REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Order to U.S. Fleet Source in the Amount of $635,105.73 for Fourteen (14) Hyundai IONIQ Electric Service Vehicles (F24-222)
Report
STAFF RECOMMENDATION
Recommendation
Authorize the issuance of a Purchase Order in the amount of $635,105.73 (including tire, delivery fees, and estimated sales tax) for fourteen (14) Hyundai IONIQ Electric Service Vehicles to U.S. Fleet Source of Las Vegas, NV.
Report
BASIS FOR RECOMMENDATION
Staff is requesting authorization to purchase fourteen (14) electric vehicles to replace aging vehicles which are over 10 years old and are difficult and costly to maintain. Field staff use these utility vehicles for various duties. They often drive on unpaved areas and need large trunk space for equipment. The replacement vehicles meet utility vehicle requirements and are fully electric, replacing gasoline-powered vehicles.
The purchase of these vehicles follows Administrative Policy Manual, Chapter 6, Article 4, entitled “Energy Conservation for City Owned Facilities and Equipment”. Under this policy, Subdivisions 3.B and 3.C of Section 2 specify that passenger vehicles must be replaced with fuel efficient vehicles when practical, and that alternative fuel vehicles shall be considered when economically feasible.
The pricing for this purchase originates from the State of California Department of General Services (DGS) Contract No. 1-22-23-10E which is in effect through April 30, 2026 (Attachment 1). The City regularly purchases fleet vehicles through a cooperative purchasing agreement or through a California Statewide Commodity Contracts. The City has used DGS cooperative agreements to identify vendors and purchase vehicles and equipment, typically realizing better pricing than when bidding the goods or services individually.
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 15378(b)(2) (continuing administrative and maintenance activities) that has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
Budgeted funds for vehicle replacement are available in Project P20700 - Fleet Equipment which is funded from the Fleet Services Internal Service sub-fund (Fund 7021).
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 NOVA Workforce Services 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.
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 $250 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
A check or “Y” 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
___ General policy and legislative actions
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Dennis Jaw, Interim Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Tim Kirby, Interim City Manager
ATTACHMENTS
1. State of California Contract 1-22-23-10