City Council Agenda Report
Meeting Date: February 4, 2025
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Senior Management Analyst
Subject
Purchase Order with National Auto Fleet Group
Recommendation
A. Approve and authorize the issuance of a Purchase Order with National Auto Fleet Group (NAFG) for a 2025 Ram 1500 Laramie 4x4 Crew Cab, for a total not-to-exceed amount of $78,923.25;
B. Authorize a contingency amount, of twenty percent (20%) or $15,785 for the vehicle purchase from NAFG in case of unforeseen fluctuations in price caused by inflation or supply chain issues; and
C. Authorize the City Administrator to facilitate the bidding and purchase of a comparable vehicle for an amount not-to-exceed $94,708 (NAFG price plus contingency amount) from an alternate source/dealership should NAFG vehicle availability be impacted by inventory shortages.
Background
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 that meet LEV standards or better. Diesel powered vehicles do not meet fleet rule requirements.
Vernon Public Utilities (VPU) has developed a five-year plan to replace vehicles in its fleet. This plan considers factors such as vehicle age, mileage, usage and compliance with SCAQMD regulations to ensure safety and reduce operating risks. Additionally, it incorporates recommendations from the Public Works Garage staff, who have valuable insights into the condition of older VPU vehicles. Replacing these vehicles will help address the challenges posed by the scarcity of replacement parts, which has led to increased repair costs and a greater maintenance workload for Public Works staff. In accordance with the vehicle replacement plan, a 2005 Ford F350 XL Super Duty diesel, with City vehicle ID L1044, was identified for replacement and was retired on March 8, 2024.
Staff recommends approval of a Purchase Order with NAFG in the amount of $78,923.25 for the purchase of a 2025 Ram 1500 Laramie 4x4 Crew Cab. Additionally, staff recommends a contingency amount of 20% or $15,785, in the event vehicle prices fluctuate due to inflation, supply chain issues impact vehicle inventory, or if a comparable vehicle make and model must be purchased from another source/dealership.
Pursuant to Vernon Municipal Code (VMC) Section 3.32.110(A)(5), the proposed purchase is 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 within the past twelve (12) months, the City has paid or awarded NAFG a total of $205,817.62 in Purchase Orders for various vehicle purchases.
Fiscal Impact
The fiscal impact is estimated at $94,708. Funds are available in the Electric Fund, Field Operations/Maintenance, Capital Equipment-Auto, Account Number 055-050-550-660010 for the current fiscal year. Approval of this action also requires an appropriation of $12,926.96 for a Transfer Out from the Electric Fund, Field Operations/Maintenance, Repairs & Maintenance, Account Number 055-050-550-529000 and a Fund Transfer In to the Electric Fund, Field Operations/Maintenance, Capital Equipment-Auto Account No. 055-050-550-660010 for the current fiscal year.
Attachments
1. National Auto Fleet - Quote ID 30698RL