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APPROVE A MOTION TO AUTHORIZE COOPERATIVE PURCHASING AGREEMENTS FOR THE PURCHASE OF SEDANS, SUVS, AND VANS
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Approve the use of a Leveraged Purchasing Agreement through the State of California, Department of General Services, Contract No. 1-22-23-10B-E, in the amount of $185,075.24 from Freeway Toyota of Hanford, CA, for the purchase of seven hybrid sedans.
3. Approve the use of a Leveraged Purchasing Agreement through the State of California, Department of General Services, Contract No. 1-22-23-23B-I, in the amount of $546,366.01 from Winner Chevrolet of Colfax, CA, for the purchase of nine SUVs.
4. Approve the use of a Leveraged Purchasing Agreement through the State of California, Department of General Services, Contract No. 1-22-23-14C, in the amount of $102,243.44 from Folsom Lake Ford of Folsom, CA, for the purchase of two SUVs.
5. Approve the use of a Leveraged Purchasing Agreement through the State of California, Department of General Services, Contract No. 1-22-23-23B-I, in the amount of $254,223.32 from Downtown Ford of Sacramento, CA, for the purchase of three SUVs and two vans.
6. Approve the use of a Leveraged Purchasing Agreement through the State of California, Department of General Services, Contract No. 1-22-23-23B-I, in the amount of $104,996.39 from Watsonville Fleet Group, Watsonville, CA, for the purchase of one van.
7. Authorize the City Manager to execute five Cooperative Purchasing Agreements in the total amount of $1,192,904.40 with Freeway Toyota, Winner Chevrolet, Folsom Lake Ford, Downtown Ford, and Watsonville Fleet Group for the purchase of seven hybrid sedans, 14 SUVs, and three vans.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
In Fiscal Year (FY) 2023-24 Public Works posted a request for bid (RFB), Project No. OM-24-140, for the purchase of Sedans, Vans, and SUV’s to be utilized by Community Services, Fire, Municipal Utilities, Police, and Public Works Departments. The RFB closed on May 23, 2024, and received zero responses.
Due to the unresponsive bid result, Public Works’ staff recommends using Leveraged Purchasing Agreements (LPAs) through the State of California, Department of General Services (DGS), Contract Nos. 1-22-23-10B-E, 1-22-23-23B-I, 1-22-23-14C, and 1-22-23-23B-I. Use of the LPAs will provide increased opportunities to be more competitive in replacing vehicles.
It is recommended that Council approve a motion authorizing the City Manager to execute five Cooperative Purchasing Agreements (COOPs) through the DGS with Freeway Toyota, Winner Chevrolet, Folsom Lake Ford, Downtown Ford, and Watsonville Fleet Group for the purchase of seven hybrid sedans, 14 SUVs, and three vans in the total amount of $1,192,904.40.
DISCUSSION
Background
The City’s replacement criteria for sedans, SUVs, and vans, based on industry standards for performance and efficiency, is 10 years or 100,000 miles. Marked patrol SUV replacement criteria are six years or 100,000 miles. Adherence to this standard replaces equipment before routine failures and breakdowns are experienced, reducing the demand for extensive mechanical repairs. The replacement standard increases the resources available for preventative maintenance and is critical to the availability and performance of all fleet equipment, which includes all public safety and emergency response vehicles. Fleet staff identified 21 units in service among various departments that exceed the age and/or mileage criteria, have recurring mechanical or operational issues, and/or are non-operational due to a motor vehicle accident (Attachment A). Replacement of these units is recommended.
Present Situation
The Fiscal Year (FY) 2023-24 Sedan, Van, and SUV replacement plan accounted for the purchase of 24 vehicles, 21 replacement and 3 new additions.
Staff recommends the acquisition of seven hybrid sedans from Freeway Toyota, nine SUVs from Winner Chevrolet, two SUVs from Folsom Lake Ford, three SUVs and two vans from Downtown Ford, and one van from Watsonville Fleet Group. The use of LPA contracts streamline the procurement process and takes advantage of volume purchasing. LPA contracts have been competitively bid, reviewed, evaluated, and recommended to the State of California for consideration of award. The use of these contracts is optional and is available to California State and local government agencies.
It is recommended that Council approve a motion authorizing the City Manager to execute five COOPs through the DGS, in the total amount of $1,192,904.40, for the purchase of:
• Seven hybrid sedans from Freeway Toyota of Hanford, CA, in the amount of $185,075.24 (Attachment B).
• Nine SUVs from Winner Chevrolet of Colfax, CA, in the amount of $546,366.01 (Attachment C).
• Two SUVs from Folsom Lake Ford of Folsom, CA, in the amount of $102,243.44 (Attachment D).
• Three SUVs and two vans from Downtown Ford of Sacramento, CA, in the amount of $254,223.32 (Attachment E).
• One van from Watsonville Fleet Group of Watsonville, CA, in the amount of $104,996.39 (Attachment F).
The equipment being replaced will be removed from the fleet and sold at public auction.
Findings
Pursuant to Stockton Municipal Code section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. The DGS established LPAs with Freeway Toyota, Winner Chevrolet, Folsom Lake Ford, Downtown Ford, and Watsonville Fleet Group to provide access to preferential pricing of fleet and enforcement vehicles.
2. The LPAs with Freeway Toyota, Winner Chevrolet, Folsom Lake Ford, Downtown Ford, and Watsonville Fleet Group were established pursuant to a formal competitive bidding process conducted by the DGS on behalf of all California State and local government agencies.
3. Taking advantage of the LPAs negotiated by the DGS will save the administrative expense of City staff conducting separate procurements.
4. The specifications for the replacement equipment available through the DGS contracts meet the City’s requirements for their equipment type.
FINANCIAL SUMMARY
There is sufficient budget available in the FY 2024-25 Fleet ISF Equipment Acquisition Account, Police Department Equipment Acquisition Account, and Municipal Utilities Capital Outlay Vehicle Acquisition Accounts to execute five COOPs through the DGS, in the total amount of $1,192,904.40.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Equipment Replacement List
Attachment B - COOP with Freeway Toyota
Attachment C - COOP with Winner Chevrolet
Attachment D - COOP with Folsom Lake Ford
Attachment E - COOP with Downtown Ford
Attachment F - COOP with Watsonville Fleet Group