TO:
VIA:
CITY COUNCIL
CITY ADMINISTRATOR
Placentia City Council
AGENDA REPORT
FROM: DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES AND
INFRASTRUCTURE
DATE: MAY 17, 2022
SUBJECT: PURCHASE OF NEW FLEET VEHICLES FOR THE POLICE, COMMUNITY
SERVICES AND PUBLIC WORKS DEPARTMENTS AND TEMPORARY
INCREASE TO CITY ADMINISTRATOR APPROVAL LIMIT FOR FLEET
PURCHASES
FISCAL
IMPACT: EXPENSE: $ 135,810.42 Purchase of Three (3) Ford Trucks BUDGETED: $ 79,214.00 FY 2021-22 Placentia Navigation Center Fund (784070-6840)
$ 94.000.00
$ 43,000.00
$ 44,000.00
SUMMARY:
FY 2021-22 CIP Budget
(798201-6842 Public Works Arrowboard Truck)
(108204-6842 & 798204-6842 Community
Services Stakebed Truck)
The City Council budgeted funds in the previous and current fiscal year to replace an existing stake bed truck in the Community Services Department, a service truck in Public Works as well as purchase a new truck for our Homeless Liaison Officers (HLO). The City Council previously approved the purchase of the HLO truck which was ordered on June 2, 2021, and due to extensive delays and production issues at the Ford plant the truck have yet to be put into production.
Currently, there is an estimated production start time of July 2022. Given the pressing nature of the use of the HLO vehicle and the extensive delays encountered thus far, Staff began to seek out alternative sources to procure this vehicle and found one on the lot at Villa Ford. Given the scarcity of new vehicles at this time the City issued Villa Ford a purchase order for the vehicle in advance of seeking Council's approval. The City took delivery of the vehicle on May 4th and the May 17th Council meeting is the first available meeting to obtain Council approval for the purchase.
The same approach was taken to purchase the new truck for the Community Services Department. Staff has been searching at various dealerships since July 2021 for an available truck since they were advised that new factory fleet orders were delayed until September/October 2022. Staff were able to find an available truck that meets their needs on the lot at Villa Ford as this particular truck was ordered by another party who subsequently canceled the order. Staff recently took delivery of the vehicle and now presents the purchase order request to the City Council for its consideration. A second truck that was canceled as part of that order was also newly available for purchase by the Public Works Department. The City Council had previously
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May 17, 2022
City Council Agenda
May 17, 2022
approved a purchase order with Fairway Ford for a new F-150 Arrowboard Truck, but the vehicle has yet to enter production. Staff proposes to cancel that particular purchase order with Fairway Ford and purchase the vehicle through Villa Ford instead. The City Administrator authorized the purchases under his COVID-related emergency purchasing power given the continuing difficulties faced by the City in replacing critical fleets units in a timely fashion which is having significant impacts on the City's ability to deliver critical services to the community.
Given the continuing supply chain issues and shortage of vehicles Nationwide the City needs additional flexibility to exercise these purchases since available vehicles are now often purchased sight unseen and acquired by various businesses and in some cases, other cities. Staff is recommending that the City Council increase the City Administrator's purchasing limit for vehicle purchases over $40,000 for a period of one year to provide added flexibility for Staff to be able to secure vehicles in a more expeditious manner. The purchasing limit increase would be limited to vehicle purchases only and the City would continue to utilize the City's recently updated purchasing policy requirements for vehicle acquisitions.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Authorize the purchase of three (3) 2022 Ford pick-up trucks from Villa Ford in the amount of $135,810.42; and
2. Authorize the installation of all necessary emergency response equipment to properly outfit the vehicles in an amount not -to -exceed $25,000; and
3. Authorize the City Administrator to approve invoice changes up to 10% of each of the equipment and quoted amounts; and
4. Authorize the City Administrator and/or his designee to execute all necessary documents effectuate the purchase of the vehicle and installation of necessary emergency response equipment; and
5. Authorize the City Administrator to temporarily acquire fleet vehicle purchases in excess of $40,000 without City Council approval for a period of one (1) year and in conformance with the City's Purchasing Policy.
DISCUSSION:
The City Council budgeted funds in the prior and current fiscal year to replace an existing stake bed truck in the Community Services Department, a service truck in Public Works as well as purchase a new truck for our Homeless Liaison Officers (HLO). The City Council previously approved the purchase of the HLO truck which was ordered on June 2, 2021, and due to extensive delays and production issues at the Ford plant the truck have yet to be put into production.
Currently, there is an estimated production start time of July 2022; however this is the third production date extension provided by Ford. Given the pressing nature of the use of the HLO vehicle and the extensive delays encountered thus far Staff began to seek out alternative sources
City Council Agenda
May 17, 2022
to procure this vehicle and found a qualifying truck in stock at Villa Ford. Given the scarcity of new vehicles at this time the City issued Villa Ford a purchase order for the vehicle in advance of seeking Council's approval. The City took delivery of the vehicle on May 4th and the May 17th Council meeting is the first available meeting to obtain Council approval for the purchase.
The same approach was taken to purchase the new truck for the Community Services Department. Staff has been searching at various dealerships since July 2021 for an available truck since they were advised that new factory fleet orders were delayed until September/October 2022. Staff were able to find an available truck that meets their needs on the lot at Villa Ford as this particular truck was ordered by another party whom subsequently canceled the order. Staff recently took delivery of the vehicle and now presents the purchase order request to the City Council for its consideration. A second truck that was canceled as part of that order was also newly available for purchase by the Public Works Department. The City Council had previously approved a purchase order with Fairway Ford for a new F250 pick-up, but the vehicle has also yet to enter production. Staff proposes to cancel that particular purchase order with Fairway Ford and purchase the vehicle through Villa Ford instead. The City Administrator authorized the purchases under his COVID-related emergency purchasing power given the continuing difficulties faced by the City in replacing critical fleets units in a timely fashion which is having significant impacts on the City's ability to deliver critical services to the community.
Given the continuing supply chain issues and shortage of vehicles nationwide Staff needs additional flexibility to exercise these purchases since available vehicles are now often purchased sight unseen. Staff is therefore recommending that the City Council increase the City Administrator's purchasing limit for vehicle purchases over $40,000 for a period of one year only and in conformance with the City's Purchasing Policy. This temporary authorization will provide Staff added flexibility for vehicle acquisitions in a timely manner while not violating the City Administrator's purchasing authority. The purchasing limit increase would be limited to vehicle purchases only.
FISCAL IMPACT:
The funds to purchase these three (3) vehicles have been budgeted in the Fiscal Year (FY) 2021- 22 Operating Budget and Capital Improvement Program (CIP) Budget. The FY 2021-22 Operating Budget includes funding from the Navigation Center budget for the purpose of purchasing and outfitting the HLO truck. A total of $50,000 in Measure U Funds was budgeted in the FY 2021-22 CIP Budget for the purchase of one (1) F-250 Mechanic Utility Truck for the Public Works Department and $44,000 in General Fund and Measure funds for the purchase of one (1) F-250 Utility Truck for the Community Services Department. The total cost to purchase the three (3) trucks, based upon the quotes provided by Villa Ford, is $135,810.42. As such, sufficient funds exist for the recommended actions.
City Council Agenda
May 17, 2022
Prepared by:
E sa obinson
Management Analyst
Reviewed and approved:
(Ais f s t i)
Luis Estevez
Deputy City Administrator
Attachments:
Quotes from Villa Ford
Reviewed and Approved:
Jonnif r Lampman
Director of Finance
Reviewed and approved:
Damien R. Arrula
City Administrator