City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00848 7/25/2023 Consent Item 22.
Contract: Light Duty Vehicle Purchases [Published for 10-Day Review on 7/14/2023] File ID: 2023-00848
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or City Manager’s designee to execute Supplement No. 1 to Contract No. 2023-0127 with Elk Grove Ford for the purchase of new and replacement Ford light-duty vehicles in an amount not to exceed $2 million for a revised total contract not-to-exceed amount of $2.9 million.
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 - Supplement Contract No.1
Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division (Fleet Management), has a customer requirement to purchase light duty vehicles to fulfill scheduled vehicle replacements.
Fleet Management has standardized the use of Ford light-duty products to ease repair and equipment needs. The vehicles purchased will replace existing light duty vehicles which have reached the end of their useful life due to high mileage or high maintenance costs.
Policy Considerations: The recommendations in this report are in accordance with Sacramento City Code Chapter 3.56 and Sacramento City Council Rules of Procedure, Chapter 7, Section E.2.d, which requires additional posting time for labor agreements and agreements greater than $1 million.
This item shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on July 14, 2023, in compliance with the City Code.
Economic Impacts: None.
File ID: 2023-00848 7/25/2023 Consent Item 22.
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: Fleet Management has completed extensive research to determine options for purchasing replacement light duty vehicles. Due to the issues surrounding the limited order banks, microchip production and supply chain issues, the availability of vehicles has decreased significantly over the last three years. Current vehicle orders are taking a longer time to fill and experiencing delays with delivery. In-stock vehicles are available in a timely manner.
A multi-year contract was awarded to Elk Grove Ford to ensure purchase availability until the issues surrounding vehicle manufacturing decline. The contract meets the division’s objective to continue to standardize the fleet with Ford products. This allows for a limited number of parts to purchase for repairs as well as familiarity of repairs for the equipment mechanics and equipment service workers.
Financial Considerations: The potential purchases, in an amount not to exceed $2 million, for a revised total contract amount of $2.9 million, will be made from the Department of Public Works Fiscal Year (FY) 2023/24 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 FY2023/24 operating budget and the MYOP projects.
Local Business Enterprise (LBE): Elk Grove Ford is not an LBE. 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.