President Lara adjourned the Water Authority meeting at 8:18 p.m. in remembrance of all the children who have lost their lives or have been impacted by cancer. There being no objection, it was so ordered.
AYES: Camacho, Garcia, Lutz, Sanchez, Lara
NOES: None
________________________________
Andrew C. Lara, President
ATTEST:
________________________________
Cynthia Ayala, CMC, Authority Secretary
I hereby certify that the foregoing is a true and correct report of the proceedings of the Water Authority regular meeting dated September 24, 2024, and approved by the Water Authority on October 8, 2024.
_______________________________
Cynthia Ayala, CMC, Authority Secretary
To: President and Commissioners
From: Executive Director
Meeting Date: October 8, 2024
Subject: VEHICLE REPLACEMENT – PURCHASE OF TWO
VEHICLES FOR THE PICO RIVERA WATER AUTHORITY
Recommendation:
1. Ratify the purchase of two (2) vehicles in the aggregate amount of $111,534;
2. Authorize the Executive Director to execute all documents related to the purchase of the two (2) vehicles; and
3. Authorize the Executive Director, or his designee, to execute all agreements necessary to facilitate the sale or disposal of the two (2) aged vehicles.
Fiscal Impact:
There is adequate funding in the Pico Rivera Water Authority (PRWA) fund, within Account No. 550.40.4920-57310, for the vehicle purchase of $111,534. No additional appropriations are required at this time. Any proceeds from the insurance provider related to the vehicle accident involving Vehicle Unit No. 287 will be reimbursed into Account No. 550.40.4920-57310.
Discussion:
Vehicle Unit No. 287 was involved in a traffic collision and was deemed a total loss.
Vehicle Unit No. 292 is over 15 years old and requires extensive and frequent mechanical repairs that exceed its value. The vehicles are essential for the daily operations of the Pico Rivera Water Authority. They are used for troubleshooting water distribution issues and responding to customer service calls.
The following table shows the vehicle unit number, year, make, and model of the vehicle to be replaced, current vehicle mileage, proposed vehicle replacement, and quoted price. 10 PICO RIVERA WATER AUTHORITY AGENDA REPORT – MEETING OF OCTOBER 8, 2024
VEHICLE REPLACEMENT- PURCHASE OF TWO VEHICLES FOR THE PICO RIVERA
WATER AUTHORITY
Vehicle
Unit
No.
Yr./ Make /Model Mileage Replacement
Model
Replacement
Quote
287 2017 Ford F150 37,120 2024 Ford F250 $67,625
292 2008 Chevrolet
1500 Silverado 76,660 2024 Ford F150 $43,909
TOTAL: $111,534
Per the Pico Rivera Municipal Code (PRMC) 3.20.030(B) and 3.20.080(B), the City of Pico Rivera (City) can procure through Sole Source when only one (1) vendor can obtain a commodity or equipment. Central Ford Automotive Inc. is the only local dealership with the available inventory to deliver one (1) 2024 Ford F250 and one (1) 2024 Ford F150 truck within the desired specifications and delivery date. Staff requested additional quotes from two (2) other local dealerships to assess the region's current inventory and ensure that the City gets the best value. The quotes from other dealerships were similar, but Central Ford Automotive Inc. was the only dealership with the inventory to deliver the vehicles within the time period requested and with the shortest lead time in securing the vehicles.
In recent months, cities have faced challenges acquiring necessary vehicles and equipment due to supply chain issues, inflation, and competition in the commercial vehicle market. The Public Works Director and City Manager deemed the acquisition of these vehicles necessary. To secure these essential vehicles, staff proceeded to purchase both vehicles. Per PRMC 3.20.025, the City shall report the vehicle purchase(s) exceeding the City Manager’s approval threshold at the following City Council meeting for ratification.
These recommended vehicle purchases will ensure that the Public Works staff is properly equipped with reliable and safe vehicles to continue providing efficient and effective services for the community.
It is recommended that the aged vehicles being replaced be disposed of by auction to recover any residual value. Pursuant to the Pico Rivera Municipal Code Section
3.20.200, any asset sales less than $60,000 requires that the assets be sold through a sealed bid process to the highest bidder as described in the Pico Rivera Municipal Code Section 3.20.10. However, a sealed bid process to sell each surplus vehicle would be inefficient and impractical in comparison to an open bid/auction process. The auction process would capture the intent of the applicable Pico Rivera Municipal Code sections as it ensures that the City is obtaining the best possible price for the vehicles and may result in a higher resale value if the bidders are allowed to increase their initial bids. Therefore, in the interest of efficiency and maximizing resale value, it is recommended that the City Council allow the Executive Director to proceed with the sale of the surplus vehicles at auction.
PICO RIVERA WATER AUTHORITY AGENDA REPORT – MEETING OF OCTOBER 8, 2024
VEHICLE REPLACEMENT- PURCHASE OF TWO VEHICLES FOR THE PICO RIVERA
WATER AUTHORITY
Conclusion:
Staff recommend authorizing the Executive Director to ratify the purchase of two (2) vehicles for the amount not-to-exceed $111,534 and authorize the Executive Director, or his designee, to execute all related documents for the purchases of the two (2) vehicles.
Steve Carmona
SC:NN:ML:np
COUNCIL
MEETING
DATE
COUNCIL MEMBER REQUEST DETAIL DIRECTOR(S)
ACTION TAKEN: Memo; Staff
Report; Closed Session;
Presentation; Follow-up
Meeting; City Manager Reports;
Informal Action
DISCUSSION
ITEM
ACTION
ITEM DATE
STATUS:
Complete;
Pending;
On-going;
In-Progress
2/14/2023 Garcia/Sanchez Establishing Safe Spaces for kids Take to City Council P. Yugar 2nd meeting of September 2/14/2023 8/8/2023 In-Progress 11/14/2023 Lara/Lutz MHKO Ordinance Take to City Council A. Betancourt TBD In-Progress 3/12/2024 Lutz/Garcia Create funding for 1st time Home Buyers (Veterans/1st Responders ) A. Betancourt
TBD Pending
6/11/2024 Lara/Camacho Creation of Marketing Commercials for SSF P. Yugar Pending 9/10/2024 Lutz/Lara Create Good Citizen Award Program
GOOD OF THE ORDER