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Jeff Martindale, Chief Purchasing & Personnel Officer

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Jeff Martindale, Chief Purchasing & Personnel Officer April 14, 2021 TO: Honorable Mayor & Council FROM: Jeff Martindale, Chief Purchasing & Personnel Officer Dave Del Grande, Director of Finance DD VIA: Tom Coleman, City Manager TC SUBJECT: Recommendation to Waive the Bid Process in Accordance with the Code of the City of Newark for the Procurement of Electric Vehicles BACKGROUND In 2019, City Council gave direction to staff to begin investigating the feasibility of integrating electric vehicles (EVs) into the City’s fleet and to replace current vehicles with EVs wherever possible. As such, staff intended to purchase three EVs in 2020 as part of a plan to replace three City vehicles due for replacement: Electric vehicle #116 (2008 Ford Focus), Parking vehicle #1102 (2008 Ford Focus), and Parking vehicle #1103 (2011 Ford Ranger). The second part of this plan was to move Stormwater vehicle #1512 (2009 Ford Focus) to Parking (becoming the new vehicle #1102), which would put the three new EVs in Electric, Parking, and Stormwater. However, due to operational and financial concerns related to the COVID-19 pandemic, these purchases were pushed back until 2021. While there are several vehicles in the City’s fleet that staff believes are not yet feasible to be replaced with EVs, each of the above noted vehicles are sedans and the most applicable for EV integration into the fleet. Coupled with late-Spring electric vehicle charging station installation planned by the City Electric Department, the time now seems right to purchase the first EVs of the Newark fleet. Since June 2019, Chief Purchasing & Personnel Officer Jeff Martindale has coordinated with City Manger Tom Coleman, Finance Director Dave Del Grande, Electric Director Bhadresh Patel, PW&WR Director Tim Filasky, Head Mechanic Dave Vispi, former Councilman Stu Markham, CAC member Andrew O’Donnell, various other members of the CAC, and representatives of the Climate Mayors/Electrification Coalition to determine the best charging stations and EVs to kickstart the City’s EV efforts. From these collaborations, staff determined that ChargePoint charging stations and Nissan LEAFs were the most appropriate fit for City operations at this time. In conjunction with Porter Nissan, Nissan Corporate allowed City staff and Council to demo the Nissan LEAF in the fall of 2019. BID WAIVE CRITERIA While the 2021 Nissan LEAF is not yet on the Sourcewell/Climate Mayors contract list, the Nissan LEAF S Plus is available for the first time through Hudson Motors Partnership on the Delaware State Contract. As such, the City can waive the need to put such procurement through the typical bidding process by joining the State’s awarded contract with Hudson Motors. However, in an effort to provide Porter Nissan the opportunity to bid on this contract, CPPO Martindale reached out to Bill George of Porter Nissan and Infiniti in March 2021 to determine if they could match or beat the pricing provided through the state contract, which they can. Also, given that Porter Nissan facilitated a demonstration of the LEAF in 2019 and has on-site charging stations, further collaboration with Porter is warranted and may help bridge the gap between vehicle procurement and final installation of charging stations at City Hall and Municipal Lot #1. The total sales price per vehicle from Porter is $39,710. However, after a $7,500 factory rebate (subject to change beginning 5/2021) and a $2,500 DNREC vehicle clean air rebate, the per unit price drops to $29,710. This represents a $5,274 savings per vehicle ($15,822 total) over the state contract. FUNDING Funding up to $117,000 is available through the City CIP budget for vehicles #116, #1102, #1103, and #1512, as shown below. Since vehicle #1512 (Stormwater) is in relatively better shape than the other three vehicles, vehicle #1512 can be repurposed for Parking, and charging infrastructure will be limited for the rest of 2021 at least (we will have six charging ports available for three City vehicles plus public use), a full replacement of vehicle #1512 is now recommended for 2022 instead of 2021. The $89,130 needed for the three EVs exceeds the $84,000 budgeted for the replacement of vehicles #116, #1102, and #1103 in 2021. As such, $5,130 of the current resources portion of the 2021 funding to replace vehicle #1512 will be utilized to complete this purchase. The $5,130 used from vehicle #1512’s replacement fund will be replenished during the 2022 budget process. 2 RELATED DOCUMENTS 1. State Contract awarded model specifications and prices 2. Porter Nissan and Infiniti quote RECOMMENDED MOTION I move that Council waive the bid process in accordance with the Code of the City of Newark for the procurement of three Nissan LEAF S Plus models from Porter Nissan and Infiniti of Newark, Delaware in the total amount of $89,130. 3 RELATED DOCUMENT #1: DELAWARE STATE CONTRACT PRICING (SEE HUDSON MOTORS COLUMN ONLY) Specification I - Pure Electric Vehicle Chas S Winner Inc. DBA Winner Ford Hudson Motors Partnership I.G. Burton & Company Inc Vehicle Make / Model 2021 Ford Mustang Mach-E 2021 NISSAN LEAF PLUS S 2021 CHEVROLET BOLT 1FB48 Manufacturer Model Code(s) K1R,100A,99M,44A,942 17211 2LT,AR7,DD8,WPR,WPU,WPX,EN0,HO2, I08, MMF,RNW Vehicle Assembly Point (Location) Mexico TENNESSEE ORION PLANT Standard Warranty Terms (Years / Miles) 3 Year/36,000 mile 3 YEAR/36,000 MILES BUMPER TO BUMPER 3YR/36000 MILE Deductable ? Yes or No. If yes, how much? no NO NO Powertrain Warranty Terms (Years / Miles) 8 year/100,000 Battery 5 YEAR/60,000 MILES 5YR/100,000 MILE Deductable ? Yes or No. If yes, how much? no NO NO EPA Rating (City/Hwy) TBA 124/112/99 N/A Delivery Time A.R.O. (days) 150 60-85 DAYS 90-150 Cut-off Date for Orders (if known), MM/DD/YYYY NA 8/1/2021 TBD Contract Price Per Vehicle (including Transportation) $43,499 $34,984 $29,798 Optional Equipment List Price Contract Price Mfg Order Code List Price Contract Price Mfg Order Code List Price Contract Price Mfg Order Code Pkg # 1 Additional programmed Remote Key FOB, with working key $512 $270 $400 $395 IGKY Pkg # 2 Cost of non-standard colors $600 Various $410 $370 $400 $395 GDL,GLL,GPJ Pkg # 3 DC Fast Charging Capability N/A $1,690 $1,496 F01 $750 $745 CBT % Savings off accessories (Limit $9,999) $0 12% % Savings off dealer list - all other options 0% 12% % off available prior year model 0% N/A RELATED DOCUMENT #2: PORTER NISSAN AND INFINITI QUOTE Purchase Agreement Bill George Porter Nissan and Infiniti 303 E Cleveland Ave Newark, DE 19711 Buyer Co-Buyer Vehicle City Of Newark 2021 Nissan LEAF S PLUS JEFF MARTINDALE VIN: 220 S MAIN ST Stock #: NEWARK, DE 19711 Mileage: D: (302) 366-7000, E: (443) 866-2190 Color: Purchase Details Accessories: $0.00 Service Contract: $0.00 GAP: $0.00 Government Fees: $20.00 Clerical and $0.00 Messenger Expense: Total Taxes: $0.00 Total Sales Price: $39,710.00 Trade Allowance: $0.00 Trade Payoff: $0.00 Trade Equity: $0.00 Rebate: $10,000.00 Cash Down: $0.00 Cash Price: $29,710.00 X X Customer Signature Manager Signature Date Date Disclaimer: Printed 4/12/21 1:36 PM Payment subject to credit approval. First payment due on delivery on all leases. .
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