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Item 5AGENDA ITEM NO.5 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: April 19, 2022 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF PURCHASE OF FLEET VEHICLES USING SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (AQMD) FUNDS RECOMMENDATION: It is recommended that the City Council take the following actions: 1. In accordance with Section 2-333(i)(2) of Division 2 of Article VII of Chapter 2 of the West Covina Municipal Code, and the findings of the West Covina Finance Department/Purchasing Officer, waive the formal bidding procedures and requirements set forth in Section 2-333 of the West Covina Municipal Code in connection with the procurement of eight (8) 2022 Ford Escapes from Performance Ford West Covina (part of National Auto Fleet Group) through Sourcewell Contract # 091521-NAF (expires 11/8/2025). 2. Authorize the purchase of a total of eight (8) 2022 Ford Escapes (UOE) SE Plug-in Hybrid FWD, with amber LED 4 corner strobes vehicles, per specifications, directly from Performance Ford West Covina for a total of $349,952.32 including taxes and fees, using South Coast Air Quality Management District funds. 3. Approve the following resolution: RESOLUTION NO. 2022-30 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2021 AND ENDING JUNE 30, 2022 (PURCHASE OF VEHICLES USING SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (AQMD) FUNDS) BACKGROUND: The Public Services Department — Maintenance Division's Fleet Services Section is responsible for the maintenance and operations of the City's general motor fleet, which includes all vehicles to support the Maintenance Division, Community Services, City Hall Administration, and Community Development, and assists the Police and Fire Departments with their distinctive motor fleets. The City of West Covina receives funds from the State Department of Motor Vehicles through the South Coast Air Quality Management District (AQMD). The funds are provided annually for the purpose of improving air quality through eligible emission reduction programs. Over the past few years, these funds as well as other funding sources have been used by the Fleet Services Section to replace older vehicles in the City's fleet with newer vehicles. AQMD funds are specifically designated to purchase low -emission vehicles that meet the requirements for the use of funds. DISCUSSION: The Fleet Services Section is continuing the process of replacing older vehicles using AQMD funds with environmentally clean cars that will be used throughout the City in various departments. The proposed eight (8) Ford Escape Hybrids will replace vehicles in the Fleet that are no longer operational while others are very close to the end of their life -cycle. The vehicles will be utilized by various departments, including Public Services in the Community Services divisions (to make food deliveries to the seniors within the City), and in the Community Development Department in the Code Enforcement and Planning Divisions. Code Enforcement requires additional vehicles for the additional staff hired and planning requires a vehicle to conduct inspections. Pursuant to Section 2-333(i)(2) of Division 2 of Article VII of Chapter 2 of the West Covina Municipal Code, formal contract procedures may be waived when the successful bidder for a contract with another county, city, special district or other local agency makes the same written bid to the City, and the Purchasing Officer finds that the other local agency originally obtained the bid pursuant to formal contract procedures at least as rigorous as those of the City. The Purchasing Division has verified that the Sourcewell contract with National Auto Fleet Group meets all requirements set forth in Section 2-333(i)(2) of the West Covina Municipal Code and therefore formal contract procedures may be waived. LEGAL REVIEW: The City Attorney's Office has reviewed the resolution and approved it as to form. OPTIONS: The City Council has the following options: 1. Approve Staffs recommendation; or 2. Provide alternative direction. Fiscal Impact FISCAL IMPACT: The purchase of these vehicles was not included in the FY 2021-22 Budget; however, funding is available from the South Coast Air Quality Management District (AQMD) fund which currently has an available fund balance over $500,000. Included with this item is a budget amendment requesting to appropriate these funds. Fund Name Account No. Budget* Amount 119 AQMD 119.80.7008.7170 $350,00 $349,95 Total $350,0001 $349,952 * Pending approval of attached resolution and budget amendment. Attachments Attachment No. 1 - National Auto Fleet Group Quote Attachment No. 2 - Resolution No. 2022-30 (Budget Amendment) CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety Enhance City Image and Effectiveness Achieve Fiscal Sustainability and Financial Stability ATTACHMENT NO. 1 3/1 /22, 9:15 AM Sell, service, and deliver letter i National Auto Fleet Group >� A Olrlilo[ et CM1rrra b[ ar Wo[aa.rl0r 490 Auto Center Drive, Watsonville, CA 95076 (0551 289-6572 [ 1831) 480-8497 Fox F l sett Nati on a l AutoF l e etGro up. com 2/28/2022 3/1/2022 Re -Configured Quote ID: 19743 R2 Order Cut Off Date: TBA Mr David Branconier City of West Covina 1444 West Garvey Ave West Covina, California, 91790 Dear David Branconier, National Auto Fleet Group is pleased to quote the following vehicle(s) for your consideration. Eight (8) New/Unused (2022 Ford Escape (UOE) SE Plug -In Hybrid FWD, Amber LED 4 Corner Strobes & Vehicle Handling Fee $398.00) and delivered to your specified location, each for One Unit One Unit Total % Extended Total (MSRP) Savings Unit's (8) Savings Contract Price $36,405.00 $35,562.90 2.313 $284,503.20 $6,736.80 Amber LED 4 Corner Strobes $4,378.00 $4,378.00 $35,024.00 & Vehicle Handling Fee $398.00 Tax (9.5000 %) $3,794.39 $30,355.12 Tire fee $8.75 $70.00 Total $43.744.04 $349,952.32 - per the attached specifications. This vehicle(s) is available under the Sourcewell Contract 091521-NAF . Please reference this Contract number on all purchase orders to National Auto Fleet Group. Payment terms are Net 20 days after receipt of vehicle. Thank you in advance for your consideration. Should you have any questions, please do not hesitate to call. Sincerely, Jesse Cooper Account Manager Email: Fleet@NationalAutoFleetGroup.com Office: (855) 289-6572 Fox:(831)480 8407 CIE1n101ET Quoting Department Account Manager Fleet@NationalAutoFleetGroup.com (855)289-6572 TOYOTA 0MC https:llw .nationalautofeetgroup.com/OrderRequestISSDPrintil9743?v =true&se=true&ssdType=OuickQuote 3/10 ATTACHMENT NO.2 RESOLUTION NO.2022-30 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING DULY 1, 2021 AND ENDING NNE 30, 2022 (PURCHASE OF VEHICLES USING SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (AQMD) FUNDS) WHEREAS, the City Manager, on or about May 18, 2021, submitted to the City Council a proposed budget for the appropriation and expenditure of funds for the City for West Covina for Fiscal Year 2021-22; and WHEREAS, following duly given notice and prior to budget adoption, the City Council held public meetings, considered and evaluated all comments, and on June 15, 2021 adopted a budget for the fiscal year commencing July 1, 2021 and ending June 30, 2022; and WHEREAS, amendments must periodically be made to the budget to conform to changed circumstances following adoption of the budget. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby approves Budget Amendment No. 48, attached hereto as Exhibit A, related to South Coast Air Quality Management District (AQMD) funds. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall enter the same in the book of original resolutions and it shall become effective immediately. APPROVED AND ADOPTED this 19th day of April, 2022. APPROVED AS TO FORM Thomas P. Duarte City Attorney Dario Castellanos Mayor ATTEST Lisa Sherrick Assistant City Clerk I, LISA SBERRICK, Assistant City Clerk of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2022-30 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 19th day of April 2022, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Lisa Sherrick Assistant City Clerk EXHIBIT A BUDGET AMENDMENT EXHIBIT A CITY OF WEST COVINA BUDGET AMENDMENT Date: 3/22/2022 Requested by: Mike Cresap Dept/Div: Public Services - Maint Division Fleet Services Section EXPENDITURES BA # 48 Posted By: Date Posted: Fiscal Year: 21-22 Amount: $350,000.00 Description: Amendment required to purchase new fleet vehicles. Account Number Dept/Account Description Current Budget Proposed Amendment Amended Budget 119.80.7008.7170 Vehicles & Mobile Equipment - 350 000.00 350 000.00 - 350 000.00 350 000.00 REVENUES Account Number Account Description Current Budget Proposed Amendment Amended Budget REASON/JUSTIFICATION (Please be specific) Amendment needed to purchase fleet vehicles. APPROVALS City Council Approval Date (if required, attach minutes): 4/19/2022 ❑ Approval Not Required Dept Head Approval: Date: Finance Director: Date: Funds Available? ❑ Yes ❑No City Manager: Date: (if over $100,000) ❑ Approved ❑ Denied