Report Prepared by: Christopher Jensen, Director of Parks and Community Services.
Title
SUBJECT: Approval to Purchase Two 2025, Hybrid Engine, AWD, Toyota Sienna from Certified Toyota Dealership(s) with Funding from the Youth Community Access Grant Award for an Amount Not To Exceed $102,764.00
REPORT IN BRIEF
Considers approving to waive competitive bidding requirements and purchasing two 2025, Hybrid Engine, AWD, Toyota Sienna from certified Toyota Dealerships for a not to exceed amount of $102,764.00 to meet deliverables for the Youth Community Access Grant.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the competitive bidding process for a direct purchase; and,
B. Approving the purchase of two 2025 Hybrid, AWD, Toyota Sienna from a Certified Toyota Dealer(s) for an amount not to exceed $102,764.00; and,
C. Authorizing the Purchasing Supervisor to issue a Purchase Order and the City Manager to execute any other necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Merced Municipal Code Article III, Section 3.04.210 - Exemptions from competitive bidding.
CITY COUNCIL PRIORITIES
As provided for in the 2025 Adopted Budget.
DISCUSSION
Waiving the competitive bidding process and approving a direct purchase will enable the Department of Parks and Community Services to secure two six-plus passenger, hybrid engine, vehicles for its outdoor recreation program, as granted through a grant application to the California Natural Resource Agency in 2023.
History and Past Actions
In 2023 Parks & Community Services was awarded the Youth Community Access grant through the California Natural resources Agency. The grant allows the department to reduce its expense and expand its ability to offer outdoor recreational programming through the My City Mentoring program. Outdoor recreation through My City Mentoring has served over 80 at-risk youth and is currently offered to youth referred through Merced County Probation via the Cal VIP program. The program offers youth vocational training, mentorship, and outdoor recreational experiences through trips to local, regional, state, or national parks in the Central Valley area. The grant awarded was to allow the purchase of two hybrid mid-sized, multi passenger vehicles that increase our capacity to serve youth through outdoor recreation while simultaneously reducing our environmental footprint. The make and model was approved by the Natural Resource Agency with the grant application. The Parks and Community Services Department, in conjunction with the Purchasing Division, has invested many staff hours trying to secure these vehicles since last year.
The original plan was to use Council Resolution 2024-26 which allowed for the direct purchase of mid-size vehicles directly from the dealerships. Unfortunately, this resolution expired on December 30th, 2024. No new, mid-size, hybrid engine vehicles with room for more than 6 passengers were located. Toyota, Ford or Chevy and other manufacturers consulted either locally, in the state, or in the nation through national cooperatives which all showed depleted inventory as the demand was very high.
The grant application authorized the purchase of two Toyota Hybrid, AWD, Mid-Sized Vehicles to expand the offering of outdoor recreational programs to youth. In the face of high demand and extremely low supply of hybrid vehicles nationwide, Purchasing staff has been working with the local and regional Toyota dealerships regularly to secure and place two vehicles on reserve. However, the high demand for hybrid vehicles that provide the amenities applied for in the grant is extremely low. The combination of high demand and very low supply makes competitive bidding extremely difficult. The City has already been approved to extend the grant timeline to June 30, 2025 through an amendment grant agreement due to this combination.
Given the context of the requirements and timeline for this purchase, staff is requesting Council’s consideration of utilizing their authority to waive the competitive bidding requirements and allow the direct purchase of two Hybrid, AWD, Toyota Sienna vehicles from a certified Toyota Dealer(s) for a price not to exceed the grant award of $102,764.00.
IMPACT ON CITY RESOURCES
No impact on City resources for the purchase. Funds were awarded from State Natural Resource Agency, Youth Community Access Grant and are included in the FY 24-25 budget. The impact will be in ongoing operating costs and maintenance.
ATTACHMENTS
1. 8.20.24 Amendment to YCA Grant Award