Agenda Item #12.2
For Council Meeting of: November 1, 2022
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: ZAC BRAND, FLEET SUPERINTENDENT
TRANSPORTATION AND PUBLIC WORKS
BRANDALYN TRAMEL, PURCHASING AGENT
FINANCE DEPARTMENT
AUTHOR’S ZAC BRAND, FLEET SUPERINTENDENT AND JENNIFER MYLES, SENIOR BUYER SUBJECT: APPROVAL OF USE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES CONTRACT AND ISSUANCE OF PURCHASE ORDER FOR SIX 2023 TOYOTA SIENNA HYBRID MINIVANS TO FREEWAY TOYOTA, HANFORD, CA AGENDA ACTION: RESOLUTION
RECOMMENDATION
It is recommended by the Transportation and Public Works and Finance Departments that the Council, by resolution: 1) approve a cooperative procurement purchase utilizing the California Department of General Service’s Statewide Contract for Fleet Vehicles Contract 1-22-23-23A-1; and 2) authorize the Purchasing Agent to issue a purchase order for six 2023 Toyota Sienna Hybrid Minivans for $37,625.60 each, to Freeway Toyota, Hanford, California, for a total not exceed amount of $225,753.61. These vehicles are all allocated as replacements for existing Police Patrol vehicles.
EXECUTIVE SUMMARY
Purchasing received a purchase requisition from TPW Fleet Services for issuance of a purchase order utilizing the State of California Department of General Service (DGS) Statewide Contract Fleet Vehicles, Contract 1-22-23-23A-1, to procure six Toyota Sienna Hybrid Minivans. These vehicles will be allocated as direct replacements for existing assets.
BACKGROUND
Under the City’s guidelines for replacement of fleet vehicles, the Transportation and Public Works Department (TPW) Fleet Maintenance Division selects a vehicle for replacement when it has reached the end of its cost-effective life cycle. These vehicles have met the replacement criteria using a 15 point replacement program, an industry standard to predict when best to sell a vehicle. Repair costs, age, and mileage are considered in the point calculation performed by our Faster Fleet software system.
These purchase of the six vehicles will be allocated as direct replacements for existing assets #17205, #17206, #17207, #17304, #17310, and #17407.
TPW Fleet Services performed extensive research with local vendors that advertise available products meeting the required vehicle specification, including Freeman Toyota, Manly Honda,and CardinalWay Chrysler. TPW Fleet Services learned that local vendors did not have facility to provide firm pricing or availability on this body style vehicle due to the reduced allocations from manufacturers and the increasing backlog of retail orders to the general public.
TPW Fleet Services researched optional purchasing methods and discovered the California State Department of Goods and Services Contract 1-22-23-23 providing pricing and availability on multiple products that meet the minimum required vehicle specification.
The Toyota Sienna Hybrid minivan is the only hybrid product option that is the least expensive, therefore selected as the best available value on the DGS contract.
PRIOR CITY COUNCIL REVIEW
Not applicable.
ANALYSIS
Santa Rosa City Code Section 3-08.160 allows for utilization of purchasing agreements maintained by the State, County, or other public agencies when adventageous to the City.
Freeway Toyota provided pricing lower than the advertised MSRP for the same product.
Based on the pricing the City obtained from Freeway Toyota, and the limited availability of the required vehicle, TPW and Purchasing staff considers it advantageous to the City to utilize the State of California Department of Goods and Services Contract 1-22-23-23 to procure the required product. Upon approval by Council, a purchase order will be issued using the City’s standard Terms and Conditions for the vehicles described above and within the quote attached, in an amount not-to-exceed $225,753.61.
FISCAL IMPACT
Funds for this operational expense have been allocated in the FY 2022/23 budget under the TPW Equipment Replacement Fund account number 300106-5584. There is no direct fiscal impact to the General Fund.
ENVIRONMENTAL IMPACT
The Council finds that the proposed action is exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15061(b)(3) and 15378 in that there is no possibility that the implementation of this action may have significant effects on the environment, and that no further environmental review is required.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable
NOTIFICATION
Not applicable
ATTACHMENTS
Resolution/Exhibit A – Freeway Toyota Quote
CONTACT
Zac Brand, [email protected], 707-543-3717
Brandalyn Tramel, [email protected], 707-543-3706
APPROVAL OF USE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES CONTRACT AND ISSUANCE OF PURCHASE ORDER FOR SIX 2023 TOYOTA SIENNA HYBRID MINIVANS TO FREEWAY TOYOTA, HANFORD, CA