Title
New and Replacement Light Duty Vehicle Purchases [Published for 10-Day Review 05/17/2024]
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FileID
File ID: 2024-00903
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or City Manager’s designee to execute Supplement No. 3 to Contract No. 2023-0564 with Elk Grove Ford for the purchase of new and replacement Ford light-duty vehicles increasing the amount of the contract by $2,000,000 for a revised total contract not-to-exceed amount of $4,900,000.
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Contact
Contact: Bobbie Small, Program Specialist, (916) 808-6711, bsmall@cityofsacramento.org; Alison Kerstetter, Fleet Manager, (916) 808-1163, akerstetter@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None.
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Attachments
Attachments:
1-Description/Analysis
2-Supplement Contract No. 3
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Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works, Fleet Management Division, consistently needs to procure light-duty vehicles to adhere to its vehicle replacement schedule. Fleet Management has streamlined its operations by standardizing the use of Ford light-duty products, facilitating easier repair and equipment compatibility. The new vehicles will replace existing light-duty vehicles that have surpassed their useful lifespan due to either high mileage or excessive maintenance costs.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with Sacramento City Code Chapter 3.56 and Sacramento City Council Rules of Procedure, Chapter 7, Section E.2.d, which requires additional posting time for labor agreements and agreements greater than $1 million. This item was published for 10-Day review on May 17, 2024, in compliance with City Code.
Due to the forecasted structural budget gap, the City Manager has directed City departments to minimize costs and for all new contracts to receive an additional level of scrutiny to ensure they are necessary for the operation of the City. This contract has been reviewed and approved by the City Manager’s Office to advance to Council for approval. Funding for the proposed contract beyond FY2023/24 is subject to Council approval.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): 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.
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Sustainability
Sustainability: The recommended purchases are consistent with the Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478).
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: Fleet Management has completed through research to
explore alternatives for procuring replacement light-duty vehicles. However, due to challenges such as limited order banks and supply chain disruptions, vehicle availability has markedly declined over the last three years. Current vehicle orders are experiencing prolonged fulfillment times, leading to delays in delivery. While in-stock vehicles are immediately available. To mitigate the impact of manufacturing issues, a multi-year contract was awarded to Elk Grove Ford. This contract ensures consistent purchase availability until the challenges surrounding vehicle production subside. Moreover, the contract aligns with the division’s objective of standardizing the fleet with Ford products, thereby promoting consistency an efficiency.
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FinancialConsiderations
Financial Considerations: This supplemental contract for an amount of $2 million, provides a new contract not-to-exceed amount of $4.9 million. Potential purchases for this supplemental contract will be made by the Department of Public Works Fiscal Year (FY) 2023/24 operating budget (Fleet Fund, Fund 6501) and charged to the appropriate multi-year operating projects (MYOPs) when procured. Sufficient funding currently exists in the Department’s FY2023/24 operating budget and the MYOP projects and is anticipated for FY24/25. No purchases will be authorized unless an available budget exists.
Due to the forecasted structural budget gap, the City Manager has directed City departments to minimize costs and for all new contracts to receive an additional level of scrutiny to ensure they are necessary for the operation of the City. This contract has been reviewed and approved by the City Manager’s Office to advance to Council for approval. Funding for the proposed contract beyond FY2023/24 is subject to Council approval.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Elk Grove Ford is not an LBE. Goods contracts over $250,000 do not have a minimum LBE requirement.
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Background
Background On May 16, 2023, the City entered contract 2023-0564 with Elk Grove Ford for purchase of Ford vehicles in an amount not to exceed $900,000 for a one-year contract period with four potential one-year extensions. Through Supplemental Contract No. 1, dated June 14, 2023, the not to exceed amount was increased by $2,000,000 for a new not to exceed amount of $2,900,000. Supplemental Contract No. 2, dated March 20, 2024, extended the time of performance until May 15, 2025. The increased consideration in Supplemental Contract No. 3 is necessary to cover the cost of additional Ford vehicle purchases through the contract extension.
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