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Home My WebLink About2023-020 Fleet Vehicle PurchaseMarch 3, 2023 Report No. 2023-020 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Fleet Purchase Using Delegation of Authority Ordinance 22-1269 EXECUTIVE SUMMARY: Fleet Services recently purchased a 15-passenger van in the amount of $55,111.35 for the Denton Fire Department under the delegation of authority approved by Ordinance 22-1269. The van was budgeted under the American Rescue Plan Act – State and Local Fiscal Recovery Fund (SLFRF) in FY 21-22 as part of a mobile vaccination program. The van will be outfitted with medical equipment and will allow the Fire Department to enhance its level of preparedness in responding to public health emergencies. BACKGROUND: In late 2019, the City began experiencing challenges in securing materials and supplies due to supply chain issues. Conditions worsened and began to affect several operational areas including Fleet Services. Vehicle lead times grew close to a year under the organization’s normal acquisition process. At times, vehicles and equipment become available through other avenues such as dealer inventory, lease-to-own opportunities, and unclaimed allocations from non- contract Original Equipment Manufacturers (OEM). Staff requested a Delegation of Authority for Fleet Services allowing the City to move quickly when opportunities present to procure vehicles or equipment outside the organization’s normal acquisition process. On June 28, 2022, City Council adopted Ordinance 22-1269 providing for the delegation under the following conditions: 1) City Manager, or their designee, will be allowed to sign contracts or other required documentation with OEM suppliers to purchase a vehicle for a city utility or public safety department (which cost that has been approved through the budget process) through the following means: a) Fleet Services will review any available procured contracts (i.e. City of Denton contracts, cooperative contracts, and other City contracts with piggyback options). Fleet Services will use such a contract if available. Once a contract is located, City Manager, or their designee, will be able to execute the appropriate documentation to purchase under the contract. b) In the event there is not a procured contract that can be used for the purchase, and the purchase is required to protect the health and safety of City of Denton residents, Fleet Services will work with the utility or public safety department to prepare a declaration of emergency that details the need for the vehicle and justification for the emergency purchase for review and approval by Purchasing and Legal. March 3, 2023 Report No. 2023-020 c) This process deviates from the City’s standard process due to City Council approval required for purchases of $50,000 or greater. Under this delegated authority, as long as the vehicle cost is part of a budgeted item, City Council would not approve of these contracts. d) Fleet Services will provide a report to City Council in the Friday Report, or another appropriate method, regarding any vehicles purchased with this authority, the cost, any markup or discounts received, and a running total of each department’s vehicle budget as the funds are used. 2) This delegation of authority is time limited to the earlier of three years or when market conditions return to normal. As part of a mobile COVID-19 vaccination project, a van was identified for funding under SLFRF and approved with the FY 21-22 budget. With the widespread availability of the COVID-19 vaccine, the urgency for vaccinations was addressed but the need for continued preparedness efforts for public health emergencies remained. Medical storage equipment was purchased, and the Fire Department continued to work with Fleet Services to purchase a van, however, efforts were hampered by supply chain issues. A 15-passenger van was recently located at Caldwell County Ford dealership. The dealership is under contract with Tarrant County for the purchase of Pickup Trucks, Vans, and Utility Vehicles. The City of Denton has an interlocal agreement with Tarrant County by Ordinance 1998-175 for the purchase of various goods and services. Chapter 791 of the Texas Government Code authorizes respective participating governments to enter into agreements for the purchase of goods and services. The Agreement allows both entities to utilize contracts for goods and services competitively solicited by the other party to the contract. The solicitation process followed by both entities meets all statutory procurement requirements per Local Government Code 271.102. The vehicle’s cost of $55,111.35 was within the budgeted amount. Meeting the criteria of the delegation, the van was purchased. The van was delivered on Monday, February 27, 2023. The vehicle will allow the Fire Department to enhance preparedness efforts in responding to public health emergencies. EXHIBITS Exhibit 1 Sales Quote STAFF CONTACT: Dustin Rolfe Fleet Superintendent Dustin.Rolfe@cityofdenton.com (940) 349-8438 End User:Caldwell Rep: Contact:Phone/fax: Phone/email:Date: Product Description: email:chris@caldwellcountry.com A.Bid Series:141 46,330.00$ B.Published Options [Itemize each below] Code Bid Price Code Bid Price X2C 3,930.00$ INCL INCL INCL 301A INCL INCL 99G 1,775.00$ INCL 44U INCL INCL 21G INCL INCL 60C 325.00$ KEYLESS ENTRY INCL 96P 1,495.00$ INCL 57B 325.00$ INCL -$ INCL INCL 7,850.00$ C.Unpublished Options [Itemize each below, not to exceed 25%]$=-0.1 % Bid Price Bid Price (50.00)$ EXT COLOR (20.00)$ INT COLOR DELIVERY (70.00)$ D.Registration, Inspection, Paperwork, Postage cost, Courthouse time, & Runner time:INCLUDED -$ E.UPFITTERS -$ F.Manufacturer Destination/Delivery: G.Floor Plan Interest (for in-stock and/or equipped vehicles):-$ H Lot Insurance (for in-stock and/or equipped vehicles):-$ I.Contract Price Adjustment:-$ J.Additional Delivery Charge:211 miles 601.35$ K.Subtotal:54,711.35$ L.Quantity Ordered 1 x K =54,711.35$ M.Trade in:-$ N.400.00$ O.TOTAL PURCHASE PRICE INCLUDING BUYBOARD FEE::55,111.35$ DENTON, TX BUYBOARD FEE PER PURCHASE ORDER: 235/65R16C ALL SEASON REVERSE BACKUP CAMERA FORD CO-PILOT 360 MANUAL AIR CONDITIONING REAR HVAC CRUISE CONTROL 15 PASSENGER SEATING Options Total of B. Published Options: Options YZ OXFORD WHITE VK- EBONY, VINYL FRONT BUCKET Total of C. Unpublished Options: 19X- START STOP REMOVAL CREDIT 19Z- WIFI 4G DELETE CREDIT STOCK 1FBAX2CG0PKA57483 VINYL BUCKET SEATS 3.73 AXLE RATIO 979-567-6129 Friday, February 10, 2023GABBY.LEEPER@CITYOFDENTON.COM POWER LOCKS Options 2023 TRANSIT PASSENGER WAGON 9400 GVWR VINYL FLOOR3.5L ECOBOOST V6 FLEX FUEL CALDWELL COUNTRY FORD A. Base Price: BLUETOOTH POWER WINDOWS GABBY LEEPER 940-349-7615 ROCKDALE COUNTRY FORD BUYBOARD 601-19 QUOTE #CC234113 CITY OF DENTON T-350 148" MED ROOF XL RWD ORDER CODE 301A FORD TRANSIT VAN X2Y CHRIS COLLINS SPLIT SWING OUT REAR DOORS Options 10-SPEED AUTOMATIC ** PRICES ARE SUBJECT TO CHANGE DUE TO SUPPLY CHAIN CHALLENGES. RE-VERIFY PRICING BEFORE ISSUING A PURCHASE ORDER. COMMODITY SURCHARGES MAY APPLY AFTER P.O. IS ISSUED. FINAL PRICE IS NOT CONFIRMED UNTIL VEHICLE ORDER IS ACCEPTED BY MANUFACTURER. PRICE WILL BE CONFIRMED AT TIME OF ORDER ENTRY, BE ADVISED PRICE CAN CHANGE DUE TO MANUFATURER. ENSURE CONFIRMATION OF RECIEPT BY EMAIL WHEN P.O. IS SENT. ** DUE TO SEMICONDUCTOR SUPPLY SHORTAGES, FEATURE AVAILABILITY WILL CHANGE THROUGHOUT THE MODEL YEAR. SEE THE WINDOW LABEL OF A SPECIFIC VEHICLE TO DETERMINE ITS CONTENT.