CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 15 Section Name: {{section.name}} Account Number: 82-4683 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: November 20, 2023
SUBJECT:
Dump Truck Purchases – Purchase Contracts
RECOMMENDATION:
Adopt a Resolution to approve an alternative purchasing procedure to approve two purchase contracts to Mission Valley Ford Truck Sales, Inc. for the purchase of two (2) new 2023 Ford F650 dump trucks in a total amount not to exceed $257,868.00; to approve one purchase contract to The Ford Store Morgan Hill, Inc. for the purchase of one (1) new 2023 Ford F650 dump truck in a total amount not to exceed $121,107.87; and to approve a purchase contract to Salinas Valley Ford Truck Sales, Inc. for the purchase of one (1) new 2024 Ford F650 dump truck in the total amount not to exceed of $116,083.76; establish a contingency reserve of $20,000.00 for each supplier; and authorize the Public Works Director to execute the purchase contracts in substantially the form presented and issue change orders within the contingency amounts, for a total not to exceed amount of $555,059.63.
BACKGROUND:
The Public Works Field Maintenance Division and Parks and Recreation Maintenance Division utilize specialty trucks to perform essential services. Replacement of these dump trucks is imperative to provide dependable and swift service to the community. The new 2023 and 2024 Ford F650 dump trucks will replace existing dump trucks (M31, M33, M40, and M41) that are 25 years old and at the end of their useful life based on years in service, mileage, condition, lack of replacement parts, and cost of maintenance.
The City utilizes a cooperative purchasing process to procure its service vehicles because it ensures a competitive price.
However, the City has attempted to purchase these replacement dump trucks and has encountered serious setbacks due to a lack of available inventory via the cooperative purchasing process, and manufacturer delays. National Auto Fleet Group, which is a selected vendor in a cooperative purchasing process, facilitated the process with Ford when ordering banks opened in November 2022 allowing the City to reserve four (4) new Ford F650 dump trucks, which Council approved for purchase on January 17, 2023. As of October 15, 2023, the manufacturer still has not started the build and production of the ordered Ford F650 dump trucks that are desperately needed by Public Works and Parks and Recreation field maintenance teams. The manufacturer does not have an estimated date for the production of these dump trucks.
In response, Public Works staff located new 2023 and 2024 F650 dump trucks at local commercial dealerships that will meet the exact needs of the operation and the responsibilities of field maintenance teams and will be available in time for wet weather preparations. These F650 dump trucks are completely built and available now. In addition, the quotes received for these Ford F650 dump trucks from Mission Valley Ford Truck Sales, Inc., The Ford Store Morgan Hill, Inc., and Salinas Valley Ford Truck Sales, Inc. are less than the original approved purchases from National Auto Fleet Group and as follows:
CITY OF SAN MATEO
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QUOTE SUPPLIER VEHICLE AMOUNT
Quote #1 Mission Valley Ford 2023 Ford F650 Dump
Truck $128,934.00
Quote #2 Mission Valley Ford 2023 Ford F650 Dump
Truck $128,934.00
Quote #3 The Ford Store Morgan Hill 2023 Ford F650 Dump Truck $121,107.87
Quote #4 Salinas Valley Ford 2024 Ford F650 Dump
Truck $116,083.76
Quote #5 National Auto Fleet Group 2023 Ford F650 Dump
Truck $132,620.57
Quote #6 National Auto Fleet Group 2023 Ford F650 Dump
Truck $138,294.22
Based on the above, staff recommends the purchase of the two (2) new 2023 Ford F650 dump trucks from Mission Valley Ford Truck Sales, Inc. in the total amount of $257,868.00, one (1) new 2023 Ford F650 dump truck from The Ford Store Morgan Hill, Inc. in the total amount of $121,107.87, and one (1) new 2024 Ford F650 dump truck from Salinas Valley Ford Truck Sales, Inc. for the total amount of $116,083.76. As part of the Green Fleet Initiative, staff continually researches green fleet options through the procurement process to replace vehicles with alternative fueled vehicles when available.
The Ford F650 dump trucks are on a twelve-year replacement schedule and none of the major manufacturers of these heavy-duty trucks have an electric option available.
San Mateo Municipal Code Section 3.60.070(h)(3) authorizes the City Council to approve an alternative purchasing procedure when it finds doing so is in the best interest of the City. In this case, staff recommends the purchase of these two (2) 2023 Ford F650 dump trucks from Mission Valley Ford Truck Sales, Inc., one (1) 2023 Ford F650 dump truck from The Ford Store Morgan Hill, Inc., and one (1) 2024 Ford F650 dump truck from Salinas Valley Ford Truck Sales, Inc. as the new dump trucks are needed for the upcoming wet weather season and the quotes from Mission Valley and Salinas Valley are lower than those received through the cooperative purchasing process with National Auto Fleet Group.
BUDGET IMPACT:
Sufficient funding for the four (4) replacement trucks, M31, M33, M40, and M41 is available in the Vehicle and Equipment Replacement Fund.
ENVIRONMENTAL DETERMINATION:
This purchase is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Purchase Contract (Mission Valley Ford – M31)
Att 3 – Purchase Contract (Mission Valley Ford – M33)
Att 4 – Purchase Contract (The Ford Store Morgan Hill – M40) Att 5 – Purchase Contract (Salinas Valley Ford – M41)
STAFF CONTACT
CITY OF SAN MATEO
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Marie Silva, Facilities and Fleet Services Manager
[email protected]
6505227328
Brad Underwood, Director of Public Works
[email protected]
(650) 522-7303