City Council Agenda Report
Meeting Date: September 17, 2024
From: Daniel Calleros, Interim City Administrator
Department: City Administration
Submitted by: Lilia Hernandez, Assistant to the City Administrator Subject
Report on Vehicle Purchase Approved by the City Administrator Recommendation
Receive and file report on City Administrator approved vehicle purchase of one 2025 Ford Explorer ST from South Bay Ford for a total amount of $64,131.59.
Background
Historically, the City has purchased vehicles through Sourcewell, a government agency and purchasing cooperative offering hundreds of competitively solicited cooperative purchasing contracts that other government agencies can utilize for procurement. However, in recent years, vehicle purchases through Sourcewell have been extremely challenging due to limited available inventory, long lead times for production, and a high demand for vehicles from other public agencies. As a result, staff have looked to purchase vehicles directly from dealerships while making an effort to obtain the best price for the City. Purchases from dealerships are also challenging as inventory is low, demand is high, and dealerships do not offer the convenience of holding vehicles to allow staff time to seek City Council approval of vehicle purchases.
In June 2024, after researching twenty-six (26) local dealerships, Vernon Public Utilities (VPU) staff identified five dealerships that listed a desired vehicle model, a 2025 Ford Explorer ST, on their websites. The purchase of the new vehicle was necessary, as VPU needed to replace a 2002 Chevrolet Tahoe (City Vehicle ID L1008) with over 250,000 miles that was no longer a reliable vehicle for their fleet. In order to obtain a competitive price for the City, staff contacted the five dealerships and requested quotes for the desired vehicle. Subsequently, VPU requested approval from the City Administrator for the purchase of a 2025 Ford Explorer ST from South Bay Ford for a total amount of $64,131.59. The City Administrator approved the purchase, as South Bay Ford offered the lowest quote and could deliver the vehicle in approximately 30-40 days. The 2025 Ford Explorer ST purchased by the City was delivered the first week of September 2024.
Given the challenges associated with vehicle purchases, staff is working on amendments to the Vernon Municipal Code purchasing ordinance to facilitate future vehicle purchases.
Fiscal Impact
The fiscal impact is $64,131.59. Sufficient funds are available in Electric Fund, Administration Department, Capital Outlay Account No. 055-050-580-660000 for the current fiscal year.
Attachments
None.