Placement: Consent Agenda
Action Requested: Motion / Vote
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Approve Extension of the Alternative Vehicle Purchasing Plan for an Additional Fiscal Year.
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Submitted By: Nathaniel Rubel, Procurement Assistant Director, Procurement Management Division (PMD).
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): Due to persisting supply chain issues in the automotive industry, extension of the alternate vehicle purchasing plan approved by Council last year is being requested for an additional fiscal year.
Presentation Information: N/A.
Staff Recommendation: Move that the Council waive the bidding, per City Code of Ordinances, Section 35.08(c), good cause shown, and approve extension of the Vehicle Purchasing Plan for an additional fiscal year (FY 24/25).
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve extension of the Vehicle Purchasing Plan as amended.
2. Move that the Council not approve and/or provide staff with direction.
Background: Since the supply chain interruptions of 2020, the purchase and acquisition of vehicles has provided unprecedented challenges. Lead times and availability for new vehicles were at an all-time low approximately two years ago. Delivery timelines surged to nearly a year from order to delivery, and the windows to order vehicles has shrunk to merely weeks, and in some instances, only days. In an effort to blunt some of the delays and inability to place orders for vehicles, Facilities and PMD submitted a Vehicle Purchase Plan that was approved by Council last year. This plan allowed for the ordering of vehicles with local (first priority) and statewide dealerships outside of the current approved contracts. This plan made available in-stock inventory that would have been inaccessible for purchase due to a lengthier formal purchasing process. In order to assure fair pricing, the plan also notes that vehicles purchased outside of current approved contracts would have to be priced within 10% of contract pricing.
Issues/Analysis: The Vehicle Purchase Plan has been a success and an effective tool that has eased the sourcing issues of the Departments. Several dozen vehicles have been approved for purchase through this Plan for numerous City Departments. The current new vehicle market has made some recovery, and order availability windows are almost back to pre-2020 lengths. However, lead times are still elevated with most built to order passenger trucks and cars taking 6 months for delivery from date of order. While there have been observed improvements in the automotive industry, it is Staff’s recommendation to extend the Vehicle Purchase Plan for another Fiscal Year. This will continue to allow City departments to have the flexibility to strategically source vehicles. An extension of this plan will also allow the City the means to better react and maneuver through unforeseen automotive industry issues that are expected to persist into the near future.
Financial Information: Budgeted funds for vehicle purchases will be utilized.
Special Consideration: N/A.
Location of Project: N/A.
Attachments: Vehicle Purchasing Plan Memo.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 24278-01.
Legal Sufficiency Review:
Reviewed by Alyssa Lunin, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.