City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00519 5/23/2023 Consent Item 10.
Contracts: Replacement Light and Heavy-Duty Vehicle Purchases (Two-thirds vote required) [Published for 10-Day Review 05/11/2023]
File ID: 2023-00519
Location: Citywide
Recommendation: Pass a Motion: 1) suspending competitive bidding in the best interest of the city for the purchase of replacement light and heavy-duty vehicles; 2) awarding an initial one-year contract with four one-year renewal options to Elk Grove Ford in an amount not to exceed $900,000 for the potential five-year term; 3) awarding an initial one-year contract with four one-year renewal options to Boyer Trucks in an amount not to exceed $2,750,000 for the potential five-year term; 4) authorizing the City Manager or the City Manager’s designee to execute the purchase specified above.
Contact: Bobbie Small, Program Specialist, (916) 808-6711, [email protected]; Alison Kerstetter, Fleet Manager, (916) 808-1163, [email protected]; Department of Public Works
Presenter: None
Attachments:
1 - Description/Analysis
2 - Contract - Boyer Trucks
3 - Contract - Elk Grove Ford
Additional Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division, has a customer requirement to purchase light and heavy-duty vehicles to fulfill scheduled replacements for the City of Sacramento Fleet. Due to ongoing issues with vehicle shortages and long delivery times, in order to be able to have vehicles delivered more expeditiously, suspending competitive bidding is in the best interest of the City as in-stock vehicles are available in a timely manner. This will not result in higher costs to the City; in fact, the ability to get replacement vehicles in a more timely manner will reduce repair and maintenance costs and rental costs associated with keeping vehicles beyond their useful
File ID: 2023-00519 5/23/2023 Consent Item 10.
lives. The cars, trucks and SUV’s purchased will be used for various departments throughout the city.
The dump trucks will be used for removing debris from maintenance projects around the city.
Policy Considerations: City Code 3.56.230.C provides that competitive bidding shall not apply to bids for supplies or nonprofessional services of $250,000 or more when, upon two-thirds vote, the City Council determines that it is in the best interest of the City to suspend competitive bidding.
The recommendations in this report are in accordance with Sacramento City Code Section 4.04.020 and Council Rules of Procedure, Chapter 7, Section e.2.d, which mandate unless waived by a two- thirds vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to City Council action. This item was published for 10-day review on May 11, 2023, in compliance with the City Code.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the purchase of vehicles and are not considered to be a project in accordance with Section 15378(b)(2) of the CEQA guidelines.
Sustainability: The recommended purchases are consistent with the Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478).
Commission/Committee Action: None
Rationale for Recommendation: The Department of Public Works, Fleet Management Division, has standardized the light-duty fleet on Ford products and heavy-duty vehicles on Freightliner products.
Fleet Management has completed extensive research to determine options for purchasing replacement light and heavy-duty vehicles. Due to the issues surrounding the limited order banks, microchip production and pandemic concerns, the availability of vehicles has decreased significantly over the last three years. Suspending competitive bidding is in the best interest of the City as in-stock vehicles are available in a timely manner. Current vehicle orders are taking a longer time to fill and experiencing delays with delivery.
Fleet Management recommends awarding multi-year contracts to Elk Grove Ford and Boyer Truck to ensure purchase availability until the issues surrounding vehicle manufacturing decline. Both contracts will meet the division objectives to continue to standardize the fleet with Ford and Freightliner products. This allows for a limited amount of parts to purchase for repairs as well as familiarity of repairs for the equipment mechanics and equipment service workers.
File ID: 2023-00519 5/23/2023 Consent Item 10.
Financial Considerations: The potential purchases on each contract, in an amount not to exceed $3,650,000, will be made from the Department of Public Works Fiscal Year (FY) 2022/23 operating budget (Fleet Fund, Fund 6501) and charged to the appropriate multi-year operating projects (MYOPs) when procured. Sufficient funding currently exists in the Department’s FY2022/23 operating budget and the MYOP projects.
Local Business Enterprise (LBE): Elk Grove Ford and Boyer Trucks are not LBEs. Goods contracts over $250,000 do not have a minimum LBE requirement.
Background Fleet Management staff surveyed local Ford Vendors for in-stock vehicles due to infrequency of vehicle order banks opening and delays in current vehicle orders. Vehicles from Elk Grove Ford are widely available and offer the highest discount. The current contract with Downtown Ford Sales could not be used as order banks are not open and in stock vehicles were not able to be used for fleet purchases. Folsom Lake Ford was able to provide a limited number of quotes for vehicles at a lesser discount. Future Ford was not able to provide quotes as vehicle inventory is limited.
Fleet Management staff contacted the frequently used cooperative contract vendor to order Freightliners for replacement vehicles in September 2022. They would not offer open order slots to the City until after December 2023. Each Freightliner dealer within the State of California was also contacted. They could not provide any open order slots during the 2023 calendar year. The City was able to get information from a current vendor suggesting to contact Boyer Truck for potential open order slots. Boyer Truck determined they would have 10 open order spots that they were able to hold for the City of Sacramento.