June 27, 2023
Public Works
DATE: June 27, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, PE, Director of Public Works
Dee Karnes, Fleet Maintenance Superintendent
Subject:
Resolution Approving a Temporary Waiver of
Competitive Bidding on Fleet Items and Advanced
Authorization to Purchase Vehicles
FINANCIAL IMPACT: The funds are available in the Public Works Fleet Maintenance Capital Improvements Projects Fiscal Year
2022-2023 and 2023-2024 budget – 50336031-400705
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
The Department of Public Works is requesting City
Council to adopt a resolution to approve a temporary
waiver of competitive bidding on fleet vehicles and
advanced authorization to purchase fleet vehicles as they become available as approved through the budget
adoption process.
RECOMMENDED ACTION:
ADOPT a resolution approving a temporary waiver of
competitive bidding on fleet vehicles and advanced
authorization to purchase fleet vehicles – Public Works (Daniel Chavarria 510-620-5478/Dee Karnes 510-231-
3044).
DISCUSSION:
Ordinarily, the City of Richmond orders vehicles through a public bid process or from a government purchasing cooperative and receives them within the same fiscal year.
AGENDA
REPORT
June 27, 2023
However, the vehicle purchasing environment has become increasingly difficult in the past two years. The COVID-19 pandemic, global supply chain issues, declining vehicle inventories, and very long delivery schedules for vehicles have made it very difficult for the City to replace vehicles with any certainty of pricing or delivery date. Based on the current delivery schedules, it is not likely that replacement vehicles will be available in time if they are procured through a public bid or from a government purchasing cooperative, where we have little to no control over the production and delivery schedule. For example, in March of this year, fleet services attempted to purchase five Ford® Rangers that were canceled by another public agency. These vehicles were on a first-come, first-served basis to whatever agency could provide a purchase order first.
Fleet Services Division of Public Works attempted to place the item on the March 7, 2023, City Council meeting agenda; however, due to delays, the item was moved to the March 21, 2023, meeting. In that two-week period, the vehicles were sold to another public agency. These types of supply chain issues and delivery delays are expected to last through the 2024-2025 budget cycle.
In order to avoid such delays, Public Works staff is requesting the advance authorization to purchase replacement vehicles and equipment through local Richmond dealerships or government cooperatives that have suitable vehicles in stock, including the ability to place a down payment on vehicles that are in production and/or in transit.
In the current market for new vehicles, the length of time it takes to go through the standard public bid process would preclude the purchasing of these vehicles. Other agencies that have passed similar resolutions regarding fleet equipment solicitation waivers include Sunnyvale, Fairfield, Paso Robles, and Longview, Washington.
Therefore, Public Works staff is requesting the authority to purchase vehicles as they become available, waiving competitive bidding requirements and without further City Council approval of each individual purchase through fiscal years 2022-23 and 2023-24.
In addition, City staff is requesting authorization for the City Manager or Deputy City Manager to approve said purchases of fleet vehicles. City staff will utilize best practices to verify that the vehicles purchased are priced commensurate with similar vehicles from other manufacturers and dealerships in our region. City staff will report back to the City Council after the fact on a quarterly basis with the number and types of vehicles procured to keep the City Council fully informed of all fleet purchases.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution XX-23