PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.E
SUBJECT/TITLE:
RATIFICATION OF THE PURCHASE OF TWO NEW POOL VEHICLES IN FISCAL YEAR 2024
RECOMMENDATION:
Adopt a Resolution ratifying the purchase of two Toyota RAV4 Hybrid LE vehicles at a combined price of $73,505.43 inclusive of tax, title, and licensing fees, in Fiscal Year 2024.
BACKGROUND:
Staff has been trying to purchase two new pool vehicles, each with an approximate value of $37,000, for more than six months. These vehicles will be used for:
1. City Manager’s office, Management Services, and Administrative Services shared pool vehicle;
2. IT pool vehicle.
Typically, when the City purchases multiple vehicles, the vehicles are procured through a competitive bid process, due to the combined value of the purchase and the requirements of the City’s Purchasing Policy. On September 14, 2023 bids were issued for both Toyota RAV4 Hybrid and Honda CR-V Hybrid vehicles. Due to supply chain issues, the auto workers strike and other factors, new vehicles are in short supply and no dealers or manufacturers responded to the issued bids for the vehicles. Under the City’s Purchasing Policy, formal bidding may be dispensed with when there are extenuating circumstances that would make formal bidding not the most cost-effective approach. The City’s Purchasing Policy and Procedures require obtaining three quotes for purchases over $15,000. Staff found on multiple occasions that by the time a third quote was received, the first and sometimes second-lowest priced vehicles were already sold.
Rather than rebidding or seeking additional quotes, and based on the Purchasing Policy, staff moved to purchase the vehicles one at a time directly from local dealers.
In response to these challenges and under the City Manager’s purchasing authority, staff was able to successfully purchase two Toyota RAV4 Hybrid LE vehicles, one for $36,722.00 on October 12, 2023 and another for $36,783.43 on November 1, 2023 from Toyota of Lompoc to meet the operational demands of the departments (cost exhibits provided as Attachments 1.A and 1.B). These purchases represented the best value to the City. As the City’s Purchasing Policy and Procedures require Council approval for purchases over $50,000 from the same vendor, staff recommends Council ratify the purchase of the two subject vehicles.
Conclusion and Recommendation
Staff recommends that the City Council adopt a Resolution (Attachment 1) ratifying the purchase of two Toyota RAV4 Hybrid LE vehicles at a combined price of $73,505.43 inclusive of tax, title, and licensing fees, in FY 2024.
9.E-1Council Agenda 12-5-2023
FISCAL IMPACT:
The fiscal impact of purchasing the two pool vehicles is $75,505.43 broken down as follows:
FY 2024 Motor Vehicle Replacement Fund Budget $83,000.00 2023 Toyota RAV4 Hybrid LE $33,344.00
License Fees $486.75
Doc Fee $85.00
Shipping & Handling $200.00
Tax $2,606.25
Total Price $36,722.00
2024 Toyota RAV4 Hybrid LE $33,814.00
License Fees $41.75
Doc Fee $85.00
Shipping & Handling $200.00
Tax $2,642.68
Total Price $36,783.43
Remaining Fund Balance $9,494.57
ALTERNATIVES:
1. Do not authorize staff to purchase two new pool vehicles and provide staff with direction on how to proceed.
ATTACHMENTS:
1. Resolution
1.A Exhibit A to Resolution: 2023 Toyota RAV4 invoice
1.B Exhibit B to Resolution: 2024 Toyota RAV4 invoice
Submitted by: Meeting Date: December 5, 2023
Benjamin A. Fine, P.E.
Director of Public Works/City Engineer
City Manager Approval:
9.E-2Council Agenda 12-5-2023
RESOLUTION NO. R-2023-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA RATIFYING THE PURCHASE OF TWO TOYOTA RAV4 HYBRID LE VEHICLES AT A COMBINED PRICE OF $73,505.43 INCLUSIVE OF TAX, TITLE, AND LICENSING FEES IN FISCAL YEAR 2024
WHEREAS, staff has been trying to purchase two new pool vehicles to be used for IT and the City Manager’s office, Management Services and Administrative Services; and WHEREAS, due to supply chain issues, the auto workers strike and other factors, new vehicles are in short supply and no dealers or manufacturers responded to the issued competitive bid for the vehicles; and
WHEREAS, based on the City’s purchasing policy, staff moved to purchase the vehicles one at a time directly from local dealers; and
WHEREAS, the City’s purchasing policy requires that for purchases over $15,000 three quotes are obtained; and
WHEREAS, staff was able to separately purchase two Toyota RAV4 Hybrid LE vehicles for $36,722.00 and $36,783.43 respectively from Toyota of Lompoc, each under the City Manager’s purchasing authority.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby ratifies the separate purchases of two Toyota RAV4 Hybrid LE vehicles at a combined price of $73,505.43 inclusive of tax, title and licensing fees, in Fiscal Year 2024 (cost exhibits provided as Exhibit A and Exhibit B).
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 5th day of December 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Attachment 1
9.E-3Council Agenda 12-5-2023
Attachment 1.A
9.E-4Council Agenda 12-5-2023
Attachment 1.A
9.E-5Council Agenda 12-5-2023
Attachment 1.B
9.E-6Council Agenda 12-5-2023
Attachment 1.B
9.E-7Council Agenda 12-5-2023