City Council
Report
City Council Meeting: April 25, 2023
Agenda Item: 5.B
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Fleet Services Subject: Authorization of Purchase Orders with National Auto Fleet Group and Los Angeles Truck Centers for Vehicle Replacement Purchases for Various Divisions
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15302 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA) guidelines.
2. Authorize the Procurement Manager to issue a purchase order with National Auto Fleet Group for the purchase of forty-one Ford sedans, sports utility vehicles, vans, and trucks for the Police, Fire, Public Works, and Library Departments. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (c) and is for a total amount not to exceed $3,181,078.
3. Authorize the Procurement Manager to issue a purchase order with Los Angeles Truck Centers for the purchase of twelve side loader trucks, one rear loader and three front loader trucks for the Public Works Department. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (c) and is for a total amount not to exceed $7,837,992.
Summary
Various City of Santa Monica departments and divisions provide essential services that maintain clean and safe neighborhoods and open spaces for Santa Monica’s residents, visitors, and City staff. These operations rely on vehicles and equipment managed and maintained by the City’s Fleet Management Division. Many of these vehicles are aging past their cost-effective useful lives. To ensure reliable operations, provide uninterrupted service to the community, and reduce downtime and 2 of 8
maintenance costs, staff recommends purchasing fifty-seven vehicles and equipment based on competitive contract pricing available to government agencies.
Discussion
The Fleet Management Division is responsible for ensuring the City’s diverse fleet of over 700 vehicles are available, dependable, meet the highest environmental standards for a sustainable fleet, and are safe to operate from acquisition through disposal. The division routinely replaces vehicles that have reached the end of their cost-effective useful lives through the Vehicle Replacement Fund.
In response to the budgetary impacts of the COVID-19 pandemic, contributions to the Vehicle Replacement Fund were suspended for the General and Beach Funds, and vehicle replacements were temporarily suspended unless they were necessary for public safety or for the operation of essential City services. The Fleet Management Division has worked together with various City divisions to extend the useful lives of their vehicles as much as possible.
Fifty-seven vehicles have been identified for replacement. These vehicles are vital to essential operations but have reached or exceeded their cost-effective useful life, incurring maintenance costs of approximately 50% of the original purchase cost over the last two years. Due to their age and use, these vehicles require significant ongoing maintenance and repair costs to remain reliable, safe, and operational.
Staff is recommending the purchase of fifty-seven vehicles and equipment for a total amount not to exceed $11,019,070, of which $2,428,023 is from the General Fund, including a 10% or 30% contingency as itemized in Table 1. A detailed list of each vehicle is included to provide additional context. (Attachment A). Funding for the replacement of these vehicles is available and was collected over each asset’s useful life.
Due to high demand and limited vehicle availability, the Ford vehicles may not be readily available to the City. This may create a significant escalation in vehicle cost 3 of 8
and, as a result, the purchase order for the Ford vehicles would include a higher contingency amount. However, purchasing in higher numbers would put the City in a more competitive position when the manufacturer begins to accept orders for the year and would ensure the timeline for replacement is not extended any further past the cost-effective useful life of the vehicles. Given the long lead times for these vehicles, and an average delivery time of up to two years, it is essential to be proactive and start the process for replacement. These essential vehicles are key to public safety, maintaining our open spaces, and supporting the City Council’s priority of a Clean and Safe Santa Monica.
Table 1. Vehicle Replacement Program: Vehicle and Equipment Purchases Fund Dept. Vendor Description Qty. Extended Price*
RRR Public Works LA Truck Centers Side Loader 12 $6,008,972 RRR Public Works LA Truck Centers Front Loader 3 $1,399,310 RRR Public Works LA Truck Centers Rear Loader 1 $429,710 RRR Fund Total 16 $7,837,992
Wastewater Public Works National Auto Fleet Group Ford Mach-E 2 $147,038 Wastewater Public Works National Auto Fleet Group Ford F-250 1 $84,658 Wastewater Fund Total 3 $231,695
Water Public Works National Auto Fleet Group Ford F-250 3 $521,360 Water Fund Total 3 $521,360
General Police National Auto Fleet Group Ford PIU 28 $1,857,814 General Library National Auto Fleet Group Ford E-350 1 $90,148 General Library National Auto Fleet Group Ford Escape 1 $60,900 General Finance National Auto Fleet Group Ford E-250 2 $174,664 General Police National Auto Fleet Group Ford Explorer 1 $76,995 General Public Works National Auto Fleet Group Ford F-250 2 $167,501 General Fund Total 35 $2,428,023
Total 57 $11,019,070
*Extended price includes contingency
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Public Works Department
Resource Recovery and Recycling (RRR)
The RRR Division relies on these vehicles to carry out day-to-day operations that directly support the City’s priority of a Clean and Safe Santa Monica, including:
• Collection of recycling, organics, and waste materials; • Distribution and replacement of two-, three-, and four-yard collection bins; • Street sweeping along the City’s ~253 curb lane miles; and • Responding to requests for bulky and abandoned item pickup.
Water Resources Division
The City’s Water Resources Division operates and maintains three water treatment facilities and four water storage reservoirs as well as over 200 miles of water distribution mains, 150 miles of sewers, and 60 miles of storm drains throughout the City. Various service trucks and construction vehicles are used by Water Resources staff to operate and maintain this water and wastewater infrastructure.
These vehicles are also used to carry out day-to-day operations to provide water and wastewater services to the community, which include the following:
• Responding to emergencies, such as water main breaks, service line leaks, and wastewater overflows;
• Excavation and installation of water services for new and existing construction; • Transportation of personnel, equipment, and construction material to construction sites to service water and wastewater infrastructure; • Responding to customer service requests, such as investigating water leaks on property; and
• Maintaining storm drains and catch basins.
These vehicles are used year-round and are on standby 24 hours per day to respond to water, wastewater, and stormwater emergencies.
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Public Landscape
The Public Landscape Division maintains the City’s parks urban forest, and oceanfront.
Park Maintenance staff provide landscaping and irrigation in 28 parks and nearly 300 medians and open spaces. The oceanfront team preserves the 245-acre Santa Monica State Beach, including 3.5 miles of bike path, and the historic Santa Monica Pier. This division relies heavily on their vehicles to provide:
• Daily clean-up of Ocean Front Walk, including pick up of large and bulky items; • Responding to 311 requests;
• Pressure wash service to 3.5 miles of beach area including, Ocean Front Walk, parking lots, restrooms, and the bike path; and
• Maintain trees and parks on public streets and citywide.
Police Department
The Police Department uses their vehicles for emergency response, patrol, pursuit, and traffic enforcement. These police vehicles consist of patrol and pursuit units with a useful life of four years. The vehicles in the Police Department are used for a variety of purposes and assignments including emergency response, routine patrol, and specialized details and assignments.
Santa Monica Public Library
The Santa Monica Public Library’s Administration and Business Services Division uses their vehicles to provide program support and to transport supplies, materials, and books between their five locations. These vehicles are also used to conduct security patrols at Library facilities.
Finance Department
The Finance Department’s Treasury Division is responsible for collecting revenue from parking meters throughout the City. These vehicles provide support to the division to 6 of 8
carry out day-to-day operations and collect coins from over six thousand street parking meters throughout the City.
Vendor Selection
Exception to Competitive Bidding
Staff recommends: 1) National Auto Fleet Group, a distributer of Ford trucks, vehicle upfitting, chassis upfitting equipment, to furnish and deliver forty-one vehicles and; 2) Los Angeles Truck Centers, a distributer of Crane Carrier equipment, to furnish and deliver sixteen front, side, and rear loaders as an exception to competitive bidding under Santa Monica Municipal Code Section 2.24.250 (c): “Competitive procedures were followed by a governmental agency, federal, state, county, city, joint powers agency, special district, or cooperative purchasing agency and the goods or services are supplied to the City at the same or better price.”
On September 15, 2021, Sourcewell issued an RFP for Cars, Trucks, Vans, SUVs, Cab Chassis, & Other Vehicles. Under the terms of the RFP, and the resulting Sourcewell Agreement with National Auto Fleet Group, similar nationally leveraged purchasing discounts are also available to other government agencies. Sourcewell Agreement #091521-NAF was established on November 4, 2021, expires November 8, 2025, and has one one-year renewal option.
On June 9, 2020, Sourcewell issued an RFP for Class 4-8 Chassis with Related Equipment, Accessories, and Services. Under the terms of the RFP, and the resulting Sourcewell Agreement with Los Angeles Truck Center, a distributor of Crane Carrier equipment , similar nationally leveraged purchasing discounts are also available to other government agencies. The chassis is offered at an additional 20% reduced rate through preferred customer discount pricing. Sourcewell Agreement #060920-CRN was established on August 7, 2020, expires August 1, 2024, and has one one-year renewal option.
Sourcewell is a cooperative purchasing agency that serves government, education, 7 of 8
and nonprofit organizations. As a cooperative purchasing agency, they acquire goods or services by aggregating the demand of two or more entities in an effort to obtain more economical pricing.
Environmental Assessment
The purchase orders for replacement vehicles are categorically exempt from CEQA pursuant to Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines.
Section 15302 exempts Class 2 projects which “consists of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced”. The replacement vehicles would replace existing City fleet vehicles, with essentially the same purpose and capacity.
Therefore, the purchase orders qualify for a Class 2 exemption.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Vehicle Replacement Fund to award a purchase order with Los Angeles Truck Centers for the purchase and delivery of sixteen rear, side, and front loader trucks in the amount of $7,837,992; and a purchase order with National Auto Fleet Group for the purchase and delivery of forty-one Ford vehicles in the amount of $3,181,078.
Purchase Order Requests
Vendors CIP Account # Total Contract Amount
Los Angeles Truck Centers C7000010.689000 $7,837,992
National Auto Fleet Group C7000010.689000 $3,181,078
Total $11,019,070
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Prepared By: Doris Mejia, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. Attachment A Vehicles Staff Report 4.2023
B. NAFG Oaks
C. LA Truck Center - Velocity Oaks