REPORT TO COUNCIL
SUBJECT
Title
Modify an Existing Purchase Order With US Fleet Source for Hyundai IONIQ Electric Service Vehicles (F25-476) in the Amount of $53,238.47
Report
REPORT IN BRIEF
Approval is requested to modify an existing purchase order with US Fleet Source, increasing the PO amount from $635,105.73 to $688,344.72 to cover the remaining balance of sales tax owed.
EXISTING POLICY
Pursuant to Section 2.08.040(d) of the Sunnyvale Municipal Code (SMC), Council approval is required for the procurement of goods and/or services greater than $250,000 in any one transaction.
Section 2.08.220(b) of the SMC authorizes the purchasing officer to direct the city’s participation with one or more governmental, public or quasi-public agencies in a cooperative agreement for the procurement of goods and/or services, provided that at least one of the agencies has solicited bids.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301(c) for existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities.
BACKGROUND AND DISCUSSION
On August 13, 2024 (RTC No. 24-0775), staff requested authorization to purchase fourteen (14) electric vehicles to replace aging vehicles that were over ten years old and difficult and costly to maintain. Field staff use these utility vehicles for various duties. They often drive on unpaved areas and need ample trunk space for equipment. The replacement vehicles met utility vehicle requirements and are fully electric, replacing gasoline-powered vehicles and follow Administrative Policy Manual, Chapter 6, Article 4, entitled “Energy Conservation for City-Owned Facilities and Equipment”.
The pricing for this purchase originated from the State of California Department of General Services (DGS) Contract No. 1-22-23-10E. US Fleet Source initially quoted staff $635,105.73 for fourteen (14) Battery Electric Vehicles. The total costs were stated to be inclusive of all fees and sales tax; however, it was later discovered that the vendor erroneously calculated sales tax on only one (1) of the fourteen (14) vehicles. Approval is requested to modify the existing purchase order with US Fleet Source and increase the PO amount from $635,105.73 to $688,344.72 to cover the remaining balance of sales tax owed.
FISCAL IMPACT
Budgeted funds for vehicle replacement are available in Fund 7021 - Fleet Services Internal Service Sub-fund under Project P20700 - Fleet Equipment. Fleet services are funded through internal service transfers from other funds in the form of internal service charges.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Authorize the City Manager to modify an existing purchase order with US Fleet Source in the amount of $53,238.47.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
_X_ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager