City Council Agenda Report
Meeting Date: December 5, 2023
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Administrative Analyst
Subject
Purchase Orders with National Auto Fleet Group
Recommendation
A. Approve and authorize the issuance of a Purchase Order with National Auto Fleet Group (NAFG) for a 2024 Ford Super Duty F-350, for a total amount not-to-exceed $76,558.10; B. Authorize a contingency amount of twenty percent (20%) or $15,311.62 for unforeseen fluctuations in price, and grant authority to the City Administrator to issue a Supplemental to the Purchase Order to NAFG for an amount up to the contingency amount; C. Approve and authorize the issuance of a Purchase Order with NAFG for a 2024 Ford Super Duty F-350 with a liftgate, for a total amount not-to-exceed $84,143.49; and D. Authorize a contingency amount of twenty percent (20%) or $16,828.70 for unforeseen fluctuations in price, and grant authority to the City Administrator to issue a Supplemental to the Purchase Order to NAFG for an amount up to the contingency amount.
Background
Vernon Public Utilities (VPU) and the Public Works Department assessed VPU’s vehicle fleet to identify vehicles in need of replacement. The evaluation consisted of assessing the useful life of vehicles and equipment in terms of age, mileage, and usage. After a thorough review of VPU’s fleet vehicles that require replacement, a 2004 Chevrolet Silverado 2500 with City vehicle ID L1036 and a 1990 Chevrolet Cheyenne 3500 with City vehicle ID L1023 were identified for replacement. Additionally, Public Works Garage staff has recommended the surplus and replacement of many older VPU vehicles, as replacement parts have become extremely scarce, resulting in higher repair costs and an inordinate amount of maintenance for Public Works staff.
The South Coast Air Quality Management District (SCAQMD) Fleet Rules 1191 and 1196 mandate 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 zero-emission vehicles such as electric, compressed natural gas (CNG), hybrid, or gasoline vehicles rated LEV or better. In addition to SCAQMD’s Fleet Rules, the California Air Resources Board has finalized an Advanced Clean Fleet (ACF) regulation, which mandates public fleet operators to procure electric vehicles when adding or replacing vehicles in their fleet beginning in 2024. The ACF regulation will limit the City’s ability to purchase internal combustion engine (ICE) vehicles beginning on January 1, 2024.
Staff recommends approval of two Purchase Orders with NAFG. The first Purchase Order will be in the amount of $76,558.10 for the purchase of a 2024 Ford Super Duty F-350; and recommends a contingency amount of 20%, or $15,311.62. The second Purchase Order will be in the amount of $84,143.49 for the purchase of a 2024 Ford Super Duty F-350 with a Liftgate; and recommends a contingency amount of 20% or $16,828.70. Staff has requested approval of a contingency amount of 20% for both Purchase Orders with NAFG in the event that vehicle prices fluctuate due to inflation, supply chain issues arise impacting vehicle inventory, or if VPU must purchase comparable vehicles that are different makes and models.
Pursuant to Vernon Municipal Code (VMC) Section 3.32.110(A)(5), the proposed purchases are exempt from competitive bidding, as the purchase is through Sourcewell, which offers participating agencies cooperative, competitively solicited buying contracts. The quote secured from NAFG for this potential purchase is based on Sourcewell contract (contract 091521-NAF) pricing.
City Council approval for this purchase is required pursuant to VMC Section 3.32.030(B), as during the last 12 months, the City has awarded the vendor NAFG more than $100,000 in contracts.
Fiscal Impact
The fiscal impact is estimated at $192,841.91. Sufficient funds are available in the Gas Fund, Capital Outlay-Auto, Account No. 056-060-600-660010 and Electric Fund, Malburg Generation Station Department, Capital Outlay Account No. 055-050-586-660000 for the current fiscal year.
Attachments
1. National Auto Fleet - Quote ID 26443 R1
2. National Auto Fleet - Quote ID 26443 R2