HomeMy WebLinkAboutStaff Report 2309-20046.Adoption of a Resolution Authorizing the City Manager to Negotiate and Execute
Purchase Orders with a To-Be Determined Vendor(s) to Procure Thirteen (13) New Fully
Electric Sedans And Five (5) New Fully Electric Vans for a One Time Purchase for a Total
Not-To-Exceed Amount of $985,000. CEQA Status - exempt under CEQA Guidelines
Section 15061.
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: November 13, 2023
Report #:2309-2004
TITLE
Adoption of a Resolution Authorizing the City Manager to Negotiate and Execute Purchase
Orders with a To-Be Determined Vendor(s) to Procure Thirteen (13) New Fully Electric Sedans
And Five (5) New Fully Electric Vans for a One Time Purchase for a Total Not-To-Exceed Amount
of $985,000. CEQA Status - exempt under CEQA Guidelines Section 15061.
RECOMMENDATION
Staff recommends that Council adopt a resolution to authorize the City Manager or their
designee to:
1. Negotiate and execute a purchase order(s) with a to-be-determined vendor(s) in an
amount not to exceed $585,000 for the purchase of 13 new fully electric sedans; and
2. Negotiate and execute a purchase order(s) in an amount not to exceed $400,000 with a
to-be-determined vendor(s) for the purchase of 5 new fully electric vans.
BACKGROUND
The Vehicle and Equipment Use, Maintenance, and Replacement policy section 4-01 provides
for the on-going replacement of City fleet vehicles and equipment. Replacements are scheduled
using guidelines based on age, mileage accumulation, and obsolescence. Policy 4-01 prescribes
a replacement interval of 10 years/100,000 miles for compact sedans and vans.
Over the last several years, the City has experienced lack of availability, increased pricing, and
minimal ordering windows due to supply chain constraints in the auto industry that have
impeded efforts to replace vehicles in a timely manner. Ordering windows have often closed
faster than staff is able to bring a purchase order to Council for approval. This report
recommends that Council adopt a resolution (Attachment A) delegating the final purchase
approval of 18 vehicles included in the Fiscal Year 2024 replacement plan to the City Manager,
as provided for in Palo Alto Municipal Code (PAMC) sections 2.30.250 and 2.30.295 (b), in the
interest of efficient and expedited purchases that align with the goals and objectives of the
Council and City policy.
For Fiscal Year 2024, Council approved an all-electric vehicle replacement program, with the
exception of Police pursuit-rated vehicles. With the purchase of these replacement vehicles, the
City’s electric vehicle fleet will increase from 14 to 32 vehicles.
ANALYSIS
Project Description
The City’s fleet includes 13 Compressed Natural Gas (CNG) Honda Civics that meet or exceed
the City’s replacement criteria and that are programmed for replacement in Fiscal Year 2024.
The vehicles are assigned to multiple divisions, with eight of these vehicles designated as
shared use vehicles for the Community Services, Public Works, and Fire Departments. Two
vehicles are assigned to the Planning and Development Services Department for code
enforcement and building inspections, and three are assigned to the Fire Department for fire
inspections.
The fleet includes five (5) Ford E-350 cargo vans that meet or exceed the City’s replacement
criteria and that are programmed for replacement in Fiscal Year 2024. Two have CNG engines
and three have gasoline engines. Two vehicles are assigned to the Public Works Department
and three are assigned to the Utilities Department.
Procurement Process
Staff plans to follow the City’s procurement regulations as outlined in the PAMC. Processes
authorized may utilize a cooperative purchasing agreement, such as Sourcewell, in lieu of
conducting competitive solicitations, allowed under PAMC section 2.30.360 (j), and/or may
include formal solicitations as would otherwise be required by PAMC section 2.30.310 (b). A
solicitation was conducted for the purchase of thirteen (13) 2023 Chevrolet Bolt EUV vehicles. A
single bid received was for an amount below the $585,000 authority staff is requesting and staff
is following the process to develop a purchase order for the vehicles. However, staff has not
conducted a solicitation for the purchase of five (5) fully electric vans and the procurement
method for the vans has not yet been determined. The open period window is often short so
this delegation to the City Manager allows staff to move quickly with the dealer to secure the
vehicles whether through bidding or a cooperative purchasing agreement process.
FISCAL/RESOURCE IMPACT
Funding was approved for the purchase of these 18 vehicles in the Vehicle Replacement Fund
Scheduled Vehicle and Equipment Replacement – Fiscal Year 2024 project (VR-24000). $45,000
was budgeted for the replacement of each Honda Civic, and $80,000 was budgeted for the
replacement of each Ford van, for a total budgeted amount of $985,000.
STAKEHOLDER ENGAGEMENT
Requests for vehicle replacements are presented to the Fleet Review Committee (FRC) for
approval during the development of the proposed budget and any deviation from these plans is
also reviewed by the Committee. The FRC is comprised of executive leadership representatives
from the Public Works and Administrative Services Departments and the City Manager’s Office.
Additionally, Fleet staff review proposed vehicle replacements with the departments using the
vehicles.
ENVIRONMENTAL REVIEW
Vehicle purchases are exempt from the California Environmental Quality Act under CEQA
guidelines (Section 15061).
ATTACHMENTS
Attachment A: Resolution for City Manager to Procure Electric Vehicles
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
NOT YET APPROVED
0007_20230519
Resolution No. ____
A Resolution of the City Council for the City of Palo Alto
Authorizing the City Manager to Negotiate and Execute
Purchase Orders with To- Be Determined Vendor(s) to Procure
Thirteen (13) new Fully Electric Sedans and Five (5) new Fully
Electric vans for a one-time Purchase with a Total Not-To-
Exceed Amount of $985,000
R E C I T A L S
A. The Vehicle and Equipment Use, Maintenance, and Replacement, Policy 4-01, provides
for the on-going replacement of City fleet vehicles and equipment, and prescribes a
replacement interval of 10 years/100,000 miles for compact sedans and vans.
B. The City’s current fleet includes thirteen Compressed Natural Gas (CNG) Honda Civics
that meet or exceed the City’s replacement criteria and are scheduled for replacement
in Fiscal Year 2024. These vehicles are assigned to multiple divisions, with eight
designated as shared-use vehicles for the Community Services, Public Works, and Fire
Departments. Two vehicles are assigned to the Planning and Development Services
Department for code enforcement and building inspections, and three are assigned to
the Fire Department for fire inspections.
C. The fleet also includes five Ford E-350 cargo vans that meet or exceed the City’s
replacement criteria and are scheduled for replacement in Fiscal Year 2024. Two vans
have CNG engines and three have gasoline engines. Two vehicles are assigned to the
Public Works department and three are assigned to the Utilities Department.
D. Over the last several years the City has experienced lack of availability, increased pricing,
and minimal ordering windows due to supply chain constraints in the auto industry that
have impeded efforts to replace vehicles in a timely manner.
E. Delegating the final purchase approval of the vehicles above to the City Manager, as
permitted under the Municipal Code, will allow the City to purchase these vehicles
efficiently and expeditiously in alignment with the goals and objectives of the Council
and City policy.
NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The City Manager or their designee is hereby authorized to negotiate and
execute purchase orders with vendors, yet to be determined, to procure thirteen (13) new fully
electric sedans and five (5) new fully electric vans, in an amount not to exceed $985,000.
SECTION 2. The Council finds that the adoption of this resolution not a project under the
California Environmental Quality Act (CEQA) Guidelines 15378(b)(5) because it is an
NOT YET APPROVED
0007_20230519
organizational or administrative activity that will not result in direct or indirect physical changes
in the environment and thus, an environmental assessment under CEQA is not required.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ _____________________________
Assistant City Attorney City Manager
_____________________________
Director of Public Works
_____________________________
Director of Administrative Services