REPORT TO THE CITY COUNCIL
November 5, 2020
FROM: GREGORY A. BARFIELD, Director
Department of Transportation
BY: BRIAN BARR, Assistant Director
Department of Transportation
DUANE MYERS, Fleet Manager
Department of Transportation, Municipal Fleet Division
CLIFF TRAUGH, Senior Management Analyst
Department of Transportation, Municipal Fleet Division
SUBJECT
Title
Reject all bids for the purchase of ten Toyota Prius hybrid vehicles and staff will do a 30-day rebid (Bid File 3780)
Body
RECOMMENDATION
Staff recommends Council reject all bids for the purchase of ten Toyota Prius hybrid vehicles.
EXECUTIVE SUMMARY
The City Attorney’s Office, Code Enforcement Division seeks to purchase ten Toyota Prius as replacements for trucks past their useful life. These new hybrid vehicles will be utilized to travel throughout the city of Fresno enforcing the municipal code and responding to residents’ complaints. The units will be purchased through a competitive bidding procurement process and will be funded through the General Fund. The bids received for this project were 16 percent above the general fund budget allocation; therefore, staff recommends rejecting all bids and doing a 30-day re-bidding for this project with a delivery window of 150 days rather than the original 30-day window. This change will allow for potential bidders to place a factory order rather than sourcing units from existing inventory.
BACKGROUND
The City Attorney’s Office, Code Enforcement Division is responsible for enforcing Fresno Municipal Code, as well as California building, plumbing, and electrical code. This is accomplished through inspections and citywide patrolling, utilizing seven teams, operating over 60 vehicles. These new vehicles will allow teams to safely and reliably travel throughout the city addressing violations, complaints, and offering customer service to the residents of Fresno.
Currently, Code Enforcement operates a fleet of light-duty pickups originally purchased to fulfill a need to carry equipment. As the public nuisance and zoning teams have expanded in the last few years, the growing staff continued to operate out of existing pickups, handed down from other teams within their division. The replacement vehicles will be hybrid compact sedans, which will be better suited for the required tasks, offering greater maneuverability and interior space. These new units will contribute to the City of Fresno’s goal to incorporate low emissions vehicles into the fleet where applicable.
The light vehicle class is on a ten-year or 100,000-mile replacement schedule, which has been established by the Municipal Fleet Division as the optimum replacement time. The units identified for replacement are beyond this schedule in either age or mileage. The Municipal Fleet Division recommends this purchase based on the replacement schedule, and the needs of the department.
This purchase is 16 percent above the general fund budget allocation. The budgeted cost was projected as a factory order placed through a dealer. Due to the delivery timeline given by the City Attorney’s Office of 30 days, a factory order would not be possible, requiring potential bidders to source units from existing stock. This practice historically produces faster delivery times, but at a higher cost. Staff recommends rejecting all bids and re-bidding the units with a delivery window of 150 days.
Competitive bids were solicited for the ten Toyota Prius on September 16, 2020, and advertised in the Fresno Business Journal. The Notice Inviting Bids was sent to four exchanges and specifications were distributed to five potential bidders. Two bids were received and reviewed on September 29, 2020. Staff determined the apparent lowest bidder was non-responsive due to the omission of a bid deposit. The City Attorney has reviewed and approved to form.
ENVIRONMENTAL FINDING
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a project as defined by CEQA.
LOCAL PREFERENCE
Local preference is not applicable because this is rejecting all bids.
FISCAL IMPACT
General funds will be used to purchase these items. The source of funding for the purchase cost of the ten Toyota Prius will be the Code Enforcement Operating fund.