CITY COUNCIL
Darrell Steinberg, Mayor
Lisa Kaplan, District 1
Shoun Thao, District 2
Karina Talamantes, Mayor Pro Tem, District 3
Katie Valenzuela, District 4
Caity Maple, Vice Mayor, District 5
Eric Guerra, District 6
Rick Jennings, II, District 7
Mai Vang, District 8
CHARTER OFFICERS
Mindy Cuppy, City Clerk
Susana Alcala Wood, City Attorney
Farishta Ahrary, Interim City Auditor
Howard Chan, City Manager
John Colville, City Treasurer
City Council
Financing Authority
Housing Authority
Public Financing Authority
Redevelopment Agency Successor Agency
City Hall Complex
915 I Street, Sacramento, CA 95814
Published by the Office of the City Clerk
(916) 80
8-7200
SUPPLEMENTAL MATERIAL
Description: Attached is supplemental material received after publishing the agenda, updating the recommendation and rationale for recommendation sections of the staff report.
For th
e Meeting of: Tuesday, June 25, 2024 at 5:00 p.m.
Agenda Item: Consent Item 20
20. Ford Original Equipment Manufacturer (OEM) Parts and Repairs [Published for 10- day Review on 06/14/2024]
F
ile ID: 2024-01185
Loc
ation: Citywide
R
ecommendation: Pass a Motion by two-thirds vote authorizing the City Manager, or the City Manager’s designee to 1) suspend competitive bidding in the best interests of the City; 12) awarding an initial one-year contract with four one-year renewal options to Future Ford of Sacramento in an amount not to exceed $1,200,000 for the potential five- year term; and 23) awarding an initial one year contract with four one year renewal options to Folsom Lake Ford in an amount not to exceed $1,200,000 for the potential five year term; and 34) authorizing the City Manager or the City Manager’s designee to execute the contracts specified above.
C
ontact: Bobbie Small, Program Specialist, (916) 808-6711, [email protected]; Alison Kerstetter, Fleet Manager, (916) 808-1163, [email protected]; Department of Public Works Cit
y of Sacramento Page 1
City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01185 6/25/2024 Consent Item 20.
Ford Original Equipment Manufacturer (OEM) Parts and Repairs [Published for 10-day Review on 06/14/2024]
File ID: 2024-01185
Location: Citywide
Recommendation: Pass a Motion by two-thirds vote authorizing the City Manager, or the City Manager’s designee to 1) suspend competitive bidding in the best interests of the City; 12) awarding an initial one-year contract with four one-year renewal options to Future Ford of Sacramento in an amount not to exceed $1,200,000 for the potential five-year term; and 23) awarding an initial one year contract with four one year renewal options to Folsom Lake Ford in an amount not to exceed $1,200,000 for the potential five year term; and 34) authorizing the City Manager or the City Manager’s designee to execute the contracts 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:
Attachments:
1-Description/Analysis
2-Contracts
Description/Analysis
Issue Detail: The Fleet Management Division, within the Department of Public Works, consistently requires Original Equipment Manufacturer (OEM) parts and repair services for the City’s fleet of vehicles. This division oversees a diverse range of vehicles, including emergency response units, solid waste vehicles, maintenance trucks, and administrative vehicles. Ensuring that each vehicle operates efficiently and safely is paramount to the City's operations.
To maintain the integrity and performance of these vehicles, the division sources all necessary OEM parts and repair services from an authorized Ford dealer. This procurement approach is essential to uphold the warranty agreements that come with these vehicles, which can cover critical components and repairs that would otherwise be costly to the City. By using authorized dealers, the City ensures that all replacements and repairs meet the manufacturer’s standards, thereby extending the lifespan
File ID: 2024-01185 6/25/2024 Consent Item 20.
of the fleet and reducing long-term maintenance costs.
Additionally, utilizing OEM parts guarantees compatibility and reliability, which is crucial for the performance and safety of the fleet. The Fleet Management Division's commitment to sourcing through authorized channels not only preserves warranty coverage but also aligns with best practices for fleet management, ensuring the City's vehicles are always in optimal working condition.
Policy Considerations: The recommendations in this report are in accordance with Sacramento City Code Chapter 3.56, which requires City Council approval of purchases of $250,000 or greater, 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 June 14, 2024, 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 vehicle parts and repairs and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
Sustainability: Not Applicable.
Commission/Committee Action: None.
Rationale for Recommendation: The Fleet Management Division released an RFP for Ford OEM parts and repairs on March 26, 2024. An RFP was utilized, rather than a competitive bid process, as it is in the City’s best interest to consider capacity, performance, and timeliness of service in addition to price. Multiple responses were received, and Fleet Management staff diligently evaluated and ranked each proposal. Given the number of Ford vehicles in the city fleet, the City needs more than one vendor to provide these services. Every OEM vendor that submitted a proposal is recommended for a contract.
Financial Considerations: Sufficient funding exists in the Department of Public Works, Fleet Management Division, Fiscal Year (FY) 2024/25 operating budget (Fleet Fund, Fund 6501) to purchase Ford OEM parts and repairs through June 30, 2025. Purchases made after June 30, 2025, are subject to funding availability in the adopted budget of the applicable fiscal year.
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: 2024-01185 6/25/2024 Consent Item 20.
Manager’s Office to advance to Council for approval. Funding for the proposed contract beyond FY2024/25 is subject to Council approval.
Local Business Enterprise (LBE): Future Ford of Sacramento is an LBE vendor. Folsom Lake Ford is not an LBE vendor. The minimum LBE participation requirement was waived by the Director of Public Works. Staff conducted an extensive search within the local area as well as reviewed bid history for similar services to determine potential interest in the bid.