CC - Item 5D - Authorization to Acquire Two Used RAV4 LE Hybrid Vehicles in an Amount Not-to-Exceed $90,000ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BEN KIM, CITY MANAGER
DATE: APRIL 25, 2023
SUBJECT: AUTHORIZATION TO ACQUIRE TWO USED TOYOTA RAV4 LE
HYBRID VEHICLES IN AN AMOUNT NOT TO EXCEED $90,000
SUMMARY
The City is seeking to acquire two used Toyota RAV4 LE Hybrid vehicles utilizing funding
received from the South Coast Air Quality Management District ("AQMD"). Due to a lack of
inventory, high mark-ups, and long lead times to acquire new vehicles on the open market, the
Public Safety and Public Works Departments are requesting purchase order authority to acquire
two used vehicles pursuant to the City Purchasing Policy as outlined in Rosemead Municipal Code
Section 3.24.090. Therefore, it is recommended that the City Council adopt Resolution
No. 2023-20 amending the City's Fiscal Year 2022-23 CIP Budget to appropriate additional funds
in the amount of $10,000 from AQMD Fund Reserve ("Attachment A"), and authorize and direct
the City Manager to execute a purchase order in an amount not to exceed $90,000 for the
acquisition of two used Toyota RAV4 LE Hybrid vehicles.
BACKGROUND
Assembly Bill 2766 ("AB 2766") was adopted in 1990 to provide a revenue stream for programs
to reduce air pollution from motor vehicles and for related planning, monitoring, enforcement, and
technical studies. AB 2766 revenue is distributed by the AQMD on a quarterly basis to the 162
participating cities and counties in the South Coast Air Basin based on the prorated share of their
population for eligible projects. Eligible project examples include but are not limited to clean fleet
vehicle purchases and alternative fuel infrastructure. The City of Rosemead receives $72,000
annually and has a total AQMD Fund reserve balance of approximately $500,000. The current
Fiscal Year 2022-23 CIP Budget includes an appropriation of $80,000 from the AQMD Fund for
vehicle replacement.
DISCUSSION
The Public Safety and Public Works Departments ("the Departments") have two vehicles that have
exceeded their useful life or were incompatible for the Department's use. One of the vehicles was
utilized by the City's Code Enforcement Division and the second vehicle was utilized by the City's
AGENDA ITEM 5.1)
City Council Meeting
April 25, 2023
Page 2 of 3
Engineering Division. In prior years, these vehicles were identified as potential transfers to the Los
Angeles County Sheriff's Department — Temple Station Special Assignment Team for law
undercover enforcement operations and the transfers are in the process of being completed to
support the City's law enforcement mission (Attachment D).
The total availability of new -vehicle inventory in the United States has remained persistently low
as a result of the COVID-19 pandemic. While new vehicles are arriving daily, vehicles that meet
the City's requirements are in high demand and are quickly purchased in the open market. Should
the City attempt to order a vehicle, the lead time to acquire a new vehicle can take several months.
Additionally, because of historically low inventories, dealerships are still marking -up highly
sought after vehicles, with many of the highest mark-ups being applied to the hybrid and alternative
fuel vehicle segment of the market. Furthermore, the City's procurement policy states that any
purchase over $30,000 be competitively bid. This process can add several months to the acquisition
of a new vehicle, in addition to mark-ups from local dealerships.
In an attempt to find an alternative solution, the Departments are requesting purchase order
authority in an amount not to exceed $90,000 to buy two used Toyota RAV4 LE Hybrid vehicles,
consistent with other vehicles of similar make and model in the City's fleet. The Departments will
work with local dealerships including large volume dealers like CarMax and Carvana, to locate
and purchase these vehicles. Because prices from online retailers are opensourced and available
on websites, the City can ensure that the vehicles being sought are at the lowest and best possible
price. Attachments A and B list current market prices for used vehicles of similar make and model
that the City is interested in acquiring.
Rosemead Municipal Code Section 3.24.090 outlines the use of alternative purchasing procedures
which results in a negotiated contract, force account, purchase order or or any other procedure that
may be used when it has been determined to be in the best interests of the City. Staff is
recommending that this alternative procedure be employed for the purchase and acquisition of
these vehicles.
STAFF RECOMMENDATION
It is recommended that the City Council:
1. Adopt Resolution No. 2023-20 amending the City's Fiscal Year 2022-23 CIP Budget to
appropriate additional funds in the amount of $10,000 from the AQMD Fund Reserve;
and,
2. Authorize and direct the City Manager to execute a purchase order in an amount not to
exceed $90,000 for the acquisition of two Toyota RAV4 LE Hybrid vehicles.
City Council Meeting
April 25, 2023
Page 3 of 3
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act
("CEQA"), and it can be seen with certainty that it will have no impact on the environment. As
such, this matter is exempt under CEQA.
STRATEGIC PLAN IMPACT
None.
FISCAL IMPACT
There is no impact to the General Fund. The Fiscal Year 2022-23 CIP Budget includes an
appropriation of $80,000 from the AQMD Fund for fleet purchases. Sufficient funding is available
in the AQMD Fund Reserve for the additional $10,000 appropriation.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
/Ll„C�
Michael Bruckner Michael Chung Bryan Chua
Assistant City Manager Public Works Director Finance Director
Attachment A: Resolution 2023-20
Attachment B: CarMax Printout
Attachment C: Carvana Printout
Attachment D: November 10, 2020 Staff Report
Attachment A
Resolution No. 2023-20
RESOLUTION NO. 2023-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, CALIFORNIA, TO AMEND THE FISCAL YEAR 2022-23
BUDGET AND APPROPRIATE ADDITIONAL FUNDS FOR THE
ACQUISITION OF HYBRID VEHICLES
WHEREAS, the City Council adopted the Fiscal Year 2022-23 Operating and Capital
Improvement Program budgets on June 14, 2022; and
WHEREAS, the Fiscal Year 2022-23 budget included funding for vehicle acquisitions in
the amount of $80,000; and
WHEREAS, sufficient funding is not available in the City's adopted Fiscal Year 2022-23
budget thus requiring a supplemental budget appropriation in the amount of $10,000 to fully fund
the cost of the vehicle acquisitions; and
WHEREAS, amendments must periodically be made to the budget to conform to changed
circumstances following the adoption of the budget; and
WHEREAS, the revised appropriation constitutes an update to the Fiscal Year 2022-23
budget approved pursuant to Resolution No. 2022-38.
THE ROSEMEAD CITY COUNCIL HEREBY RESOLVES AS FOLLOWS:
SECTION 1: The City Council hereby approves an appropriation in the amount of Ten
Thousand Dollars ($10,000) in AQMD Funds to increase funding for vehicle acquisitions, for a
total budget of $90,000.
SECTION 2: The City Clerk shall certify the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 251h day of April 2023.
Sean Dang, Mayor
APPROVED AS TO FORM: ATTEST:
Rachel H. Richman, City Attorney Ericka Hernandez, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) §
CITY OF ROSEMEAD )
I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California,
do hereby certify that the foregoing City Council Resolution No. 2023-20 was duly adopted
by the City Council of the City of Rosemead, California, at a regular meeting thereof held on
the 25" day of April, 2023, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Ericka Hernandez, City Clerk
Attachment B
CarMax Printout
3/23/23, 11:07 AM
= CARmax _
Search by make, model, or keyword
Used Toyota RAV4 Hybrid LE White Exterior for Sale
Used Toyota RAV4 Hybrid LE White... 7 Matches
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2020 Toyota
RAV4 Hybrid LE
$37,998* • 4K mi A
$199 Shipping from CarMax Stockton, CA
FILTER & SORT (4) 1~ COMPARE
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2020 Toyota
RAW Hybrid LE
$34,998* • 34K mi A
$199 Shipping from CarMax Pleasant Hill, CA
2020 Toyota
RAV4 Hybrid LE
$33,998* • 43K mi A
$599 Shipping from CarMax Vancouver, WA
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2019 Toyota
RAV4 Hybrid LE
$32,998* • 36K mi A
$799 Shipping from CarMax Killeen, TX
https://w.wa.carmax.com/oarsAoyota/rav4-hybr!dAeANhite 1/4
3/23123, 11:07 AM
t
2021 Toyota
RAW Hybrid LE
$33,998* • 12K mi A
$1999 Shipping from CarMax Clearwater, FL
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1
Used Toyota RAV4 Hybnd LE While Exterior for Sale
2020 Toyota
RAW Hybrid LE
$35,998* • 29K mi A
$1899 Shipping from CarMax Louisville, KY
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Get pre -qualified with
no impact to your credit
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Shop with your
personalized terms
GET PRE -QUALIFIED
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2019 Toyota
RAV4 Hybrid LE
$29,998* • 31K mi A
$1999 Shipping from CarMax Jacksonville, NC
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"Price excludes government fees and taxes, anyfinance charges, $85 CarMax document processing charge (not required by law), Va
any electronic filing charge, and anyemission testingcharge. Price assumes that final purchase will be made in the State of CA, cc
unlessvehicle is non -transferable. Vehicle subjectto priorsale. Applicable transferfees are due in advance of vehicle delivery and w
are separate from sales transactions. LL
*CarMax delivery is available within a 60 -mile radius of select stores. Not available to customers in all states. Please contact your
nearest store for details.
https:/tw.camax.com/carsitoyota/rav4-hybridAe/white 2/4
Attachment C
Carvana Printout
3123/23, 11:08 AM
USED WHITE TOYOTA RAV4 HYBRID LE
Used Cars I Toyota I Toyota RAV4-Hybrid I LE I White
Search makes, models or keywords
PAYMENT B PRICE / MAKE a MODEL a
1 ROSEMEAD, CA
Used White Toyota RAV4 Hybrid LE For Sale Online I Carvana
RESULTS:I
RECOMMENDED �
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2022 Toyota RAV4 Hybrid
LE • 9,665 miles
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Shipping, $990 • Get it by Apr 1st
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White X
LE X
Toyota RAV4 Hybrid X
Q NOTIFYME
BODYTYPE t
YEARILMILEAGE F
FEATURES /
MORE FILTERS F
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less than 2 minutes, with no impact to
your credit.
GET PRE -QUALIFIED NOW
SAVE YOUR SEARCH
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SAV': i"S SEARCH
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WITH CARVANA
Est. S816/mo
$0 Cash down
https:ll n .wwana.com/cars/filters?cvnaid=eyJmaWxOZXJzljp7lmZyZWVUZXhOijoidG95b3RhiHJhdjQgaHlicmlklGxllHdoaXRIInOslmZpbHRIciNvdXJ... 1/7
Attachment D
City Council Staff Report
Dated November 10, 2020
ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: GLORIA MOLLEDA, CITY MANAGER
DATE: November 10, 2020
SUBJECT: CONSIDERATION OF VEHICLE LEASES WITH ENTERPRISE FLEET
MANAGEMENT
SUMMARY
Approval of this item will authorize the second -year implementation of a Vehicle Leasing and
Replacement Program and authorize the City Manager to execute vehicle leases with Enterprise
Fleet Management.
BACKGROUND
The City maintains a current fleet of 34 vehicles used by various City Departments. These
vehicles range from regular sedans to specialty heavy-duty equipped trucks used by the City's
Public Works Department. On April 9, 2019, the Council authorized the first-round (12
vehicles) replacements through Enterprise Fleet Management (attached staff report) summarized
as follows:
Year 2019
Vehicle leasing and Replacement Schedule
Dept.
New Unit #
Make/Model
Replace Unit #
Make/ Model
Surplus
Value
CDD
511
2019
Toyota Prius
3
2009 Toyota Camry
Assigned to Public Safety
n/a
Parks &Rec.
504
2019
Chrysler Pacifica
41
2002 Ford Econoline
Salvaged -Inoperable
$
-
505
2019
Ford Transit Connect
42
2003 Ford Econoline
Salvaged -Inoperable
$
506
2019
Ford Transit Connect
47
2004 Ford Econoline
Salvaged -Inoperable
$
Public5afety
510
2019
Ford Transit Connect
59
2008 Chevy Colorado
Enterprise Auction
$
5,350
Public Works
507
2019
Ford F-150
43
2005 Ford Explorer
Enterprise Auction
$
2,855
512
2019
Ford F-350
39
2001 Ford Ranger
Enterprise Auction
$
655
502
2019
Ford F-150
61
2005 Chevy Silverado
Enterprise Auction
$
5,960
503
2019
Ford F-250
54
2008 Chevy Colorado LT
Enterprise Auction
$
6,040
501
2019
Ford F-250
53
2008 Chevy Colorado LT
Enterprise Auction
$
5,260
508
2019
Ford F-250
62
2006 Ford F-250
Enterprise Auction
$
7,355
509
2019
Ford F-250
63
2008 GMC C2500
Enterprise Auction
$
8,445
City Council Meeting
November 10, 2020
Paae 2 of 5
Prior to 2019, the City purchased approximately four vehicles each year and either disposed of or
reassigned the vehicles within the City departments. As noted in the 2019 staff report, this
practice lead to increased spending for maintenance as the vehicles would remain in the fleet
long after appropriate use of life and requiring higher maintenance and fuel expenses. The
Vehicle Replacement and Maintenance Lease Program was initiated in 2019, in order to reduce
such costs and outsource portions of the fleet maintenance activities for operational efficiency.
The proposed second -round Year 2020 vehicle replacement schedule includes eight lease
vehicles from Enterprise Fleet Management ("EFM") summarized as follows:
The proposed 2020 vehicle replacement schedule terms are similar to that of 2019. Each vehicle
will be leased over five -years from delivery. At the end of the lease, the City will have the
option to either purchase the vehicle(s) at the reduced book value or have the vehicles sold by
EFM and forward the proceeds to the City. Each vehicle will be equipped with special
equipment such as emergency lighting, service/toolbox bodies, and other equipment specified by
the department's operational need.
As with the 2019 lease vehicles, an agreement with EFM can be executed without going through
the traditional bidding process by piggybacking on the existing fleet leasing and management
services contracts on The Interlocal Purchasing System (TIPS). TIPS is a national cooperative
purchasing program whose membership includes government and other entities in various states,
including California. This cooperative purchasing system enables member entities to purchase
on an "as -needed" basis from competitively awarded contracts with high-performance vendors.
EFM has secured a contract on TIPS thru a competitive process for fleet leasing and
management services and therefore the City Council can authorize contracting pursuant to TIPS
RFP No. 02072816.
Year 2020 Vehicle Lease and
Replacement Schedule
Dept.
New Unit ft
Make/Model
Replace Unit#
Make/ Model
Surplus
Value
Admin
TBD
2020/21 Toyota Highlander Hybrid
69
2014
Ford Fusion Hybrid
Assign to Sheriff's Dept.
n/a
TBD
2020/21 Toyota Highlander Hybrid
70
2014
Ford Fusion Hybrid
Accident Vehicle
$ 34,245
Parks & Rec.
TBD
2020/21 Ford F-150
64
2010
Ford F-150
To Auction
TBD
Public5afe
TBD
2020/21 Toyota RAV4 Hybrid
45
2005
Ford Ranger
To Auction
TBD
Public Works
TBD
2020/21 Ford F-450
51
2007
Chevy 3500
To Auction
TBD
TBD
2020/21 Ford F-450
52
2008
Che 3500
To Auction
TBD
TBD
2020/21 Ford F-250
56
2009
Che Silverado
To Auction
TBD
TBD
2020/21 Toyota RAV4 Hybrid
65
2009
Ford Escape
Assign to Sheriff's Dept.
n/a
The proposed 2020 vehicle replacement schedule terms are similar to that of 2019. Each vehicle
will be leased over five -years from delivery. At the end of the lease, the City will have the
option to either purchase the vehicle(s) at the reduced book value or have the vehicles sold by
EFM and forward the proceeds to the City. Each vehicle will be equipped with special
equipment such as emergency lighting, service/toolbox bodies, and other equipment specified by
the department's operational need.
As with the 2019 lease vehicles, an agreement with EFM can be executed without going through
the traditional bidding process by piggybacking on the existing fleet leasing and management
services contracts on The Interlocal Purchasing System (TIPS). TIPS is a national cooperative
purchasing program whose membership includes government and other entities in various states,
including California. This cooperative purchasing system enables member entities to purchase
on an "as -needed" basis from competitively awarded contracts with high-performance vendors.
EFM has secured a contract on TIPS thru a competitive process for fleet leasing and
management services and therefore the City Council can authorize contracting pursuant to TIPS
RFP No. 02072816.
City Council Meeting
November 10, 2020
Page 3 of 5
STAFF RECOMMENDATION
Staff recommends that the City Council take the following actions:
1) Authorize the City Manager to execute vehicle leases with Enterprise Fleet Management
for vehicles as noted in this report; and
2) Declare various City -owned vehicles displaced by the lease program as surplus and
dispose of such vehicles as deemed appropriate.
FISCAL IMPACT
Payments for the program during subsequent years will be budgeted through the City's
Equipment Replacement and AQMD funds, including Gas Tax Fund (fund 201), AQMD Air
Quality Improvement Fund (fund 230), Equipment Replacement Fund (fund 501), and General
Fund (fund 101). Staff projects an overall reduced ongoing operational costs on the City's
General Fund due to savings related to below-market pricing, reduced maintenance, and lower
fuel use costs.
Total Deposit $ 5 1 Total 12 Month Lease Cost $ ]0,999.40
The FY 20/21 approved budget are as follows:
Fund 501 (Equipment Replacement Fund) $200,000
Fund 230 (AQMD) $30,000
Fund 101 (General Fund Repairs & Maintenance) $30,000
Fund 201 (Gas Tax Repairs & Maintenance) $20,000
Total $280,000
The current total vehcle purchase fund balances are as follows:
Fund 501 (Equipment Replacement Fund) $548,238
Fund 230 (AQMD) $429,298
Year 2020 Vehicle lease and Replacement Schedule Costs Analysis
Quote#
Make/Model
Capitalized
Price
Deposit
Monthly
Lease
Monthly
Maintenance
Monthly Saks
Tax
Monthh/Total
Reduced Book Value
at 60 Months
4740537
2020/21 Toyota Hi hlande,Hybrid
$ 41,473.22
$
$ 642.89
$ 35.42
$
61.07
$ 739.38
$10,399.42
4791063
2020/21 Toyota Highlander Hybrid
$ 36,848.00
$
$ 608.49
$ 36.98
$
57.80
$ 703.24
$ 7,062.60
4791066
2020/21 Toyota RAW Hybrid
$ 27,547.00
$
$ 456.52
$ 38.54
$
43.37
$ 537.43
$ 5,295.80
4791067
2020/21 Toyota RAV4 Hybrid
$ 27,547.00
$
$ 456.52
$ 38.54
$
43.37
$ 537.43
$ 5,295.80
4791059
2020/21 Ford F-150
$ 28,266.00
$
$ 468.27
$ 29.79
$
44.49
$ 542.55
$ 5,432.20
4791069
2020/21 Ford F-250
$ 49,569.00
$ 11,792.06
$ 651.11
$ 34.68
$
61.86
$ 747.65
$ 7,433.60
4791074
2020/21 Ford F-350
$ 75,553.00
$ 22,403.70
$ 926.95
$ 44.90
$
88.06
$ 1,059.91
$ 10,529.60
4791075
2020/21 Ford F-350
$ 70,016.00
$ 19,372.19
$ 878.96
$ 878.96
$
83.50
$ 1,007.36
$ 10,003.30
$ 356,819.22
$ 53,567.95
$ 5,089.71
$ 1,13].81
$
483.52
$ 5,874.95
$ 61,452.32
Total Deposit $ 5 1 Total 12 Month Lease Cost $ ]0,999.40
The FY 20/21 approved budget are as follows:
Fund 501 (Equipment Replacement Fund) $200,000
Fund 230 (AQMD) $30,000
Fund 101 (General Fund Repairs & Maintenance) $30,000
Fund 201 (Gas Tax Repairs & Maintenance) $20,000
Total $280,000
The current total vehcle purchase fund balances are as follows:
Fund 501 (Equipment Replacement Fund) $548,238
Fund 230 (AQMD) $429,298
City Council Meeting
November 10, 2020
Paee 4 of 5
Sufficient funds are allocated in the FY 20/21 approved budget for the proposed Year 2020
vehicle lease program, and the ongoing lease payments for the twelve 2019 leased vehicles.
STRATEGIC PLAN IMPACT - None
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Ben Kim, Assistant City Manager
Attachment A: April 9, 2019, City Council Staff Report
Attachment B: Current Vehicle Inventory List
Attachment C: FY 20/21 proposed lease vehicle quotes from Enterprise Fleet Management
City Council Meeting
November 10, 2020
Page 5 of 5
Attachment B
Current Vehicle Inventory List
Vehicle#
Year
Make
Model
Department
1
69
2014
Ford
Fusion Hybrid SE
Admin
2
70
2014
Ford
Fusion Hybrid SE
Admin
3
511
2019
Toyota
Prius
CDD
4
504
2019
Chrysler
Pacifica
Parks & Recreation
5
505
2019
Ford
Transit Connect
Parks & Recreation
6 1
506
2019 1
Ford
Transit Connect
Parks & Recreation
7
64
2010
Ford
F150 Truck
Parks & Recreation
8
74
2016
Ford
Escape
Public Safety
9
75
2016
Ford
F150Truck
Public Safety
10
77
2016
Ford
F150Truck
Public Safety
11
45
2005
Ford
Ranger
Public Safety
12
21
2008
Toyota
Prius
Public Safety
13
71
2015
Chevy
Impala
Public Safety
14
78
2016
Ford
F150 Truck
Public Safety
15R56
2016
Ford
F150Truck
Public Safety
162009
Toyota
Camry Hybrid
Public Safety
172019
Ford
Transit Connect
Public Safety
182007
Chevy
3500
Public Works
192008
Chevy
3500
Public Works
202009
Chevy
Silverado
Public Works
21
2009
Chevy
Silverado
Public Works
22
67
2014
Ford
F350
Public Works
23
68
2014
Ford
F350
Public Works
24
58
2009
Ford
Altech Lift Truck
Public Works
25
73
2015
Ford
F250 Truck
Public Works
26
72
2015
Ford
F350Truck
Public Works
27
65
2009
Ford
Escape
Public Works
28
501
2019
Ford
F250
Public Works
29
507
2019
Ford
F150
Public Works
30
503
2019
Ford
F250
Public Works
31
502
2019
Ford
F150
Public Works
32
2282019
Ford
F250
Public Works
33
509
2019Ford
F210
Public Works
34
512
2019
Ford1
F350
Public Works