City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: OCTOBER 20, 2026 FROM: GENERAL SERVICES DEPARTMENT WARDS: ALL
SUBJECT: PURCHASE OF FOUR 2026 HONDA CIVIC SEDAN HYBRID SPORT CVT FROM 72 HOUR LLC, DBA NATIONAL AUTO FLEET GROUP, OF WATSONVILLE, CALIFORNIA THROUGH SOURCEWELL CONTRACT NO. 081325-NAF IN THE TOTAL AMOUNT OF $135,119.65 FOR THE FLEET SERVICES MOTOR POOL ISSUE:
Consider approving the purchase of four 2026 Honda Civic Sedan Hybrid Sport CVTs from 72 Hour LLC, DBA National Auto Fleet Group of Watsonville, California, through Sourcewell Contract No. 081325-NAF in the total amount of $135,119.65 for the Fleet Services Motor Pool.
RECOMMENDATIONS:
Approve the purchase of four 2026 Honda Civic Sedan Hybrid Sport CVTs from 72 Hour LLC, DBA National Auto Fleet Group of Watsonville, California, through Sourcewell Contract No. 081325-NAF in the total amount of $135,119.65 for the Fleet Services Motor Pool; and Authorize the City Manager, or designee, to execute all documents necessary to complete the purchase, including making minor and non-substantive changes.
BACKGROUND:
The General Services Department, Fleet Services Division (Fleet Services), manages the City’s Motor Pool, which provides vehicles to City departments for employee travel and other official City business. Motor Pool vehicles must remain safe, reliable, and available to support departmental operations.
Fleet Services regularly evaluates City vehicles for replacement based on age, mileage, maintenance and repair history, operating condition, reliability, and the cost of continued ownership. A passenger vehicle of this type typically has an anticipated fleet service life of approximately 10 years. Timely replacement of vehicles that have reached the end of their useful lives helps reduce unplanned repairs, vehicle downtime, and interruptions to City operations.
The four Honda Civics proposed for replacement consist of one model-year 2006 vehicle and three model-year 2007 vehicles. These vehicles have been in service for approximately 19 to 20 years, nearly twice their anticipated 10-year service lives. Replacing the vehicles will improve the safety, reliability, and availability of the City’s fleet while reducing the risk of increased maintenance costs and service interruptions.
The four vehicles being replaced are currently assigned to the Fleet Services Motor Pool and are available to City departments for employee travel and other official City business. Of the four replacement vehicles, one will be assigned to the City Attorney’s Office to support City Attorney for departmental business. The remaining three vehicles will be assigned to the Fleet Services Motor Pool and made available to City departments for official City-related business.
The following vehicles have been identified for replacement:
UNIT
YEAR
MAKE
MODEL
REPLACE WITH
B1493
2006
HONDA
CIVIC
2027 CIVIC SEDAN HYBRID SPORT CVT
B1543
2007
HONDA
CIVIC
2027 CIVIC SEDAN HYBRID SPORT CVT
B1544
2007
HONDA
CIVIC
2027 CIVIC SEDAN HYBRID SPORT CVT
B1545
2007
HONDA
CIVIC
2027 CIVIC SEDAN HYBRID SPORT CVT
DISCUSSION:
On September 1, 2026, Fleet Services requested a quote from 72 Hour LLC, DBA National Auto Fleet Group, for four 2026 Honda Civic Sedan Hybrid Sport CVTs. The vehicles will replace the four aging Honda Civics identified in the Background section and will be assigned to the Fleet Services Motor Pool.
Before proceeding with the recommended purchase, staff contacted the Sales Manager at Riverside Honda to provide the local dealership an opportunity to submit a quote. Riverside Honda advised that it was unable to provide a quote and declined the opportunity. Unlike manufacturers that allow government agencies to place direct factory orders, Honda distributes vehicles to its dealerships through an allocation process. Riverside Honda’s available vehicle allocation is maintained for retail sales and was not available to fulfill the City’s requested purchase.
Fleet Services selected hybrid vehicles instead of traditional internal combustion engine vehicles because they provide improved fuel economy, reduced fuel consumption, and lower emissions. Hybrid vehicles also maintain the driving range and refueling flexibility needed for Motor Pool operations while providing an opportunity to reduce long-term fuel and operating costs.
The proposed purchase will be made through Sourcewell Contract No. 081325-NAF, which expires November 13, 2029. Sourcewell competitively solicited and awarded the contract, allowing participating public agencies to purchase vehicles using established pricing and contract terms. 72 Hour LLC, DBA National Auto Fleet Group, provided a total price of $135,119.65 for the four vehicles. Fleet Services reviewed the quote and recommends approval based on the proposed vehicles meeting the City’s operational needs and the total pricing available through the Sourcewell contract.
Purchasing Overview
On June 25, 2025, Sourcewell, a State of Minnesota local government unit and service cooperative, issued Request for Proposals (RFP) No. 0891325 seeking prospective proposers to provide Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories for use by its Participating Entities.
RFP No. 0891325 closed on August 13, 2025, with a total of 61 responses. All responsive proposals were then submitted for review by the Sourcewell Evaluation Committee. On December 16, 2025, the Sourcewell Board of Directors approved the award to the top 10 ranked companies. 72 Hour LLC dba, National Auto Fleet Group ranked number 2 with a score of 874.
This action is pursuant to Purchasing Resolution 24421, Section 602 which states, “Competitive Procurement through the Informal Procurement and Formal Procurement process shall not be required in any of the following circumstances …(f) When Cooperative Purchasing is available and undertaken or when Goods can be obtained through Federal, State and/or other public entity pricing contracts or price agreements.” The Purchasing Manager concurs that the recommended action is compliant with Purchasing Resolution No. 24421.
FISCAL IMPACT:
The total fiscal impact of this action is $135,119.65. Sufficient funds are available in the Measure Z Fund, General Services-Fleet Services, Automotive Equipment Account No. 8005702-462100.
Prepared by: Christine A. Pulley, Sr. Administrative Analyst Approved by: Lee Withers, General Services Director
Certified as to
availability of funds: Julie Nemes, Finance Director
Approved by: Edward Enriquez, Assistant City Manager/Chief Financial Officer/City Treasurer
Approves as to form: Susan D. Wilson, Assistant City Attorney Attachments:
1. 72 Hour LLC, DBA, National Auto Fleet Group Quote
2. Sourcewell Contract 081325-NAF