SR 12-19-2023 5B
City Council
Report
City Council Meeting: December 19, 2023
Agenda Item: 5.B
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Fleet Services
Subject: Authorization to Execute Agreements with Altec Industries, National Auto
Fleet Group, and Folsom Lake Ford to Purchase City Vehicles
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15302
(Replacement or Reconstruction) of the California Environmental Quality Act
(CEQA) guidelines.
2. Authorize the City Manager to negotiate and execute an agreement with Altec
Industries for the purchase of 5 vehicles and equipment for the Public Works
Department. This recommended award is made as an exception to the
competitive bidding process pursuant to Section 2.24.250 (c) and is for a total
amount not to exceed $1,488,984, including a 10% contingency, over a five-year
period, with future year funding contingent on Council budget approval.
3. Authorize the City Manager to negotiate and execute an agreement with National
Auto Fleet Group for the purchase of 217 vehicles and equipment for the Public
Works Department. This recommended award is made as an exception to the
competitive bidding process pursuant to Section 2.24.250 (c) and is for a total
amount not to exceed $19,850,627, including a 10% contingency, over a five-
year period, with future year funding contingent on Council budget approval.
4. Authorize the City Manager to negotiate and execute an agreement with Folsom
Lake Ford for the purchase of 53 vehicles and equipment for the Public Works
Department. This recommended award is made as an exception to the
competitive bidding process pursuant to Section 2.24.250 (c) and is for a total
amount not to exceed $4,013,246, including a 10% contingency, over a five-year
period, with future year funding contingent on Council budget approval.
Summary
City of Santa Monica staff provide essential services that maintain clean and safe
neighborhoods and open spaces for the Santa Monica community. Several City
department operations rely on vehicles and equipment managed and maintained by the
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Fleet Management Division. Many of these vehicles are aging past their cost -effective
useful lives. To ensure reliable operations, to provide uninterrupted services to the
community, to reduce downtime and maintenance costs, and to adjust to the current
market conditions associated with supply chain constraints with all major vehicle
manufacturers, staff recommends entering into agreements with three vendors to
purchase 275 vehicles and equipment over the next five years in an amount not to
exceed $25,352,857 (including a 10% contingency) based on competitive contract
pricing available to government agencies.
Discussion
The Fleet Management Division is responsible for ensuring the City’s diverse fleet of
over 800 vehicles are available, dependable, meet the highest environmental standards
for a sustainable fleet, and are safe to operate from acquisition through disposal. The
division routinely replaces vehicles that have reached the end of their cost-effective
useful lives through the Vehicle Management Fund. These vehicles are vital to essential
operations and Fleet Management Division works together with each City division to
extend the useful lives of their vehicles as much as possible. Many of these vehicles
and equipment have or will have reached their cost -effective useful life at their
scheduled replacement year, some incurring maintenance costs of approximately 50%
of the original purchase cost over the last two years. Due to their age and use, these
vehicles require significant ongoing maintenance and repair costs to remain reliable,
safe, and operational.
In response to the budgetary impacts of the COVID-19 pandemic, contributions to the
Vehicle Management Fund were suspended for the Beach Fund and the General Fund.
The General Fund contributes a majority of the funding for the Vehicle Management
Fund. As a result, vehicle replacements were temporarily suspended unless they were
necessary for public safety or for the operation of essential City services. As we
continue to recover from the impacts of the COVID-19 pandemic, Fleet Management
has begun to ramp up the replacement of city vehicles.
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Current economic challenges with all major vehicle manufacturers, including a high
demand for vehicles, limited vehicle availability, and long lead times, have impacted the
City’s ability to promptly replace vehicles when they have reached the end of their cost-
effective useful life. For example, Ford releases various ordering timelines per model
year annually and provides dates for when they will accept orders (ordering windows).
The ordering windows are extremely brief due to supply chain constraints and more so
due to recent United Auto Workers (UAE) strikes. Recently, Ford has required an
executed agreement or purchase order before they will accept an order. This new
requirement has hindered the City’s success in fulfilling current and future vehicle
replacements due to the City’s procurement process to obtain an agreement or
purchase order. This process can be protracted further if City Council authorization is
required.
Given these factors, as well as the average delivery time of up to two years for some
vehicles, it would benefit the City to proactively obtain authorization for the procurement
and replacement of these vehicles before the ordering windows open, and to align with
new auto manufacturer requirements.
Without advanced procurement authority, vehicle orders would miss the ordering
windows and staff would be forced to keep some vehicles past their cost-effective useful
life and subsequently incur higher breakdown and maintenance costs. This would result
in negative impacts to essential services provided to the Santa Monica community.
Staff have identified 275 vehicles and equipment that will be due for replacement within
the next five years, including those delayed during the temporary replacement
suspension. If the procurement authority is approved ahead of time, it would place the
City in a more competitive position when manufacturers begin to accept orders for each
year and would ensure the timeline for replacement is not extended any further past the
cost-effective useful life of the vehicles. These essential vehicles are key to public
safety, maintaining our open spaces, and supporting the City Council’s priority of a
Clean and Safe Santa Monica.
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Staff is recommending the purchase of these 275 vehicles and equipment over the next
five years for a total amount not to exceed $25,352,857, including a 10% contingency,
as itemized in Table 1. Funding for the replacement of past due vehicles and FY 2023 -
24 vehicles is currently available and has been collected over each asset’s useful life.
Future vehicle replacement funding has and will continue to be collected for each
vehicle through its replacement year.
Table 1 – Quantity and Estimated Cost of Vehicles by Fund Source
Fund Quantity Total
Airport 1 $78,761
Beach Rec. 5 $401,162
Cemetery 2 $122,793
General 231 $19,808,361
RRR 13 $1,675,725
Risk 1 $70,368
Wastewater 5 $394,917
Water 17 $2,800,770
Total 275 $25,352,857
These 275 vehicles and equipment are crucial to City operations. As seen in Figure 1,
49% of these vehicles will support departments that provide public safety services
(Police Department and Fire Department) and 42% of these vehicles will support
departments that provide essential services to Santa Monica residents, visitors,
businesses, and staff (Public Works Department).
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Vendor Selection
Exception to Competitive Bidding
Staff recommends: 1) Altec Industries, a distributor of Public Utility Equipment with
Related Accessories and Supplies, to furnish and deliver 5 vehicles and; 2) National
Auto Fleet Group, a distributor of Class 4-8 Chassis with Related Equipment,
Accessories, and Services, to furnish and deliver 217 Class 4-8 vehicles, trucks, and
equipment and; 3) Folsom Lake Ford, a distributer of Enforcement Vehicles, Police
Pursuit - Ford Explorer V6 AWD & Ford Explorer V6 AWD - HEV, to furnish and deliver
53 utility vehicles as an exception to competitive bidding under Santa Monica Municipal
Code Section 2.24.250 (c): “Competitive procedures were followed by a governmental
agency, federal, state, county, city, joint powers agency, special district, or cooperative
purchasing agency and the goods or services are supplied to the City at the same or
better price.”
On September 16, 2021, Sourcewell issued an RFP for Public Utility Equipment with
Related Accessories and Supplies. Under the terms of the RFP, and the resulting
Sourcewell Agreement with Altec Industries, similar nationally leveraged purchasing
discounts are also available to other government agencies. Sourcewell Agreement
#110421-ALT was established on January 12, 2022, expires December 27, 2025, and
has one one-year renewal option.
On September 30, 2021, the California Department of General Services issued a
Request for Proposals (RFP) for a Midsize Utility Vehicle, Law Enforcement High
Speed Vehicle Police Pursuit. Under the terms of the RFP, and the resulting Statewide
Contract Agreement with Folsom Lake Ford, similar nationally leveraged purchasing
discounts are also available to other government agencies. Statewide Contract
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Agreement # 1-22-23-14C was established on May 11, 2022, expires May 10, 2025.
On April 16, 2020, Sourcewell issued an RFP for Class 4-8 chassis with related
equipment. Under the terms of the RFP, and the resulting Sourcewell Agreement with
National Auto Fleet Group, similar nationally leveraged purchasing discounts are also
available to other government agencies. Sourcewell Agreement #060920 -NAF was
established on August 3, 2020, expires August 1, 2024, and has one one -year renewal
option.
Sourcewell and The California Department of General Services are cooperative
purchasing agencies that serve government, education, and nonprofit organizations.
As cooperative purchasing agencies, they acquire goods or services by aggregating
the demand of two or more entities in an effort to obtain more economical pricing. The
cooperative agreements are set to expire prior to the City’s recommended five-year
agreement term, but staff anticipates the contracts will be renewed and the term will be
extended. If the cooperative agreements are not renewed, staff would return to Council
for authority with the new awarded vendor, if different than the current vendors.
c. competitive procedures were followed by a governmental agency, federal, state,
county, city, joint powers agency, special district, or cooperative purchasing agency
and the goods or services are supplied to the City at the same or better price .
Environmental Review
The purchase orders for replacement vehicles are categorically exempt from CEQA
pursuant to Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines.
Section 15302 exempts Class 2 projects which “consists of replacement or
reconstruction of existing structures and facilities where the new structure will be
located on the same site as the structure replaced and will have substantially the same
purpose and capacity as the structure replaced”. The replacement vehicles would
replace existing City fleet vehicles, with essentially the same purpose and capacity.
Therefore, the purchase orders are categorically exempt from CEQA pursuant to
Section 15302.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Vehicle Management Fund
to award agreements with the vendors below for the purchase and delivery of 275
vehicles and equipment for a total amount not to exceed $25,352,857 over five years.
Agreement Request – Altec Industries – 5 Vehicles
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FY 2023-24 Request
Amount
CIP Account # Future Years
Amount
Total Amount
$0 C7000010.689000 $1,488,984 $1,488,984
$0 $1,488,984 $1,488,984
Agreement Request – National Auto Fleet Group – 217 Vehicles
FY 2023-24 Request
Amount
CIP Account # Future Years
Amount
Total Amount
$5,287,012 C7000010.689000 $14,563,615 $19,850,627
$5,287,012 $14,563,615 $19,850,627
Agreement Request – Folsom Lake Ford – 53 Vehicles
FY 2023-24 Request
Amount
CIP Account # Future Years
Amount
Total Amount
$225,332 C7000010.689000 $3,787,914 $4,013,246
$225,332 $3,787,914 $4,013,246
Future year funding is contingent on Council budget approval.
Prepared By: Doris Mejia, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Oaks Initiative Form - NAFG
B. Oaks Initiative Form - Folsom Lake Ford
C. Oaks_Altec Industries
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5.B.a
Packet Pg. 192 Attachment: Oaks Initiative Form - NAFG (5936 : Authorization of Agreements to Purchase Vehicles with Altec, NAFG, and Folsom Lake
5.B.a
Packet Pg. 193 Attachment: Oaks Initiative Form - NAFG (5936 : Authorization of Agreements to Purchase Vehicles with Altec, NAFG, and Folsom Lake
5.B.b
Packet Pg. 194 Attachment: Oaks Initiative Form - Folsom Lake Ford [Revision 1] (5936 : Authorization of Agreements to Purchase Vehicles with Altec, NAFG,
5.B.c
Packet Pg. 195 Attachment: Oaks_Altec Industries [Revision 1] (5936 : Authorization of Agreements to Purchase Vehicles with Altec, NAFG, and Folsom Lake
5.B.c
Packet Pg. 196 Attachment: Oaks_Altec Industries [Revision 1] (5936 : Authorization of Agreements to Purchase Vehicles with Altec, NAFG, and Folsom Lake