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January 24, 2023
ITEM TITLE
Purchase Award: Waive the Competitive Bid Process and Approve the Purchase of Ford Maverick XL Vehicles from Penske Ford La Mesa
Report Number: 23-0014
Location: No specific geographic location
Department: Police & Finance
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt a resolution waiving the competitive bid process and authorizing the purchase of five Ford Maverick vehicles from Penske Ford La Mesa.
SUMMARY
Due to ongoing supply chain issues, staff has experienced delays in procuring new vehicles. Police staff recently received a quote to purchase five Ford Mavericks from Penske Ford La Mesa for a total cost of $131,107. Staff recommends that City Council waive the competitive bid process and approve the purchase of these vehicles. Funding for this purchase, along with related outfitting costs, are appropriated in the Measure A Fund.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
Thus, no environmental review is required.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
During its regular meeting held on October 13, 2022, the Measure A Citizens’ Oversight Committee (COC) recommended City Council approve additional Community Services Officer positions, along with associated equipment and vehicles, based on the Police Department’s available fund balance in the Measure A Sales Tax Fund.
DISCUSSION
Due to continued supply chain issues, timeframes for new vehicle purchases continue to be impacted. Police staff has been working with Purchasing staff to identify purchasing options that allows the City to procure new vehi cles in a timely manner . Timely purchases are necessary to meet operational needs of the department and minimize the impact of service delivery to the community.
Police staff recently received a quote to purchase five (5) Ford Mavericks from Penske Ford La Mesa for Community Service Officers (CSO) who are working in the field and serving the community. These five vehicles are currently in stock and have been reserved for the Police Department to purchase. The total cost of these five vehicles from Penske Ford is $131,107 ($26,221.31 per vehicle). These vehicles are additions to the Police Department’s existing fleet and will be funded by Measure A.
Purchasing the vehicles from Penske Ford will allow the Police Department to minimize service interruptions to Patrol operations. Due to the ongoing supply chain shortages and the time delays associated with direct fleet orders, staff recommends moving forward with the purchase of these vehicles from Penske Ford La Mesa to avoid manufacturing delays associated with alternate purchase options.
Per the Chula Vista Municipal Code (CVMC), purchases over $100,000 shall be awarded to the lowest responsive and responsible bidder following a competitive bid process. However, CVMC section 2.56.070.B.3 allows the City Council to waive the competitive bid requirements if they are impractical, impossible, or that City interests would be materially better served by applying a different purchasing procedure approved by the Purchasing Agent as being consistent with good purc hasing practices. Going through a competitive bid process or a direct fleet order would result in an extended lead time. Due to supply chain issues, vehicles can take up to one year after ordering to arrive. Purchasing the vehicles from Penske Ford La Mesa would relieve the Police Department ’s immediate need for vehicles for newly-hired Community Service Officers.
Purchasing Agent has determined that, given the limited inventory and immediate need for vehicles, the proposed purchase is consistent with good purchasing practices to minimize interruptions to services.
Therefore, staff recommends that City Council waive the competitive bid process as the City’s interests would be materially better served with the timely purchase of five Ford Mavericks from Penske Ford La Mesa versus utilizing traditional competitive procurement methods.
Funding for these vehicles is available in the Measure A Fund. In addition to the purchase cost of the vehicles, associated outfitting costs and replacement fund contributions are also included in the Measure A Fund.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not P a g e | 3
applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
The $131,107 cost of the five vehicles and associated outfitting costs are included in the Measure A Fund budget. Approval of this resolution has no net fiscal impact to the General Fund.
ONGOING FISCAL IMPACT
The ongoing fiscal impact associated with this purchase is for regular Fleet Maintenance Charges and Vehicle Replacement funding. These costs will be budgeted in the Police Department’s Measure A Fund and will be considered as part of the annual budget development process.
ATTACHMENTS
None.
Staff Contact: Jonathan Alegre, Police Department