REPORT TO THE CITY COUNCIL FROM: JOE VARGAS, Director Department of Transportation BY: BRIAN BARR, Assistant Director Department of Transportation SUBJECT ..Title Approve the award of a purchase contract to Swanson Fahrney Ford, of Selma, California, for the purchase of 97 Ford vehicles for Department of Public Utilities, Department of Public Works, Department of Transportation, Airports Department, Planning and Development, Police Department, and Animal Center in the amount of $4,139,218 (Bid File 3874) ..Body RECOMMENDATION Staff recommends Council approve the award of a purchase contract to Swanson Fahrney Ford, of Selma, California, for the purchase of 97 Ford vehicles for Department of Public Utilities, Department of Public Works, Department of Transportation, Airports Department, Planning and Development, Police Department, and Animal Center in the amount of $4,139,218. EXECUTIVE SUMMARY Department of Public Utilities (DPU), Department of Public Works (DPW), Department of Transportation (FAX), Airports Department (FYI), Planning and Development (P&D), Police Department (FPD), and Animal Center are requesting approval to purchase 97 Ford vehicles to replace and grow their respective fleets. These units will be utilized as service trucks, pickups, and SUVs for transport to jobsites. Of the 97 total vehicles, DPU is requesting 31 vehicles, DPW is requesting 38 vehicles, FAX is requesting one vehicle, FYI is requesting five vehicles, P&D is requesting 15 vehicles, FPD is requesting four vehicles, and Animal Center is requesting three vehicles. Of the requested units, 56 will serve as replacements and 41 will be additions used to meet the needs of growing staff and projects. The 97 Ford vehicles will be purchased through a competitive bidding procurement process and will be funded by the adopted FY2022 budget. The Municipal Fleet Division has specified the maximum number of hybrid vehicles based upon the vehicle needs of the various departments. This totals 15 hybrid vehicles and includes Escape SUVs, Mavericks, and F-150 crew cabs trucks. No additional hybrids or zero emission vehicles could be specified as the configurations were not available from the manufacturer on the remaining vehicle types. Moreover, the Ford electric F-150 Lighting is currently not available for order. The Municipal Fleet Division and Purchasing Division contacted the Central California New Car Dealer Association (CCNCDA) and dealerships located within the city of Fresno limits to gain interest, however no dealerships located with the city of Fresno submitted a bid. One CCNCDA affiliated dealership located in Clovis submitted a bid, however, was invalid as a bid deposit was not included. BACKGROUND In an effort to save both time and resources, the Department of Transportation, Municipal Fleet Division has combined its light equipment needs into one procurement project. This strategy saves administrative resources through multiple departments. DPU, DPW, FAX, FYI, P&D, FPD, and Animal Center will utilize this contract to purchase both replacement and additional vehicles to meet the needs of their operations. Due to continuing supply chain constraints caused by COVID-19, the automotive industry is struggling to supply vehicles at a steady rate. This has caused prices to increase across all manufactures in a short amount of time. According to U.S. Consumer Price Index (CPI) for new cars and trucks, prices increased by 12.4% between February 2021 and March 2022. The original budgetary costing for these vehicles was prepared in February of 2021, prior to the sharp escalation in vehicle prices. As a result, the lowest responsive bid received is 11% over budget consistent with the CPI. Existing appropriations combined with savings from other Municipal Fleet Division acquisitions from earlier in the Fiscal Year will be used to cover the budget overage. DPU provides service to the residents of Fresno through water delivery, collection of solid waste, and the treatment of wastewater. Each division utilizes vehicles to perform inspections, repair and maintain service systems, and travel to jobsites. DPU is requesting 31 vehicles: 12 F-150's, three F-150 hybrids, 10 F-350's, one F-550, three vans, and two hybrid SUV's to haul small tools, transport personnel, and move equipment for their expanding teams. Of the requested units, 28 will serve as replacements and 3 will be used to meet the needs of growing staff and projects. DPW provides service to the residents of Fresno through the construction and maintenance of roads, streetlights, city owned buildings, and adjacent landscaping throughout the city. To accomplish this, each division utilizes service trucks, vans, and half-ton pickup trucks to meet their daily needs. DPW is requesting 38 vehicles: eight F-150's, two F-150 hybrids, one F-250, 11 F-350's, one F-550, and 15 vans to haul small tools, transport personnel to jobsites, and move equipment as needed. Of the requested units, 14 will serve as replacements and 24 will be used to meet the needs of growing staff and projects. FAX provides service to the residents of Fresno through the continuous operation and maintenance of the FAX transit system, as well as providing municipal fleet services to departments within the City of Fresno. The Municipal Fleet Division is requesting one hybrid Maverick to be utilized as a replacement parts delivery truck. FYI provides service to the residents of Fresno through the continuous operation and maintenance of airport properties. FYI is requesting five vehicles: three F-150 hybrids, one F-250, and one hybrid SUV to haul small tools, transport personnel, and move equipment during their daily operations. Of the requested units, three will serve as replacements and two will be used to meet the needs of growing staff and projects. P&D focuses on both public and private property development throughout the city, as well as the sustainable management of our land and water resources and public infrastructure. Service is provided to the residents of Fresno through the enforcement of municipal code. P&D is requesting 15 vehicles: 12 F-150's, two hybrid Mavericks, and one van. The new vehicles will be used to transport personnel and haul various equipment needed to perform onsite inspections. Of the requested units, 10 will serve as replacements and five will be used to meet the needs of growing staff and projects. FPD is responsible for daily policing operations within the city of Fresno. The overall goal of the Police Department is to maintain the highest level of service while keeping our community safe. To accomplish this goal FPD is requesting four vans to serve as Crime Scene Investigation (CSI) vehicles, upfitted with shelving, emergency lighting, and needed equipment to complete the task. This quantity includes the CSI van that approved in FY2022 Budget Motion 26. These vehicles will be additions to the fleet used to meet the needs of growing staff and projects. The City's Animal Center, through Fresno Humane Animal Services, will provide the legally mandated animal control services within the City of Fresno. Staff has coordinated some of the preliminary vehicle and equipment needs of the Animal Center with input from Fresno Humane Animal Services. At this time, the Animal Center is requesting three vehicles in support of the operations and include: one F-150, one van, and one hybrid SUV to serve as support vehicles, transport animals and move staff and equipment. The Municipal Fleet Division has specified the maximum number of hybrid vehicles based upon the vehicle needs of the various departments. This totals 15 hybrid vehicles and includes Escape SUVs, Mavericks, and F-150 crew cabs trucks. No additional hybrids or zero emission vehicles could be specified as the configurations were not available from the manufacturer on the remaining vehicle types. Moreover, the Ford electric F-150 Lighting is currently not available for order. The light equipment class of vehicles is on a ten year or 100,000-mile replacement schedule which has been established by the Municipal Fleet Division as the optimum replacement time. The units identified for replacement have exceeded their useful life in both time and mileage, therefore the Municipal Fleet Division recommends replacement. Competitive bids were solicited for the 97 Ford vehicles on April 29, 2022, and advertised in the Fresno Business Journal. The Notice Inviting Bids was sent to 4 exchanges and specifications were distributed to 10 potential bidders. Two bids were received on May 24, 2022. The Municipal Fleet Division and Purchasing Division contacted the CCNCDA and dealerships located within the city of Fresno limits to gain interest, however no dealerships located with the city of Fresno submitted a bid. One CCNCDA affiliated dealership located in Clovis submitted a bid, however, was invalid as a bid deposit was not included. Swanson Fahrney Ford was determined to be the lowest responsive and responsible bidder with a total bid price of $4,139,218. This price includes delivery and local sales tax at 8.35 percent. The Purchasing Division has approved this contract and recommends Council to approve. The City Attorney's Office has reviewed and approved to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a "project" as defined by CEQA. LOCAL PREFERENCE Local preference is applicable to this award, and Swanson Fahrney Ford, of Selma, CA is a local business pursuant to FMC 4-108. FISCAL IMPACT The funding to cover the purchase cost of the 97 Ford vehicles has been included in the FY2022 Adopted Budget under the operations of DPU, DPW, FAX, FYI, P&D, and FPD. Appropriations for the Animal Center are also included in the FY2022 Adopted Budget in the General Fund under the General City Purpose Department. Of the 97 units, 16 vehicles will be lease financed and paid for over a five-year term. The lease payment schedule is included in the annual budget request for appropriations. The balance of vehicles will be an outright purchase. A list of funding sources with unit quantities and total budgeted dollars is provided in Exhibit A. Due to continuing supply chain constraints caused by COVID-19, the automotive industry is struggling to supply vehicles at a steady rate. This has caused prices to increase across all manufactures in a short amount of time. The original budgetary costing for these vehicles was prepared in February of 2021, prior to the sharp escalation in vehicle prices. Due to these global economic conditions, the lowest responsive bid is 11% over budget. Existing appropriations combined with savings from other Municipal Fleet Division acquisitions from earlier in the Fiscal Year will be used to cover the budget overage. Attachments: Bid Evaluation 3874 Exhibit A Funding Sources