City Council Agenda Report
Meeting Date: June 20, 2023
From: Freddie Agyin, Director of Health and Environmental Control Department: Health and Environmental Control
Submitted by: Veronica Petrosyan, Deputy Director of Health and Environmental Control Subject
Utility Vehicle Purchase
Recommendation
A. Find that the purchase of a utility vehicle for the Health Department is exempt from competitive bidding requirements pursuant to Vernon Municipal Code Section 3.32.070; and B. Approve and authorize the City Administrator to execute a purchase contract directly with an auto dealership that offers the lowest price for a 2023 Ford F-150 Lightning model and has the vehicle currently available in its inventory at a price not-to-exceed $71,000.
Background
The South Coast Air Quality Management District (SCAQMD) Fleet Rule 1191 mandates public fleet operators to procure low-emitting gasoline or alternative-fuel vehicles when adding or replacing vehicles to their vehicle fleet. Vehicles must be replaced with newer lower or zeroemission vehicles such as electric, compressed natural gas (CNG), hybrid, or gasoline vehicles rated LEV or better. In addition to SCAQMD’s Rule 1191, the California Air Resources Board (CARB) is developing an Advanced Clean Fleet regulation which mandates public fleet operators to procure electric vehicles when adding or replacing vehicles in their vehicle fleet beginning in 2024. Fleet electrification is also in alignment with the City’s goal to reduce greenhouse gases and demonstrates the feasibility of newer technology in work settings to the public.
The Department of Health and Environmental Control (DHEC) needs one utility vehicle for emergency response activities. The DHEC conducts emergency response for hazardous materials spills and illicit discharges throughout the city which requires staff to have a vehicle equipped with items for spill containment and site clean-up activities. Given its intended use and in consideration of the SCAQMD and CARB rules noted above, staff has identified the Ford F-150 Lightning electric vehicle as a suitable option.
The DHEC has secured five quotes from various auto dealerships in the region for the Ford F150 Lightning electric vehicle. The quotes received range in price from $65,129 to $87,839. The cost to purchase the lowest priced vehicle is anticipated not to exceed $71,000 (including applicable taxes and fees). If this specific vehicle quoted at $65,129 should no longer available, however, staff would pursue a purchase from an auto dealership with the next lowest price quote received.
Typically, purchases of City fleet vehicles are facilitated through a Sourcewell cooperative buying contract. Over the past couple of years, the City has been unable to secure on a consistent basis electric vehicles through National Fleet Auto Group which is a Sourcewell-based contract. As a result, many of the City’s purchase orders remain open for well over a year. This is mainly due to an overall lack of available new electric vehicle inventory in the market. Since the current fiscal year is coming to a close, the DHEC is seeking to procure the utility vehicle in a timely manner, while funds are available in the departmental allocation for such capital expenditures.
As such, the DHEC is recommending that the Council find it is in the best interest of the City to exempt the vehicle purchase from competitive bidding and authorize the City Administrator to execute a purchase contract with the lowest bidding auto dealership that has the Ford F-150 Lightning model in inventory. Upon approval, the DHEC will engage the dealership(s) to proceed with the purchase of an available vehicle.
Fiscal Impact
The fiscal impact is not-to-exceed $71,000. Sufficient funds for the purchase of the vehicles are available in the General Fund, Health Department, Capital Outlay Account No. 011-020-200- 660000 in Fiscal Year 2022-23.
Attachments
1. Auto Nation Quote
2. Ford of Long Beach Quote
3. Ford of Sunland Quote
4. Ken Grody Ford Quote
5. True Car Quote