REPORT TO THE CITY COUNCIL December 14, 2017 FROM: JIM SCHAAD, Director Department of Transportation BY: DUANE MYERS, Fleet Manager Department of Transportation, Fleet Management Division SUBJECT ..Title Approve the award of a three-year purchase contract to Powerstride Batteries of Fresno, California, for the supply of batteries to the Fleet Management Division for $93,309.22 (Bid File 9410) ..Body RECOMMENDATION Staff recommends Council approve the award of a three-year purchase contract to Powerstride Batteries of Fresno, California, for the supply of batteries to the Fleet Management Division in the amount of $93,309.22. EXECUTIVE SUMMARY The Department of Transportation, Fleet Management Division maintains the City of Fresno municipal fleet of 2,100 vehicles and equipment. The purpose of this contract will be to supply batteries on an as needed basis to the fleet for the next three years. The Fleet Management Division intends to purchase the needed products through a competitively bid requirements contract. BACKGROUND The Fleet Management Division is responsible for purchasing and maintaining approximately 2,100 vehicles owned and operated by City departments, including Public Utilities, Public Works, PARCS, etc. Departments utilize a wide range of vehicles such as refuse trucks, street sweepers, sedans, and pickup trucks. Annually, the Fleet Management Division performs 3,900 preventive maintenance jobs and 22,000 repairs, maintains 94 percent vehicle availability. The Fleet Management Division is in need of a contract for the purchase of batteries for the City's fleet. Last year Fleet purchased over 1,000 batteries, ranging from $75 to $200 each. Establishing a competitively bid multi- year contract for the complete range of needed batteries will keep prices low and allow for consistent budgeting for the term of the contract. Competitive bids were solicited for automotive, heavy duty, and construction batteries on July 28, 2017; six bids were received on August 22, 2017, and Powerstride Battery of Fresno, California, was determined to be the lowest responsive bidder with a bid price of $93,309.22. The Purchasing Division has approved this contract and recommends Council approval. 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 implemented; the lowest responsive and responsible bidder is a local business. FISCAL IMPACT Funding for purchase of batteries is included in the FY18 adopted budget for the Department of Transportation, Fleet Management Division. Attachments: Bid Eval 9410 Product Requirements Contract