REPORT TO THE CITY COUNCIL
January 11, 2018
FROM: JIM SCHAAD, Director
Department of Transportation
BY: DUANE MYERS, Fleet Manager
Department of Transportation, Fleet Management Division
CLIFF TRAUGH, Sr. Management Analyst
Department of Transportation, Fleet Management Division
SUBJECT
Title
Approve the use of the City Master Equipment Lease Purchase Agreement to purchase 14 Ford F-150 regular cab, short bed, pickups in the amount of $316,315 for the Development and Resource Management Department
Body
RECOMMENDATION
Staff recommends Council approve the financing of 14 new Ford F-150 regular cab, short bed, pickups in the amount of $316,315.
EXECUTIVE SUMMARY
On August 31, 2017, the City Council approved the contingent purchase of up to 40 additional Ford F-150 pickups in an effort to obtain volume discount pricing. Since the additional vehicles were a contingent purchase, staff did not request financing as an option for payment at that time. The Development and Resource Management Department (DARM) is now moving forward with the purchase of 14 F-150 pickups to replace units past their useful life. The cost of each vehicle is $20,925, and the annual lease payment will not exceed $70,000 for five years.
BACKGROUND
The goal of the City Neighborhood Services program is to improve property values, living conditions, and the overall quality of life in Fresno’s older neighborhoods. The Neighborhood Services program consists of Code Enforcement, Community Revitalization, and Rental Housing. These programs work together to protect, preserve, and promote established neighborhoods in Fresno. These objectives are achieved through enhanced enforcement of codes, incentives, and partnerships with the community.
On February 2, 2017, Mayor Brand introduced the Rental Housing Improvement Act to continue the work of the Mayor-Council Code Enforcement Task Force and implement the Restore Fresno initiative. Restore Fresno, “neighborhood revitalization”, targets specific neighborhoods and completes a property-by-property analysis identifying violations. The initiative also matches residents with applicable resources to improve their properties and their overall quality of life. The Rental Housing Improvement Act is an extension of the Anti-Slumlord Enforcement Team (ASET) and includes provisions to create a new Rental Housing Division within DARM.
These trucks will allow teams to safely and reliably travel to the selected neighborhoods on a property by property basis. The employees require various inspection tools and basic equipment to do perform their duties. The selected F-150 regular cab, short bed pickup, gives the employee the space and functionality required to do this and yet is small enough to maneuver in and out of Fresno’s smaller streets and alley ways.
On August 31, 2017, the City Council approved a purchase contract for F150 pickups from Swansen-Farhney Ford. The original contract was to purchase 24 units with a provision to purchase up to additional 40 units at the same unit price. Since the purchase of additional trucks was contingent upon identification of needs and funding sources, Staff did not request financing as an option for payment at that time. DARM is now requesting the purchase of 14 F-150 pickups to replace units that are past their useful life.
ENVIRONMENTAL FINDING
By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a “project.”
LOCAL PREFERENCE
Local preference is not applicable. The City only received one bidder on this product purchase contract.
FISCAL IMPACT
These vehicles will be leased/purchased over five years. The financing of these vehicles is budgeted in DARM’s FY 2018 adopted appropriations. The annual payment of $70,000 will be included in the five-year General Fund forecast beginning in FY 2019.