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
City Attorney’s Office;
City Manager’s Budget
Office; Department of
Public Works
DEPT. APPROVAl
/s/
Maria Öberg
COUNCIL DISTRICT(S)
Citywide
CMO Approval
2/20/2025
SUBJECT: Actions Related to the Purchase Order with Bakhtiari Corporation for Subaru Solterra Electric Vehicles
RECOMMENDATION
Adopt a resolution authorizing the City Manager or her designee to exercise up to six one-year options to extend the term of the purchase order with Bakhtiari Corporation (San José, CA) for Subaru Solterra electric vehicles with the last option ending on or about November 15, 2030, subject to the appropriation of funds.
BASIS FOR RECOMMENDATION
The Fleet Management Division, Department of Public Works (Fleet), manages the City’s vehicle fleet on behalf of various departments. Fleet analyzes, identifies, and recommends the replacement of existing vehicles when vehicles have reached the end of their usable life. Fleet makes vehicle replacement determinations by accounting for multiple factors including lifecycle, maintenance costs, and periods of downtime. New electric vehicles will replace existing vehicles that are at the end of their usable life. These new electric vehicles will help minimize operational impacts and will provide departments with modern, advanced, and zero emission vehicles that are essential for providing City services.
In August 2023, a competitive Request for Bids was released by the Finance Department to procure these products. The Request for Bids provisioned for a one-year initial term and an additional six one-year options for the City to extend the term. One responsive bid was submitted, and no protests were received. The sole bidder did not apply for the City’s local or small business preference. Staff awarded to Bakhtiari Corporation as the sole, responsive, responsible bidder pursuant to the bidding procedures of the San José Municipal Code, Section 4.12.310.B(1) under City Manager authority.
The option period for November 16, 2025 to November 15, 2026 is projected to be in the amount of $2,000,000 and future options will be subject to appropriation.
Approval of this recommendation ensures the City continues to receive these essential products with minimal impact to operations.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input associated with this action.
COST AND FUNDING SOURCE
The recommended action relating to this purchase order of $2,000,000 will be managed by Public Works on behalf of various City departments. Funding sources for purchases will vary and are subject to the appropriation of funds.
FOR QUESTIONS CONTACT: Albie Udom, Deputy Director of Finance - Purchasing and Risk Management, at [email protected].
COUNCIL AGENDA: 3/11/25
FILE: 25-208
ITEM: 2.9