REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department BY: CLIFF TRAUGH, Administrative Manager General Services Department SZARINA LOZANO, Management Analyst II General Services Department SUBJECT ..Title Award a requirements contract for automotive, heavy-duty, and construction equipment batteries for the municipal fleet to Motive Energy, LLC of Fresno, California, for three years with three, one-year optional extensions, for a total contract amount of $397,532, plus annual CPI adjustments ..Body RECOMMENDATION Staff recommends Council award a requirements contract for automotive, heavy-duty, and construction equipment batteries for the municipal fleet to Motive Energy, LLC of Fresno, California, for three years with three, one-year optional extensions, for a total contract amount of $397,532, plus annual CPI adjustments. EXECUTIVE SUMMARY The General Services Department, Fleet Management Division, is seeking to establish a requirements contract with Motive Energy, LLC of Fresno, California for the purchase of automotive, heavy duty, and construction equipment batteries. A requirements contract will allow the Fleet Management Division to continue to supply batteries to all municipal fleet vehicles and equipment. Readily available parts are essential to the work of the Fleet Management Division, increasing the reliability and readiness of the municipal fleet. The Fleet Management Division intends to purchase the necessary products through a competitively bid requirements contract approved by the Purchasing Division. BACKGROUND The General Services Department, Fleet Management Division is responsible for maintaining approximately 2,600 active vehicles and equipment for the City of Fresno. This is done by scheduling and performing preventative maintenance, identifying repairs, and replacing equipment in a timely manner. In the municipal fleet, batteries power electrical systems, support auxiliary functions and start vehicles and equipment such as power generators, sedans, pick-up trucks, first responder vehicles, and specialty vehicles like street sweepers and refuse trucks. Establishing a requirements contract for automotive, heavy duty and construction equipment batteries will keep prices stable and allow for consistent budgeting for the term of the contract. Competitive bids were solicited for automotive, heavy duty and construction equipment batteries on May 12, 2023. Four bids were publicly opened on June 6, 2023, and Motive Energy, LLC was determined to be the lowest responsive bidder with a three-year price of $198,765.55. Factoring in the potential three one-year extensions, this increases to a total of $397,532 over the life of the contract, plus annual CPI adjustments. The Purchasing Division has approved this contract and recommends Council approval. The City Attorney has approved the contract as to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a "project"; therefore, it is exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference is applicable to this award and Motive Energy, LLC of Fresno, California is a local business pursuant to FMC 4-108. FISCAL IMPACT No general funds will be used to purchase these items. The funding to cover the purchase cost of automotive, heavy duty, and construction equipment batteries has been included in the FY2024 adopted budget under the operations of the Fleet Management Division. Attachments: Bid evaluation