REPORT TO COUNCIL
SUBJECT
Title
Action on the Award of Purchase Orders Greater than $250,000, with an Aggregate Amount of $4,275,000, for Vehicles and Equipment for the Fire, Silicon Valley Power, Public Works and Water and Sewer Utilities Departments to be Funded by Amounts Previously Approved in the Vehicle Replacement Fund in the City’s Operating Budget for Fiscal Year 2022/23.
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Department of Public Works (DPW) maintains approximately 760 fleet assets citywide with an original acquisition value of approximately $45,000,000. In addition, DPW is responsible for purchasing replacement vehicles to support mission critical operations performed by City departments. DPW procures replacement vehicles through either cooperative purchase agreements established by another public agency (pursuant to Santa Clara City Code Section 2.105.270) or by conducting its own competitive solicitation utilizing vehicle specifications developed with the City departments (pursuant to Santa Clara City Code Section 2.140).
Section 2.105.300(a) of the Santa Clara City Code authorizes the City Manager to execute purchase orders and agreements on behalf of the City in amounts up to and including $250,000. Purchases of vehicles and equipment from a single vendor over $250,000 require approval by the City Council.
DISCUSSION
Vehicle purchase costs are included in the approved Fiscal Year 2022/23 budget and each department has confirmed the need to acquire them to either replace aged vehicles with increased maintenance costs or new demands. Purchase orders for the vehicles listed below need to be opened to secure the purchase price of each asset. Purchase prices for vehicles and equipment have significantly outpaced previous inflation projections so it is important to secure pricing quickly to avoid potential increases. Each will result in a purchase price of over $250,000 to specific vendors which requires City Council approval.
• Golden State Fire Apparatus: estimated purchase price of $2,141,000 - one tiller truck (Fire Department)
• Altec Industries, Inc.: estimated purchase price of $601,000 - one digger derrick (Silicon Valley Power) and $322,000 - one aerial bucket truck (DPW)
• MME Municipal Maintenance Equipment: estimated purchase price of $415,000 - one street sweeper (DPW)
• National Auto Fleet Group: estimated aggregate purchase price of $796,000 - two replacement crew trucks (Water & Sewer Utilities Department)
Approval of the recommendation will enable DPW to avoid any potential delays in procuring replacement vehicles. DPW will coordinate with the Purchasing Division to ensure that vehicle purchases are consistent with the City’s established purchasing policies.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(2) because the purchase of vehicles and equipment is not considered a project.
FISCAL IMPACT
The combined total to purchase the tiller truck, digger derrick, aerial bucket truck, street sweeper and two crew trucks is estimated to be $4,275,000. The funding for the purchase of these vehicles has already been approved in the FY 2022/23 Operating Budget Vehicle Replacement Fund. If approved by the City Council, funds may be encumbered or carried over into FY 2023/24 to complete the purchases.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
Approve and authorize the City Manager to execute purchase orders in amounts greater than $250,000, at an aggregate amount of $4,275,000, with various vendors for the purchase of vehicles and equipment presented for the Fire, Silicon Valley Power, Public Works and Water and Sewer Utilities Departments, to be funded by amounts previously approved in the Vehicle Replacement Fund in the City’s Operating Budget for Fiscal Year 2022/23.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jōvan D. Grogan, City Manager