Agenda #: 4.8
Meeting Date: September 20, 2022
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: AUTHORIZATION TO PARTICIPATE WITH SOURCEWELL TO
PURCHASE FLEET VEHICLES FOR THE CITY FROM NATIONAL
AUTO FLEET GROUP IN THE AMOUNT NOT-TO-EXCEED
$107,456.72 DURING FISCAL YEAR 2022/2023.
STRATEGIC
GOAL: Responsible Stewardship of Public Resources
RECOMMENDATION:
A. Appropriate $5,457 from the Vehicle Maintenance & Replacement Fund (Fund 502) Fund Balance; and
B. Adopt Resolution No. 2022-50 authorizing participation with Sourcewell for the purchase of two (2) zero-emission vehicles through National Auto Fleet Group for Fiscal Year 2022/23.
FINANCIAL IMPACT:
In FY 2022/23, there is $102,000 available in the Vehicle Maintenance & Replacement Fund (Fund 502) which includes $20,000 of Mobile Source Air Pollution Reduction Review Committee (MSRC) Grant funding provided by the South Coast Air Quality Management District (SCAQMD). The total purchase price for the two (2) proposed new zero-emission vehicles (Ford F-150 Lightning) is $107,456.72. An additional appropriation of $5,457 from the Vehicle Maintenance & Replacement Fund Balance is needed to cover the shortfall. With the $20,000 MSRC grant, reimbursable upon purchase, the total net cost of this purchase for the City will be $87,456.72.
BACKGROUND/DISCUSSION:
The City's purchasing ordinance, codified in Chapter 3.24 of the Diamond Bar Municipal Code, generally requires the use of formal bidding procedures for the procurement of goods and services that cost in excess of $45,000. Section 3.24.090 (f) provides an exception as follows: "When supplies, personal property, services or equipment can be
more efficiently or more cost-efficient obtained through a cooperative purchasing program with a federal, state, county, local or other government purchasing program.
Such purchases through a cooperative purchasing program shall be authorized by resolution of the City Council."
The City has participated in cooperative bidding programs over the years, in order to procure goods and services, at competitive prices. At this time, staff have secured two (2) build spots, with Ford, through National Auto Fleet Group, who currently have an awarded contract through Sourcewell (Contract 091521-NAF).
Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that facilitates a competitive public solicitation and contract award process for the benefit of its 50,000+ participating entities across the United States and Canada.
Sourcewell’s solicitation process complies with State of Minnesota law and policies, conforms to Canadian trade agreements, and results in cooperative purchasing solutions from which Sourcewell’s participating entities procure equipment, products, and services.
Participation in cooperative bidding programs, such as Sourcewell, provides the City with the purchasing power of a much larger organization and a higher economy of scale. This, in turn, can provide the City with more completive pricing and availability of goods and services.
Staff evaluated the Sourcewell Contract 091521-NAF with National Auto Fleet Group, and have determined that the competitive solicitation process, meets and, or exceeds, the City’s purchasing requirements. It is recommended that the City forgo its separate bidding process and utilize the bidding process conducted by Sourcewell in order to purchase the two (2) new zero-emission vehicles (Ford F-150 Lightning), through National Auto Fleet Group, for a total price of $107,456.72.
The attached Resolution (Attachment 1) has been prepared in compliance with Diamond Bar Municipal Code Section 3.24.090 (f). A copy of the Sourcewell quotation and specifications provided by National Auto Fleet Group for the two (2) proposed vehicles is provided in Attachment 2.
On January 16, 2018, the City Council adopted Resolution No. 2018-06, approving a Mobile Source Air Pollution Reduction Review Committee (MSRC) Grant Application to, in part, purchase in-road light-duty zero-emission vehicles. The procurement of the two (2) proposed zero-emission vehicles would fulfill and complete the associated requirements of the above mentioned MSRC Grant fund.
LEGAL REVIEW:
The City Attorney has reviewed and approved the Resolution as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 4.8.a Resolution No. 2022-50 (Sourcewell)
2. 4.8.b Quotation and Specifications of Proposed Vehicles