pricing shall not be cause for a permanent change in pricing. Promotional pricing shall not be cause for Contractor refresh.
Promotional items shall come with all benefits of the statewide contract terms and conditions and shall include all provisions such as warranty and delivery.
Dec. 6, 2022
Item #7 Page 13 of 26
7. 8.
9. 10.
11. STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
PURCHASE EXECUTION
A. State Departments
1) Std. 65 Purchase Documents
State departments not transacting in FI$CAL must use the Purchasing Authority Purchase Order (Std. 65) for purchase execution. An electronic version of the Std. 65 is available at the Office of State Publishing web site (https://www.dgsapps.dgs.ca.gov/osp/StatewideFormsWeb/Forms.aspx) (select STD Forms).
All Purchasing Authority Purchase Orders (Std. 65) must contain the following:
• Agency Order Number (Purchase Order Number)
• Ordering Agency Name
• Agency Billing Code
• Purchasing Authority Number
• Leveraged Procurement Number (Contract Number)
• Supplier Information (Contact Name, Address, Phone Number, Fax Number, E-mail)
• Line Item number
• Quantity
• Unit of Measure
• Commodity Code Number
• Product Description
• Unit Price
• Extension Price
2) FI$CAL Purchase Documents
State departments transacting in FI$CAL will follow the FI$CAL procurement and contracting procedures.
3) Blanket Orders
The use of blanket purchase orders against this statewide contract is not allowed.
B. Local Governmental Agencies
Local governmental agencies may use their own purchase document for purchase execution. The purchase documents must include the same data elements as listed above (Exception: Purchasing Authority Number and Billing Code which are used by State departments only).
MINIMUM ORDER
The minimum order shall be one (1) vehicle
Dec. 6, 2022
Item #7 Page 14 of 26
12. 13.
STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
ORDERING PROCEDURE
Ordering agencies are to submit appropriate purchase documents directly to the Contractor via one of the following ordering methods:
• U.S. Mail
• Facsimile
• Email
The Contractor’s Order Placement Information is as follows:
ORDER PLACEMENT INFORMATION
U.S. Mail:
Folsom Lake Ford
12755 Folsom Blvd.
Folsom, CA 95630
Facsimile: (916) 353-2078
Email:
When using any of the ordering methods specified above, all State departments must conform to proper State procedures.
ORDER ACCEPTANCE
The Contractor shall accept orders from any ordering agency. The Contractor shall not accept purchase documents for this contract that:
• Are incomplete
• Contain non-contract items
• Contain non-contract terms and conditions
The Contractor must not refuse to accept orders from any ordering agency for any other reason without written authorization from the State Contract Administrator.
ORDER RECEIPT CONFIRMATION
The Contractor will provide ordering agencies with an email or facsimile order receipt confirmation within forty-eight (48) hours of receipt of purchase document. The Order Receipt Confirmation shall include the following information:
• Ordering agency name
• Agency order number (purchase order number)
• Purchase order total cost
• Anticipated delivery date
Dec. 6, 2022
Item #7 Page 15 of 26
14. 15.
16. STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
OUT OF STOCK REMEDY
Upon receipt of an order acknowledgment identifying out of stock items, the ordering agencies shall have the following options:
• Request a back order
• Cancel the item from the order with no penalty
The Contractor will provide notification to the ordering agencies regarding out-of-stock items which have been back ordered.
Under no circumstance is the Contractor permitted to make substitutions with non-contract items or unauthorized products.
DISCONTINUED ITEM REMEDY
Upon receipt of an order acknowledgment identifying discontinued items, the ordering agencies shall have the following options:
• Amend purchase document to reflect State-approved substitute item (per Article 10, Product Substitutions)
• Cancel the item from the order
Under no circumstance is the Contractor permitted to make substitutions with non-contract items or unauthorized products without approval from the State Contract Administrator.
DELIVERY SCHEDULES
Delivery for orders placed against this contract shall be in accordance with the following:
A. Pre-Delivery Checklist
Prior to delivery, each vehicle shall be completely inspected, serviced, and detailed by the delivering dealer and/or the manufacturer’s pre-delivery service center. A copy of the pre-delivery checklist shall be completed for each vehicle, signed by a representative of the organization performing the inspection/service, and delivered with the vehicle.
B. Delivery Documents
The following documents shall be delivered to the receiving agency with the vehicle:
• Completed and signed pre-delivery service checklist, including the order number and Vehicle Identification Number (VIN)
• “Line Set Tickets” or “Window Sticker” showing all options installed • One (1) copy of the vehicle warranty
• One (1) Owner’s Manual
• Speed Calibration documentation for each vehicle
Dec. 6, 2022
Item #7 Page 16 of 26
17. 18.
19. STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
C. Locations
Deliveries are to be made (statewide) to the location specified on the individual purchase order, which may include, but not limited to inside garages and parking lots.
D. Schedule
Delivery made to any State department is to begin within ninety (90) days after receipt of order (ARO). State departments may limit delivery to a maximum of ten (10) units per working day.
Delivery to local agencies is to be completed in full within 150 days ARO.
Since receiving hours for each ordering agency will vary by facility, it will be the Contractor’s responsibility to check with each facility for their specific delivery hours before delivery occurs. The Contractor must notify the ordering agency within twelve (12) hours of scheduled delivery time, if delivery cannot be made within the time frame specified on the Order Confirmation.
Contractor is requested to make deliveries in Los Angeles County, Orange County, San Bernardino Metropolitan Area, and San Diego Metropolitan Area during off-peak hours. Off-peak hours are Monday through Friday, 10:00 AM to 4:00 PM.
E. Security Requirements
Deliveries may be made to locations inside secure grounds that require prior clearances or special entry procedures for delivery drivers.
Security procedures may vary from facility to facility. The Contractor will be responsible for contacting the secure location for security procedures, hours of operation for deliveries and service, dress code, and other rules of delivery.
Deliveries that are delayed due to drivers not being cleared to enter secure grounds may be cause for contract default.
FREE ON BOARD (F.O.B.) DESTINATION
All prices offered shall be F.O.B. destination; freight prepaid by the Contractor, to the ordering agency’s receiving point. Responsibility and liability for loss or damage for all orders shall remain with the Contractor until final inspection and acceptance, when all responsibility shall pass to the ordering agency, except the responsibility for latent defects, fraud, and the warranty obligations.
The Contractor will be required to deliver vehicles to State agencies or local agencies FOB Destination, Sacramento County. Additionally, delivery shall be FOB Destination to the California Highway Patrol (CHP), Fleet Operations, 3300 Reed Ave., West Sacramento, California 95605.
Dec. 6, 2022
Item #7 Page 17 of 26
20. STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
Vehicles shall be delivered from the factory to the Contractor’s place of business. If the purchase order indicates delivery outside an FOB point, the Contractor and agency will negotiate for delivery beyond the FOB point. This delivery may be subject to an additional delivery charge by the resulting contractor(s). This charge shall be shown as a separate item on the purchase order and invoice.
State agencies requesting delivery outside the FOB area must contact the Transportation Management Unit for freight rate comparisons if the Contractor is delivering the vehicle.
These delivery instructions will be provided on the purchase order. Contractors receiving a purchase order without specific transportation instructions must contact the ordering agency.
Caravan or drive-away method of delivery from the factory to a dealer is not acceptable.
The supplier shall insure that each vehicle reaches its delivery point with no less than five (5) gallons of fuel in the fuel tank.
Drop ship deliveries shall not be made without prior State inspection.
Vehicles delivered from a Contractor with more than 50 miles on the odometer will be charged 50 cents for each mile exceeding 50 miles. This charge shall be deducted from the order price for each vehicle delivered against each order. Vehicles delivered with more than 250 miles on the odometer will not be accepted.
SHIPPED ORDERS
All shipments shall be in accordance with the General Provisions, Article 12 entitled “Packing and Shipment”.
PACKING SLIP
A packing slip will be included with each shipment, which will include at least the following information in no particular order:
• Agency order number (purchase order number)
• Ordering agency name
• Line item description
• Quantity ordered
• Quantity included in shipment
• Any back ordered or out of stock items and availability date of unfilled and partial shipment
• Number of parcels
• Destination
• All information contained on the packing label
Dec. 6, 2022
Item #7 Page 18 of 26
21. 22.
STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
PACKING LABEL
A packing label will also be included with each order shipped and include the following items, visible on the outside of the box:
• Ordering agency name
• Delivery address, unit, and/or floor
• Department and floor
• Ordering agency contact name
• Ordering agency telephone number
SAFETY DATA SHEET
The Contractor shall provide a Safety Data Sheet for product(s) subject to Title 8 of the California Code of Regulations, Section 5194, Hazard Communication. The Safety Data Sheet is to be prepared and delivered in accordance with this Section.
INSPECTION AND ACCEPTANCE
Vehicles ordered for State use will be inspected by a State Inspector at the Contractor’s place of business. Inspection by local agencies will be at the Contractor’s place of business or as otherwise agreed to by the dealer and local purchasing agency. Inspection will commence within five (5) State working days of notification that a vehicle is ready for inspection. Inspection will include: specification compliance, workmanship, appearance, proper operation of all equipment and systems, and that all documents are present. In the event deficiencies are detected, the vehicle will be rejected and the delivering Contractor will be required to make the necessary repairs, adjustments or replacements. Payment and/or the commencement of a discount period (if applicable) will not begin until the defects are corrected and the vehicle is re-inspected and accepted.
Completion of inspection or acceptance by the State Inspector shall in no way release the Contractor from satisfying the requirements of the contract, specifications, and warranty.
Deviations from the specified requirements that are detected by the inspection shall be corrected by the Contractor in an expeditious manner at no expense to the owning agency.
Inspection by local agencies will be at the dealer’s place of business or as otherwise agreed to by the dealer and local purchasing agency.
CONTRACT ADMINISTRATION
Both the State and the Contractor have assigned contract administrators as the single points of contact for problem resolution and related contract issues.
Dec. 6, 2022
Item #7 Page 19 of 26
23. 24.
25. 26.
STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
Administrator
Information DGS-PD Folsom Lake Ford
Contact
Name:
Rudolph Jimenez Mark Paoli
Telephone: (279) 946-8312 (916) 951-4202
Facsimile: (916) 375-4613 (916) 353-2078
Email: [email protected] [email protected] Address: DGS/Procurement Division
Attn: Rudolph Jimenez
707 Third Street, 2nd Floor, MS 201
West Sacramento, CA 95605
Folsom Lake Ford
Attn: Mark Paoli
12755 Folsom Blvd.
Folsom, CA 95630
RETURN POLICY
The Contractor will accept all products for return at no cost to the ordering agency within thiry (30) calendar days of delivery, and refund the customer in full.
Products returned should be in the packaging as delivered and include all documentation.
Lost or damaged packaging materials and/or documentation shall be supplied by the Contractor. The Contractor shall not charge for these materials in excess of the Contractor’s cost or the 10 percent restocking fee, whichever is lower. The Contractor shall provide the State Contract Administrator and/or ordering agency a copy of the Contractor’s material cost, if requested, within ten (10) days of request.
All returns shall be picked up within seven (7) working days of notification. Notification is defined as notice in writing, by facsimile, or e-mail.
CREDIT POLICY
The Contractor shall offer a credit/refund for the following items:
• Items shipped in error
• Items that are returned within thirty (30) calendar days of delivery • Defective or freight-damaged items
In all cases, the ordering agency shall have the option of taking an exchange or receiving a credit, or receiving a refund.
The Contractor will be responsible for the credit or replacement of all products, including those covered by manufacturer warranties. The Contractor cannot require the ordering agency to deal directly with the manufacturer.
Dec. 6, 2022
Item #7 Page 20 of 26
27. 28.
STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
RESTOCKING FEES
The Contractor will not impose a restocking fee on the ordering agency for the following situations:
• Items returned that were damaged upon receipt
• Incorrect items shipped
• Items that are returned within thirty (30) calendar days of delivery • Items that are returned, but exchanged for other items within thirty (30) calendar days Re-stocking fees for all other reasons shall be 10 percent of the value of the items to be re-stocked.
The packaging and documentation provisions in accordance with Article 27, Return Policy, shall apply to re-stocked items.
The Contractor will not be required to accept returns more than sixty (60) days after delivery. The ordering agency will be responsible for return transportation costs to the Contractor if so accepted after sixty (60) days after delivery.
INVOICING
Ordering agencies may require separate invoicing, as specified by each ordering agency.
Invoices will contain the following information:
• Contractor’s name, address and telephone number
• Leveraged Procurement Agreement Number (Contract Number) • Agency order number (purchase order number)
• Item and commodity code number
• Quantity purchased
• Contract price and extension
• State sales and/or use tax
• Prompt payment discounts/cash discounts, if applicable • Totals for each order
PAYMENT
A. Terms
Payment terms for this contract are net forty-five (45) days. Cash Discount of $500 per unit for payment within twenty (20) days. Payment will be made in accordance with the provisions of the California Prompt Payment Act, Government Code Section 927, et seq. Unless expressly exempted by statute, the Act requires State departments to pay properly submitted, undisputed invoices not more than forty-five (45) days after the date of acceptance of goods, performance of services, or receipt of an undisputed invoice, whichever is later.
Dec. 6, 2022
Item #7 Page 21 of 26
29. 30.
31. STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
B. CAL-Card Use
Use of the CAL-Card for payment of invoices is not allowed under this statewide contract.
C. State Financial Marketplace
State departments reserve the right to select the form of payment for all procurements, be it either an outright purchase with payment rendered directly by the State, or a financing/lease-purchase or operating lease via the State Financial Marketplace (GS $Mart and/or Lease $Mart). If payment is via the financial marketplace, the Contractor will invoice the State department and the State department will approve the invoice and the selected Lender/Lessor for all product listed on the State's procurement document will pay the Contractor on behalf of the State.
D. Payee Data Record
Each State department’s accounting office must have a copy of the Contractor’s Payee Data Record (Std. 204) in order to process payments. State departments should forward a copy of the Std. 204 to their accounting offices. Without the Std. 204, payment may be unnecessarily delayed. State departments should contact the Contractor for copies of the Payee Data Record.
CALIFORNIA SELLER’S PERMIT
The California seller permit number for the Contractor is listed below. Ordering Agencies can verify that permits are currently valid at the following website: www.cdtfa.ca.gov.
State departments must adhere to the file documentation identified in the State Contracting Manual Volume 2.
Contractor Name Seller Permit #
Folsom Lake Ford 26-797640
WARRANTY
The manufacturer’s regular new vehicle warranty shall apply to all vehicles procured against the resulting contract.
The warranty shall be factory authorized and shall cover not less than 3 years/36,000-mile bumper to bumper, no charge parts and labor. All emission-related components shall be warranted in compliance with the California Air Recourses Board (CARB) and Federal requirements. Bids offering independent insurance or a statement indicating self-insurance will be deemed non-responsive and will be rejected.
This warranty shall be honored by all franchised dealers of the vehicle within the State of California. The State’s established preventative maintenance procedures and practices shall be acceptable to the manufacturer/dealers in lieu of the manufacturer’s prescribed Dec. 6, 2022
Item #7 Page 22 of 26
32. 33.
STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
procedures, which may form a part of the warranty. All warranty certificates and/or cards shall be supplied with each vehicle delivered.
If an additional extended warranty is purchased, a warranty certificate, warranty card, or a statement indicating the extended warranty has been recorded with the manufacturer shall be furnished with each vehicle delivered.
Normal wear items such as tires, belts, hoses, headlamps, light bulbs, brake linings, brake discs/drums, etc. are excluded from warranty coverage. All other items not subject to normal wear or gross operator neglect and abuse, such as window, seat or wiper motors, chassis electrical switches (door, trunk lid), paint, hinges, locks, etc., shall be covered.
The State reserves the right to use re-refined lubrication oils, where available, in lieu of the virgin equivalent oils. The re-refined oils used by the State will meet all API and SAE standards and specifications as set forth by the vehicle manufacturer. The use of said oils shall in no way void or degrade the original manufacturer’s minimum 3-year/36,000-mile warranty.
The State reserves the right to use recycled content antifreeze/coolant, where available, in lieu of virgin equivalent antifreeze/coolant, in servicing its vehicles. The recycled antifreeze/coolant used by the State will meet all ASTM standards and specifications as set forth by the vehicle manufacturer. The use of said recycled antifreeze/coolant shall in no way void or degrade the original manufacturer’s minimum 3-year/ 36,000-mile warranty.
“Manufacturer’s Warranty Policy and Procedures Manual” shall be made available upon customer request. The solicitation shall also require each awarded Bidder to designate by name, a responsible contact and alternate assigned for the duration of the contract, who will resolve State warranty-related claims on a priority basis.
Note: Vehicles not placed in service immediately upon receipt shall be warranted from the date the unit is placed in service. The receiving agency shall notify the dealer in writing of the actual “in-service” date.
WARRANTY REPAIR PARTS
It shall be the responsibility of the Contractor to maintain an adequate stock of all regular and special parts to meet the continuing service and warranty repair parts needs of the State without undue delay. A special system shall be set up for expediting the procurement of back order items needed to repair an inoperative vehicle including a system to air freight parts at the Contractor’s expense when parts are not in stock in California parts depots.
Warranty replacement parts shall be available within three (3) working days after telephone notification.
RECYCLED CONTENT
There is no recycled content associated with this contract.
Dec. 6, 2022
Item #7 Page 23 of 26
34. 35.
STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 1
SB/DVBE PARTICIPATION
There is no Small Business (SB) or Disabled Veteran Business Enterprise (DVBE) participation for this contract.
ATTACHMENTS
*Attachment A – Contract Pricing, Supplement 1*
Attachment B1, Specifications 2310-5644, dated 9/30/2021 Attachment B2, Specifications 2310-5712, dated 9/30/2021 Dec. 6, 2022
Item #7 Page 24 of 26
36. 37.
PRICE QUOTATION
FOLSOM LAKE FORD
12755 FOLSOM BLVD.
FOLSOM, CA 95630
(916) 351-4202 - Direct Date: 9/29/2022
To: Bradley Northup/ P.W. Superintendent/ City of Carlsbad (34 Agate Black PIUs) From: Mark A. Paoli/ Government Sales Manager/ Folsom Lake Ford Subject: Pricing for 2023 Ford Interceptor (State of California Contract #l-22-23-14C) $48,339.00 - Bid Price (2023 Ford Police Interceptor Utility A WD / 3.3L V6 Hybrid Eng) -2,853 .00 - Ballistic Door Panel Delete
$45,486.00 - Subtotal (Bid Price Less Deletions)
705.00 - Police Perimeter Alert (68B)
665.00 - Spot Lamps - Dual LED Whelen (51 V)
637.00 - Auxiliary Air Conditioning (17A)
586.00 - Ultimate Wiring Package (67U)
569.00 - Blind Spot Monitoring w/Cross-Traffic Alert (55B) 273.00 - Police Engine Idle Feature (47A)
255.00 - Cargo Storage Vault (63V)
240.00 - Rear Camera On-Demand (19V)
151.00 - Pre-Collision Assist w/Pedestrian Detection (76P)
57.00 - OBD-II Split Connector (6 lB) - Reccomended by Upfitters
54.00 - Dome Lamp Red/White Lighting in Cargo Area (17T)
54.00 - Keyed Alike - Code 111 lX (59J)
$49,732.00 - Selling Price
85.00 - Documentation Fee
$49,817.00 - Subtotal
3,860.82 - Sales Tax (7.75%)
495.00 - Delivery to Carlsbad, CA
8.75 - California Tire Fee
$54,181.57 - Total Price (EACH)
X34
$1,842,173.38 - Total (34-Vehicles) F.O.B. Carlsbad, CA Payment Terms: $500.00 Discount Per Vehicle 20 Days or Net 30.
Exhibit 3
Dec. 6, 2022
Item #7 Page 25 of 26
Note: Dark Car Feature, Ford Telematics (Includes Built In Modem and Complimentary Two-Year Subscription), Front License Plate Bracket, Noise Suppression, Rear View Camera (Displayed In Rear View Mirror), Reverse Sensing, SYNC (Bluetooth), Trailer Hitch (Class III - Includes Wiring), Upfitter Switches Mounted on Steering Wheel and a 5yr/100k/0ded Powertrain Warranty Included In Bid.
Dec. 6, 2022
Item #7 Page 26 of 26