City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
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File ID: 2024-00903 5/28/2024 Consent Item 11.
New and Replacement Light Duty Vehicle Purchases[Published for 10-Day Review 05/17/2024] File ID: 2024-00903
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or City Manager’s designee to execute Supplement No. 3 to Contract No. 2023-0564 with Elk Grove Ford for the purchase of new and replacement Ford light-duty vehicles increasing the amount of the contract by $2,000,000 for a revised total contract not-to-exceed amount of $4,900,000.
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. 3
Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division, consistently needs to procure light-duty vehicles to adhere to its vehicle replacement schedule. Fleet Management has streamlined its operations by standardizing the use of Ford light-duty products, facilitating easier repair and equipment compatibility. The new vehicles will replace existing light-duty vehicles that have surpassed their useful lifespan due to either high mileage or excessive 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 was published for 10-Day review on May 17, 2024, in compliance with City Code.
Due to the forecasted structural budget gap, the City Manager has directed City departments to minimize costs and for all new contracts to receive an additional level of scrutiny to ensure they are necessary for the operation of the City. This contract has been reviewed and approved by the City
File ID: 2024-00903 5/28/2024 Consent Item 11.
Manager’s Office to advance to Council for approval. Funding for the proposed contract beyond FY2023/24 is subject to Council approval.
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 California Environmental Quality Act 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 through research to explore alternatives for procuring replacement light-duty vehicles. However, due to challenges such as limited order banks and supply chain disruptions, vehicle availability has markedly declined over the last three years. Current vehicle orders are experiencing prolonged fulfillment times, leading to delays in delivery. While in-stock vehicles are immediately available. To mitigate the impact of manufacturing issues, a multi-year contract was awarded to Elk Grove Ford. This contract ensures consistent purchase availability until the challenges surrounding vehicle production subside.
Moreover, the contract aligns with the division’s objective of standardizing the fleet with Ford products, thereby promoting consistency an efficiency.
Financial Considerations: This supplemental contract for an amount of $2 million, provides a new contract not-to-exceed amount of $4.9 million. Potential purchases for this supplemental contract will be made by 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 and is anticipated for FY24/25. No purchases will be authorized unless an available budget exists.
Due to the forecasted structural budget gap, the City Manager has directed City departments to minimize costs and for all new contracts to receive an additional level of scrutiny to ensure they are necessary for the operation of the City. This contract has been reviewed and approved by the City Manager’s Office to advance to Council for approval. Funding for the proposed contract beyond FY2023/24 is subject to Council approval.
File ID: 2024-00903 5/28/2024 Consent Item 11.
Local Business Enterprise (LBE): Elk Grove Ford is not an LBE. Goods contracts over $250,000 do not have a minimum LBE requirement.
Background On May 16, 2023, the City entered contract 2023-0564 with Elk Grove Ford for purchase of Ford vehicles in an amount not to exceed $900,000 for a one-year contract period with four potential one-year extensions. Through Supplemental Contract No. 1, dated June 14, 2023, the not to exceed amount was increased by $2,000,000 for a new not to exceed amount of $2,900,000.
Supplemental Contract No. 2, dated March 20, 2024, extended the time of performance until May 15, 2025. The increased consideration in Supplemental Contract No. 3 is necessary to cover the cost of additional Ford vehicle purchases through the contract extension.
CONTRACT ROUTING SHEETContract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.General Information (Required)Original Contract # (supplements only): ________ Supplement/Addendum #: ___________________Assessor’s Parcel Number(s): ________________________________________________________________Contract Effective Date: _________ Contract Expiration Date (if applicable): _________$ Amount (Not to Exceed): ___________________ Adjusted $ Amount (+/-): _____________________Other Party: ______________________________________________________________________________Project Title: _____________________________________________________________________________Project #: ____________________________________ Bid/RFQ/RFP #: ___________________________City Council Approval: if YES, Council File ID#: __________Contract Processing ContactsDepartment: ______________________________Contract Coordinator: _______________________Project Manager: _________________________________Department Review and Routing(Signature) (Date)(Signature) (Date)(Signature) (Date)(Signature) (Date)Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.)_______________________________________________________________________________________------------------FOR CLERK & IT DEPARTMENTS ONLY – DO NOT WRITE BELOW THIS LINE------------------
SUPPLEMENTAL CONTRACT
(Rev. 11-1-19)
Project Title and Job Number: Date: Purchase Order #: Supplemental Contract No.: The City of Sacramento ("City") and _______________________________________("Contractor"), as parties to that certain Non-Professional Services Agreement designated as Contract Number ______________, including any and all prior supplemental contracts modifying the contract (the contract and all supplemental contracts are hereafter collectively referred to as the "Contract"), hereby supplement and modify the Contract as follows: The specified in Exhibit A of the Contract is amended as follows:In consideration of the additional and/or revised services described in section 1, above, the maximum not-to-exceedamount that is specified in Exhibit B of the Contract for payment of Contractor's fees and expenses, isincreased/decreased by ___________, and the Contract’s maximum not-to-exceed amount is amended as follows:Agreement's original not-to-exceed amount: __________Net change by previous supplemental contracts: __________ Not-to-exceed amount prior to this supplemental contract: __________ Increase/decrease by this supplemental contract: __________ New not-to exceed amount including all supplemental contracts: __________ Contractor warrants and represents that the person or persons executing this supplemental contract on behalf ofContractor has or have been duly authorized by Contractor to sign this supplemental contract and bind Contractor to theterms hereof.Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, andContractor shall perform all of the services, duties, obligations, and conditions required under the Contract, assupplemented and modified by this supplemental contract.[SIGNATURES ON FOLLOWING PAGE]
SUPPLEMENTAL CONTRACT
(Rev. 11-1-19)
Approval Recommended By: Approved As To Form By: Project Manager City Attorney Approved By: Attest: ____________________________________ Contractor City Clerk Approved By: City of Sacramento