DATE: APRIL 4, 2023
DEPARTMENT: PUBLIC WORKS, FLEET
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: TERRY MILLEMAN, FLEET MAINTENANCE MANAGER
TITLE: ADDITIONAL ALLOCATION OF FUNDING FOR THE DIRECT PURCHASE OF ONE FORD 350 TRANSIT FROM SALINAS VALLEY FORD RECOMMENDED MOTION:
It is recommended that City Council approve a Resolution authorizing an increase of up to $18,779.40 to CIP 9285 and transfer from the General Fund to the CIP Fund and use of General Fund fund balance in the same amount to cover the remaining cost of one Ford 350 Transit Van.
BACKGROUND:
On August 9, 2022 the City Council approved a price increase of up to twenty five percent to each of the vehicles included in previously approved resolutions (Resolution Nos. 22353, 22295, 22200, 22201, and 22311) and also authorized such purchases to be made from any suitable vendor, including the currently approved vendor based on price and availability.
Fleet received notice that the Ford Transit Van for Library and Community Services is now available. Due to product pricing increasing significantly, lack of supply, inflation and pandemic impacts the price of the Ford Transit Van has increased from $38,228.76 to $57,008.16, an amount which is beyond the previously approved twenty-five percent price increase.
Originally this Transit van was quoted as a 2021 model year. Because of the delay, this new price reflects a 2023 model year.
This vehicle is not readily available at any dealer. Staff reached out to other Ford dealerships and were told it’s a manufacturer delay that has these transit vans on hold for such a long time. There are more vans on order than the manufacturer can produce. This delay has caused more purchasing demand than there is availability for these vehicles. Because of this, Ford has eliminated the government state bid discount causing the price to increase. Staff reached out to other manufacturer dealerships with the same result.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
Infrastructure and Environmental Sustainability, Public Safety, Youth and Seniors DEPARTMENTAL COORDINATION:
Fleet coordinated with the Library and Community Services and Finance Purchasing Division regarding this purchase.
FISCAL AND SUSTAINABILITY IMPACT:
$38,228.76 have been appropriated and available in CIP 9285. CIP 9285 has an additional $7,963.64 that’s not assigned. The balance ($10,815.76) needed to cover the additional cost of the Ford Transit Van requires the use of General Fund fund balance.
ATTACHMENTS:
Resolution
Previously Approved Resolution 22200
New Quote for 2023 Transit 350 Passenger Van
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