Report to Mayor and City Council
Tuesday, March 05, 2024
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF A PURCHASE ORDER TO NATIONAL AUTO FLEET GROUP FOR TWO NEW ELECTRIC POWERED FORD 2023 TRANSIT CARGO VANS FOR THE PUBLIC WORKS DEPARTMENT (CITY COUNCIL)
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I. SUMMARY
The Public Works Department is seeking approval to purchase two new electric Ford Transit Cargo Vans (W9C) T-350 148" Med RF 9500 GVWR RWD. In recent years, our city has experienced a steady increase in demand for public services, resulting in the expansion of our workforce. As a result, our current fleet of vehicles has become insufficient to meet the growing needs of our residents. Additionally, with an increased focus on reducing our carbon footprint, it is an opportune time to transition to electric vehicles as they align with our sustainability goals.
The Purchasing Manager has waived the bidding requirements and requirement to enter into a contract, as permitted under the Carson Municipal Code Section 2611(g) bidding and Section 2605(b)(ii) (Exhibit 3).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. WAIVE the formal bidding procedures as defined by the Carson Municipal Code, Section 2610; and
2. AUTHORIZE the Purchasing Manager to issue a Purchase Order in the amount not to exceed $123,031.18 for purchase of two new electric powered Ford 2023 Transit Cargo Vans (W9C) T-350 148” Med RF 9500 GVWR RWD (Exhibit 1).
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate, and consistent with the requirements of the law.
IV. BACKGROUND
Section 2611(g) of the City’s Municipal Code (“CMC”) allows the City, through its Purchasing Manager, to dispense with competitive bidding processes to purchase materials, supplies, equipment, or services by utilizing a cooperative purchasing program engaged in by any local, county, State, or Federal public entity or entities, even if the contracts and implementing agreements entered into by the participating entity or association under those cooperative purchasing programs were not entered into pursuant to a process that resulted in the contract being awarded to the lowest responsible and responsive bidder under CMC 2610(i); provided, that the participating entity or association’s contract is current, the solicitation is within three years of City’s approval of the City contract entered into with the selected bidder via cooperative purchasing, or written justification is provided justifying use of an older solicitation. The City Council has made a determination that the benefits to the City of utilizing cooperative purchasing outweigh any incremental higher price that may be paid by City in certain instances as a result of not soliciting directly utilizing the lowest responsible and responsive bidder standard under CMC 2610(i).
Sourcewell is a cooperative purchasing agency established to allow participating municipal agencies to reduce the cost of procurement by leveraging the benefits of contract purchasing. Through solicitations, Sourcewell contracts bring considerable value and efficiencies to members through nationally leveraged contracted suppliers with access to the highest quality products and brands. Each solicitation and RFP contain language, which includes all qualified customers in all fifty states. Sourcewell contract purchasing solutions are reviewed by the Sourcewell Board of Directors and awarded on the members’ behalf. The City of Carson (ID# 38521) is a member of Sourcewell.
The Public Works Fleet Maintenance Division is responsible for the upkeep and repair of the City's fleet, consisting of 250 vehicles and equipment. They also develop specifications for new vehicle and equipment requests. Although the initial cost of purchasing electric vans may be higher than that of conventional vehicles, the long-term operational and maintenance costs are significantly lower. This is because electric vans have fewer moving parts, resulting in reduced maintenance and repair expenses. Additionally, the cost of charging these vehicles tends to be less expensive than gasoline or diesel, leading to substantial savings in fuel costs for the city. By investing in electric vans now, the city can benefit from significant cost savings over the lifespan of these vehicles.
National Auto Fleet Group remains a member of the Sourcewell cooperative purchasing agency and Contract #091521-NAF will be used for this purchase (Exhibit 3). The total amount for the electric vans is $123,031.18.
The City’s Purchasing Manager has waived the formal bidding process for purchase of the vehicle as permitted under Section 2611(g) of the CMC (Exhibit 2). Finally, it should also be noted that Section 2606(b)(ii) of the CMC requires the City to enter into a contract for purchases of any personal property, including materials, supplies and equipment, of $75,000 or more over a fiscal year, unless the Purchasing Manager waives this requirement. The Purchasing Manager has waived such contract requirement for purchase of the electric vans (Exhibit 2).
V. FISCAL IMPACT
None. Funding required for the Purchase Order for the electric Transit Vans in the amount of $123,031.18 is budgeted in the current Fiscal Year General Fund account no. 638-99-999-999-8003.
VI. EXHIBITS
1. Quotation/Equipment Specifications from National Auto Fleet Group (EV Van) (pgs. 4-11)
2. Purchasing Waiver (pg. 12)
3. Sourcewell Contract (pgs. 13-46)
Prepared by: Dr. Arlington Rodgers, Public Works Director & Freddy Loza Public Works Superintendent, Facilities and Fleet