HomeMy WebLinkAboutE-14 Staff Report - Vehicle PurchaseCONSENT ITEM
E-14
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: JOSE D. JIMENEZ, DIRECTOR OF ECONOMIC & COMMUNITY
DEVELOPMENT
DATE: MARCH 18, 2024
SUBJECT: WAIVE THE COMPETITIVE BIDDING PROCESS AND AUTHORIZE: 1) THE
PURCHASE OF TWO FORD F-150 EV LIGHTNING TRUCKS VIA THE
ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT (“EECBG”)
AND; 2) AUTHORIZE THE PURCHASE OF ONE FORD MAVERICK HYBRID
TRUCK VIA THE MOTOR VEHICLE SUBVENTION FUND PROGRAM
(“AB2766”)
BACKGROUND:
The U.S. Department of Energy has a grant opportunity under its Energy Efficiency and
Conservation Block Grant Program (EECBG). The City of Azusa is eligible for $112,520 of
formula funding from the (EECBG) program. This funding opportunity is flexible and offers
local governments the opportunity to invest in 14 different types of clean energy or energy
efficiency projects. Specifically, there is the Voucher option which allows local governments to
purchase eligible equipment including electric vehicles.
Economic and Community Development currently utilizes a fleet of vehicles as part of its ongoing
work within the Community. Recently the Department became aware of an expiring grant
opportunity that is intended to allow for the electrification of vehicle fleets. Known as the EECBG
Grant, the City of Azusa is eligible to receive an allocation of $112,520 to be used towards the
purchase of fully electric vehicles. Through this Grant, the Department would like to acquire two
Ford F-150 EV Trucks.
Additionally, the Department is requesting to utilize AB2766 funds to purchase a gas-powered
hybrid option for the Economic Development Division. This vehicle option allows for ED staff to
carry display material, among other items when attending special events within the City and
Approved
City Council
March 18, 2024
Request to Purchase ECD Vehicles
March 18, 2024
Page 2
traveling outside the City to attend conferences. In total, this request will allow for the acquisition
of three vehicles.
RECOMMENDED ACTION:
Staff recommends that the City Council take the following actions:
1) Waive competitive bidding process as authorized under Azusa Municipal Code Section
2.521(a) and approve the contract to purchase three vehicles through National Auto Fleet
Group; and,
2) Approve the purchase of one 2024 Ford Maverick Hybrid by utilizing AB2766 Funds.
3) Authorize the City Manager or his designees to utilize the U.S. Department of Energy
EECBG allocation consisting of the City of Azusa’s funding formula of $112,520 for the
purchase of two 2024 Ford F-150 Lightning Trucks.
ANALYSIS:
The Energy Efficiency and Conservation Block Grant is one of the climate-related programs
funded through the Infrastructure Investment and Jobs Act (“IIJA ”), it is the only program that
goes directly to cities' efforts towards advancing energy efficiency, energy conservation, and
renewable energy projects within communities. In the case of Azusa, the City is eligible to draw
down as much as $112,520 to allow for the purchase of two fully electric Ford F-150 Lightning
EV Trucks. National Auto Fleet Group provided a quote of $127,653.92 for two vehicles. The
Department intends to utilize the complete allocation to cover the cost while utilizing the Budget-
approved Economic Development Funds to cover the resulting balance of $15,133.92.
While addressing the Department’s vehicle fleet needs, staff intends to utilize the South Coast
AQMD AB2766 Motor Vehicle Subvention Fund Program to allow for the purchase of one Ford
Maverick gas-powered Hybrid Truck. National Auto Fleet Group provided a quote of $ $42,712.34
for the vehicle, a cost which can be fully absorbed by the City’s AB2766 allocation.
As discussed, there are forthcoming deadlines that will limit the use of these funds. If left unused
by April 30, 2024, the City will forfeit the $112,520 of EECBG funds, while changes to AB2766
on July 1, 2024, will prohibit the purchase of a gas-power hybrid option. Therefore, the
Department would like to take this opportunity to ensure these funds are put to productive use.
FISCAL IMPACT:
The purchase of two Ford F-150 Lightning EV Trucks will be covered via the EECBG allotment
of $112,520; and the resulting balance of $15,133.92 will be covered through Account No. 10-35-
630-000-7135, while the Cost of the Ford Maverick Hybrid Truck will be completely covered via
AB2766 funds. Upon Council approval and once the voucher program is approved by the U.S.
Department of Energy, staff will process a budget amendment and add $112,520 to the budget
under 28-35-643-000-7135 and transfer $15,133.92 from 10-35-630-000-6399 to 10-35-630-000-
Request to Purchase ECD Vehicles
March 18, 2024
Page 3
7135. In addition, staff will increase the AB2766 budget by $42,712.34 under account 27-25-
523-000-7135.
Prepared by:
Jose D. Jimenez
Economic & Community
Development Director
Fiscal Review by: Reviewed and Approved by:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachments:
1) National Auto Fleet Group – Quote ID: 27393 R2
2) National Auto Fleet Group – Quote ID: 27426
Attachment 1
Attachment 2