REPORT TO THE CITY COUNCIL August 31, 2017 FROM: BRUCE A. RUDD, Assistant City Manager/Interim Director Department of Transportation BY: JIM SCHAAD, Assistant Director Department of Transportation DUANE MYERS, Fleet Manager Department of Transportation, Fleet Management Division CLIFF TRAUGH, Sr. Management Analyst Department of Transportation, Fleet Management Division SUBJECT ..Title Actions related to purchasing vehicles for the Development and Resources Management Department: 1. Approve the award of a purchase agreement to Swanson Farney Ford of Selma, California, for the purchase of 24 Ford F-150 regular cab, short bed, pickups, in the amount of $542,250.45 2. Approve the option to purchase up to 40 additional F-150 pickups at this same unit price through March 30, 2018 ..Body RECOMMENDATION Staff recommends Council approve the award of a purchase contract to Swanson Farney Ford of Selma, California, for the purchase of 24 new Ford F-150 regular cab, short bed, pickups in the amount of $542,250.45, and approve the option to purchase up to 40 additional F-150 pickups at this same unit price through March 30, 2018, and authorize the Director of Transportation or designee to execute all related documents. EXECUTIVE SUMMARY The Development and Resource Management Department would like to lease-purchase 24 new Ford F-150 pickups to mobilize its growing workforce. The new trucks will be additions to the fleet, purchased through the competitive bidding process following the procedures as outlined by the Purchasing Division. The Department of Transportation is also requesting the approval to use this contract to continue purchasing Ford F-150 pickups at $20,925 per unit, up to an additional 40 units as needed, through March 30, 2018, contingent upon FY18 appropriations. BACKGROUND The goal of the City Neighborhood Services program is to improve property values, living conditions, and the overall quality of life in Fresno's older neighborhoods. The Neighborhood Services program consists of Code Enforcement, Community Revitalization, and Rental Housing. These programs work together to protect, preserve, and promote established neighborhoods in Fresno. These objectives are achieved through enhanced enforcement of codes, incentives, and partnerships with the community. On February 2, 2017, Mayor Brand introduced the Rental Housing Improvement Act to continue the work of the Mayor-Council Code Enforcement Task Force and implement the Restore Fresno initiative. Restore Fresno, "neighborhood revitalization", targets specific neighborhoods and completes a property-by-property analysis identifying violations, and matches residents with applicable resources to improve their properties, and overall quality of life. The Rental Housing Improvement Act is an extension of the Anti-Slumlord Enforcement Team (ASET) and includes provisions to create a new Rental Housing Division within DARM. These growing teams require vehicles to mobilize. The new Rental Housing Division requires six trucks, the Proactive Rental Housing division requires eleven trucks, and the Neighborhood Revitalization team requires seven trucks. These trucks will allow the new teams to travel to the selected neighborhoods on a property by property basis. Each team member will be assigned a truck, giving inspectors the ability to cover a large area each day. The employees will need to carry with them inspection tools, as well as basic equipment to do their jobs. The selected F-150 regular cab, short bed pickup, gives the employee the space and functionality required to do the job and is small enough to maneuver in and out of Fresno's smaller streets and alley ways. Competitive bids were solicited for the 24 F-150 pickups on July 11, 2017. One bid was received, and Swansen Farney Ford was determined to be responsive with a bid price of $542,250.45. In addition to the bid for 24 units, an option has been included in the purchase contract allowing the City of Fresno to continue to purchase F-150 pickups at this same price up to an additional 40 units, expiring on March 30, 2018. This option will allow the City of Fresno to continue to purchase fleet standard F-150 pickups at $20,925 per unit as needed, contingent upon FY18 appropriations. The 24 trucks will be purchased using the City Master Equipment Lease Purchase Agreement (MELPA) with Banc of America Public Funding Corporation, and payments are included in the FY18 .Adopted Budget. The MELPA allows the City to expedite financing of certain equipment that is approved for purchase and financing where competitive procurement, budgeting, and appropriation requirements are completed. ENVIRONMENTAL FINDING By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a "project." LOCAL PREFERENCE Local preference was not applied because the City received one bid on this product purchase contract. FISCAL IMPACT The appropriations for FY18 lease payments on the 24 units in this agenda item have been approved in the FY18 Budget. Attachment: Bid Proposal