Title:
Title
Cooperative Purchase Agreement: Vehicle Purchases
End
FileID
File ID: 2019-00400
Location
Location: Citywide
Recommendation:
Recommendation
Adopt a Resolution: 1) authorizing the City Manager or the City Manager’s designee to: a) increase the revenue and expenditure budgets in the Department of Public Works Fiscal Year (FY) 2018/19 operating budget (Fleet Fund, Fund 6501) in the amount of $180,587; b) transfer $180,587 from the FY2018/19 Department of Public Works, Parking Services Division operating budget (Parking Fund, Fund 6004) to the Public Works Parking Fund Fleet Project (I06154000); 2) approving the use of the cooperative purchase agreements between the State of California and Downtown Ford Sales and Winner Chevrolet (Contract No. 1-18-23-10A & 1-18-23-20A) for the purchase of five off-street parking operations vehicles in an amount not to exceed $180,587; and 3) authorizing the City Manager or the City Manager’s designee to execute the purchases specified above.
Contact: Alison Kerstetter, Program Specialist, (916) 808-1163; Mark Stevens, Fleet Manager, (916) 808-5869, Department of Public Works
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Agreement
3-Resolution
Description/Analysis
Issue Detail: The Department of Public Works, Fleet Management Division, has a customer requirement to purchase five off-street parking operations vehicles for the Department of Public Works, Parking Services Division. The vehicles will be used to maintain and manage parking facilities within the city.
Policy Considerations: The recommendations in this report are in accordance with City Code Chapter 3.56.
Economic Impacts: None
Environmental Considerations: No environmental review is necessary because the recommendations in this report involve the purchase of vehicles and are not considered to be a project in accordance with Section 15378(b)(2) of the California Environmental Quality Act guidelines.
Sustainability: The recommended purchases are consistent with the updated Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478).
Commission/Committee Action: None
Rationale for Recommendation: After reviewing the available purchase options, the Fleet Management Division has determined that the State of California cooperative purchase agreements with Downtown Ford and Winner Chevrolet represent the most advantageous purchasing strategy. The contracts were competitively bid, and the State of California receives greater discounts from the manufacturers due to a higher purchase volume than the City would receive if issuing its own bid.
In an ongoing effort to maximize cost savings and staff resources, many government agencies share contracting efforts through cooperative purchasing. This procurement method increases pricing competitiveness and lowers operating costs through volume buying. When comparing the administrative costs of procurement, staff considers product research, source selection, specifications, advertising, staff reports, awarding, protest, and administration of the contract.
The City has used both regional and national cooperative purchase agreements to complement its own contracting initiatives. Cooperative purchasing enables City departments to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing also leverages internal and external resources to maximize cost savings opportunities for the City.
Financial Considerations: The recommended purchase, in a total amount not to exceed $180,587, will be made from the Department of Public Works FY2018/19 operating budget (Fleet Fund, Fund 6501) and will be charged to the Public Works Parking Fund Fleet Project (I06154000) (Parking Fund, Fund 6004).
An increase to the Department of Public Works operating revenue and expenditure budgets (Fund 6501) in the amount of $180,587 is necessary to fund this purchase. A transfer in the amount of $180,587 (Parking Fund, Fund 6004) from the FY2018/19 Department of Public Works, Parking Services Division operating budget to the Public Works Parking Fund Fleet Project (I06154000) is requested to cover the cost of the vehicles. Upon completion of the recommended budget adjustments, sufficient funding will be available in the Department of Public Works, Fleet Division’s FY2018/19 operating budget and in the Public Works Parking Fund Fleet Project (I06154000) to support the recommended purchase.
Local Business Enterprise (LBE): Downtown Ford Sales is an LBE. Winner Chevrolet is not an LBE. The minimum LBE participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.