Title
Recommendation to Authorize a Price Adjustment of $7,519 for a Previously Authorized Purchase of Three Hybrid Toyota RAV4s from Freeway Toyota for a Total Amount Not to Exceed $101,741. (Public Works 60141581)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
On Sept 7, 2021, City Council approved the purchase of three Hybrid Toyota RAV4s from Freeway Toyota. This light duty vehicle was selected for City of Alameda (City) Building Inspections because it is all-wheel drive and has good ground clearance, both important attributes during emergency response. The City Council approved purchase price was $93,377. Due to automotive shortages, the order was not filled with 2022 models. The 2023 models are now available with an 8% increase in cost. The new quoted price from Freeway Toyota, who holds the State of California contract for these vehicles, is $101,741 (Exhibit 1), an increase of $7,519. Staff seeks approval to purchase the previously approved replacement light duty vehicles for building inspections from Freeway Toyota in an amount not-to-exceed $101,741. No new appropriation is needed to cover this price change.
BACKGROUND
On November 5, 2019, the staff brought to City Council a revised Administrative Policy and Procedure Number 48, Vehicle and Equipment Replacement Policy (Fleet Replacement Policy). The Fleet Replacement Policy is consistent with the City’s recently adopted Climate Action and Resiliency Plan and emphasizes greenhouse gas (GHG) emission reductions. The revised policy includes a focus on right-sizing the City fleet, the purchase of electric vehicles when feasible, and lowering the fleet’s GHG emissions through the acquisition of low emission vehicles. In June 2020, the City Council adopted the Fiscal Year (FY) 2020-21 and 2021-22 budget, which included funds for the replacement of fleet vehicles.
In accordance with City Administrative Instruction Number 5 (Purchasing Policy), vehicles may be purchased by piggybacking on another agency’s purchase agreement or through cooperative purchasing. The Purchasing Policy states that the City Council must approve an award of vehicle purchases to a single vendor made through either piggybacking or cooperative purchasing in excess of a cumulative total of $75,000 in any given fiscal year.
DISCUSSION
On Sept 7, 2021, City Council approved the purchase of three Hybrid Toyota RAV4s from Freeway Toyota. Toyota Freeway holds the State of California contract. These light duty vehicles were selected for City Building Inspections because they are all-wheel drive with good ground clearance, both important attributes during emergency response. The City Council approved purchase price was $93,377. Due to automotive shortages the order was not filled with 2022 models. The 2023 models are now available with an 8% increase in cost. The new quoted price from Freeway Toyota, who holds the State of California contract for these three vehicles, is $101,741 (Exhibit 1), an increase of $7,519. Staff seeks approval to purchase the previously approved replacement light duty vehicles for building inspections from Freeway Toyota in an amount not-to-exceed $101,741. No new appropriation is needed to cover this price change.
ALTERNATIVES
• Authorize the price adjustment for the proposed replacement vehicles.
• Do not authorize the price adjustment for the replacement vehicles. This will not allow the purchase to move forward and will impact Building Inspections as the vehicles currently in use are beyond their useful life and the frequency and cost of maintenance is on the rise.
• Provide a different direction on the purchase of the replacement vehicles.
FINANCIAL IMPACT
Purchase of the replacement vehicles are budgeted in the Fleet Replacement Internal Service Fund (Fund 601) FY 2022-23 budget. No additional budget appropriation is required. There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
The three replacement vehicles are hybrid, which will use significantly less gasoline than the vehicles they are replacing. The recommended replacements will also bring the vehicles up-to-date with State emission standards. Overall, these replacement vehicles are consistent with the City’s goals in the Climate Action and Resiliency Plan and will improve reliability and reduce maintenance costs.
RECOMMENDATION
Authorize a price adjustment of $7,519 for a previously authorized purchase of three hybrid Toyota RAV4s from Freeway Toyota for a total not-to-exceed $101,741.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Carlo Balboni, Fleet Supervisor
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit
1. Freeway Toyota Price Quote RAV4 Hybrid