Department of Finance
Reference: Municipal Code Update - Procurement of Fleet Vehicles & Equipment
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Catrina Asher, Director of Finance
Date Prepared: March 4, 2025
PURPOSE
To propose updates to the Municipal Code related to the procurement of Fleet vehicles and equipment.
BACKGROUND
Municipal Code Article 3-8 addresses the City’s procurement requirements. All purchases of items or services greater than $50,000, unless otherwise specified, must be formally procured as defined in the Code, which includes the use of cooperative agreements like state award agreements.
Many of our purchases of Fleet vehicles and equipment happen through cooperative agreements that provide for competitive pricing. However, some specialty vehicles and equipment are not covered under existing agreements and often exceed $50,000 in value.
When items like Fleet vehicles or equipment are purchased, quotes for comparably equipped items are generally readily available and the City often takes possession of the item in one delivery. This is very different from extended projects like construction or consulting services where the work takes place over a longer period of time and may be much more complex. In those instances, a full formal procurement provides additional detail and information on the vendor and their plan and proposal for the project, including risk factors that could impact timelines and performance. This information is very helpful for those kinds of projects but is less applicable to a vehicle purchase where the goods are well defined and delivery occurs in one instance. Additionally, vendors are less inclined to provide more than a written quote for these types of sales when the additional information is not relevant to the type of purchase being made.
Based on this information, staff feels that formal procurement processes, when used for Fleet vehicles and equipment, do not provide more competitive pricing compared to obtaining quotes.
The proposed amendment to Municipal Code allows for the use of three written quotes or the use of cooperative agreements when purchasing Fleet vehicles and equipment. This proposed amendment would not apply to purchases of other capital equipment or the purchase of services.
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM
The proposed changes will expedite the purchasing of Fleet vehicles and equipment that are not under a state contract or other cooperative agreement. Quotes will still be required.
FINANCIAL IMPACT
Staff does not expect this change to the Municipal Code to impact the price paid for Fleet vehicles and equipment.
STAFF RECOMMENDATION
Staff recommends approving the proposed changes as presented.
Attachments:
- Proposed Ordinance