REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Order to National Auto Fleet Group for Ten (10) Ford Ranger Service Vehicles (F19-141)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a Purchase Order to National Auto Fleet Group of Watsonville, California in the amount of $249,921.50 (including tire and delivery fees) excluding an estimated amount of $22,485 in sales tax, for ten (10) Ford Ranger service vehicles.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, Council approval is required for the procurement of good and/or services greater than $100,000 in any one transaction.
In accordance with Sunnyvale Municipal Code Section 2.08.220(a), the purchasing officer may authorize the City’s participation with one or more other 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 using methods similar to those set forth in Sunnyvale Municipal Code Section 2.08.060.
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(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The economical operation of the City’s fleet requires that vehicles and equipment be replaced prior to the time when operating costs exceed the life cycle cost, in accordance with the vehicle replacement schedule. Additionally, the vehicle replacement guidelines allow the City, in its best interest, to modernize the fleet when warranted as newer vehicles are more technically advanced, have improved safety systems, produce fewer emissions and are more fuel-efficient, which minimizes costs and assures safety.
The purchase of these vehicles follows Administrative Policy “Energy Conservation for City Owned Facilities and Equipment” (Chapter 6, Article 4). Subdivision 3.B and 3.C, which specifies that new vehicle purchases shall be energy efficient and where practical and economically feasible, alternative fuel vehicles shall be considered. Zero emission and hybrid alternative vehicles were researched and considered as part of the vehicle purchase process but were not available due to the vehicle model type and required specifications.
The identified vehicles for replacement are department vehicles used to perform daily and routine City operations. The vehicles are one-for-one replacements for the Department of Public Safety (3), Environmental Services Department (1), Department of Public Works (3) and Community Development Department (3). The identified vehicles are scheduled for replacement per the City’s Equipment Replacement Schedule.
Traditionally, the City has purchased fleet vehicles through a cooperative purchasing agreement or through a California Statewide Commodity Contract. The City has used cooperative agreements many times in the past to identify vendors and has experienced better pricing than when bidding the goods/services individually. The identified vehicles that meet the City’s requirements are available through Sourcewell, a national cooperative procurement organization offering publicly solicited contracts to government entities nationwide. It is in the best interest of the City to purchase through the Sourcewell contract with National Fleet Auto Group, its local authorized dealer, as. utilizing the Sourcewell contract pricing saves time researching and writing numerous vehicle specifications while benefiting from established vehicle pricing through this Agreement.
FISCAL IMPACT
Funding for the Purchase Order is available in the Fleet Equipment Replacement Fund
This table outlines the total cost of purchase with estimated sales tax.
|
Description |
Quantity |
Unit Cost |
|
Total |
|
Ford Ranger |
10 |
$23,788.40 |
|
$237,884.00 |
|
Tires Fee |
10 |
$8.75 |
|
$87.50 |
|
Delivery Fee |
10 |
$1,195.00 |
|
$11,950.00 |
|
Sub-Total |
|
$24,992.15 |
|
$249,921.50 |
|
Estimated Tax |
|
$2,248.51 |
|
$22,485.10 |
|
Total |
|
$27,240.66 |
|
$272,406.60 |
Funding Source
The City’s Fleet vehicles are funded by the General Services Fund-Fleet Services Sub-Fund which provides for ongoing fleet equipment replacement and maintenance. Funding is provided through internal service charges from the various affected departments based on the equipment used.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Authorize the issuance of a Purchase Order in the amount of $249,921.50 (including tire and delivery fees) excluding sales tax, in substantially the same form as Attachment 1 to the report, to National Auto Fleet Group for ten (10) 2020 Ford Ranger service vehicles
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Purchase Order