CITY COUNCIL ACTION REQUEST
Department(s):
Finance
CEQA:
Not a Project, File No.
PP17-003,
Agreements/Contracts (New
or Amended) resulting in no
physical changes to the
environment
Coordination:
PW, CAO, and CMO -
Budget Office
Dept. Approval:
/s/
Julia H. Cooper
Council District(s):
Citywide
CMO Approval:
9/13/22
SUBJECT: PURCHASE ORDERS WITH TOWNE MOTOR COMPANY DBA TOWNE FORD SALES
FOR NEW FORD TRUCKS
RECOMMENDATION:
Adopt a resolution authorizing the City Manager to:
(a) Amend purchase orders PO 82473, PO 82475, and PO 82491 with Towne Motor Company dba Towne Ford Sales (Redwood City, CA) for new Ford trucks with custom bodies to increase the amount of total compensation by $795,374 for a revised combined amount not-to-exceed $1,720,682 and to extend the terms from November 23, 2022 to November 23, 2023; and
(b) Approve a contingency of $258,000 for any unforeseen changes or modifications to vehicle orders, subject to the appropriation of funds; and
(c) Execute additional purchase orders for ongoing vehicle purchases through November 23, 2026, subject to the appropriation of funds.
Desired Outcome: Ensure the City has vocational trucks to provide a variety of essential services.
BASIS FOR RECOMMENDATION:
The Fleet Management Division of the Department of Public Works (Fleet) oversees the purchases of vocational trucks for various City departments. Due to ongoing supply chain issues, the City has experienced significant delays in vehicle and component purchases thereby affecting City Fleet availability. In November 2021, vehicle order banks were unexpectedly closed resulting in the cancellation of the City’s initial orders. Vehicle order banks are now open for current model year vocational trucks with a limited supply of inventory. Additional funds are needed due to vehicle cost and order quantity increases.
A competitive Request for Bid was facilitated by the Finance Department to procure these products. Two bids were submitted, and no protests were received. The lowest priced, responsive, and responsible bidder did not qualify for the local and small business preference. Staff awarded initial purchase orders totaling $925,308 for a one-year period beginning November 24, 2021 to Towne Ford Sales pursuant to the bidding procedures of the San José Municipal Code, section 4.12.310.B(1) under the City Manager’s authority. Approval of this recommendation will ensure the City has vocational trucks to provide a variety of essential services.
Climate Smart San José: The recommendation in this memorandum has no effect on Climate Smart San José energy, water, or mobility goals.
Commission Recommendation/Input: There is no commission recommendation or input associated with this action.
This City Council item is consistent with the City’s 2022-2023 Proposed Budget City Service Areas Delivery Framework: “To effectively develop, manage, and safeguard the City’s fiscal, physical, technological, and human resources to enable and enhance the delivery of City services and projects.”
COUNCIL AGENDA: 09/27/22
FILE: 22-1402
ITEM: 2.13
COST AND FUNDING SOURCE:
Fund #
Appn #
Appn Name
Total Appn
Amt. for
Recommendation
2022-2023 Proposed
Operating Budget Pg.
Last Budget Action
(Date, Ord. No)
465 5216 Prop 42 Street Pavement
Maintenance
$8,407,227 $471,050 744 06/21/2022
30790
541 0512 NP/Equip-Dept of
Transportation
$7,195,931 $162,162 744 06/21/2022
30790
446 0512 NP/Equip-Dept of
Transportation
$3,303,461 $162,162 744 06/21/2022
30790
FOR QUESTIONS CONTACT: Jennifer Cheng, Deputy Director of Finance at [email protected]