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HomeMy WebLinkAboutStaff Report 328-08TO: FROM: DATE: SUBJECT: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PUBLIC WORK~ AUGUST 47 2008 CMR:328:08 ADOPTION OF A BUDGET AMENDMENT ORDINANCE FOR THE FISCAL YEAR 2008-09 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $80,000 TO VEHICLE REPLACEMENT FUND, CAPITAL IMPROVEMENT PROGRAMPROJECT VR-07800, AND APPROVAL OF A PURCHASE ORDERWITH COAST COUNTIES TRUCK AND EQUIPMENT COMPANYIN AN AMOUNT NOT TO EXCEED $7447138 FOR THE PURCHASEOF TWO 10-12 YARD DUMP TRUCKS, A 3,600-GALLON WATER TRUCK AND A TRANSFER DUMP TRUCK AND TRAILER SET 7 RECOMMENDATION Staff recommends that Council: Adopt the attached Budget Amendment Ordinance (BAO)in the amount of $80,000 (Attachment A) to provide an additional appropriation to Vehicle Replacement Fund, Capital Improvement Program (CIP) Project, Scheduled Vehicle and Equipment Replacements, VR-07800, for the purchase of a transfer dump truck mid trailer set (transfer dump). Approve and authorize the City Manager or his designee to execute a purchase order with Coast Counties Truck and Equipment Company in an amount not to exceed $744,138 for the purchase of two 10-12 yard dump trucks, a 3,600-ga!lon water truck, and the transfer dump noted in item 1 above. DISCUSSION Vehicle Replacement Fund CIP Project VR-07800 authorizes the replacement of three 10-12 yard dump trucks and a 3,600-gallon water truck. Each of these trucks is at the end of its useful life, and cannot meet current exhaust emissions standards without a costly emissions retrofit. Two of the dump trucks and the water mack will be replaced "in-kind"; the third dump truck will be upgraded to a transfer dump to provide additional load-carrying capacity for the in-house streets maintenance program. The $80,000 incremental cost of this upgrade will be funded by a transfer t~om the Streets Maintenance CIP Project PE-86070 to the Vehicle Replacement Fund CIP in accordance With the attached BAO. CMR:328:08 Page 1 of 3 The more expensive transfer dump is needed to accommodate the quantity of pavement spoils that will be generated by a self-loading asphalt grinding machine that was recently ordered and is expected to be in service by December 2008. Using a grinder to mill the asphalt is much more efficient than the current method .of breaking up the pavement and loading it in large chunks; however, because the grinder is more efficient, it will fill the streets crew’s existing 10-12 yard dump trucks much faster, necessitating many more trips to the dump site. The transfer dump, with its 30-yard capacity, will accommodate nearly three times the amount of material, which will significantly reduce the number of trips to the dump site. This will increase labor efficiency, reduce fuel consumption, and lower carbon emissions. In addition, the truck’s additional capacity will be very beneficial when material needs to be hauled out of the area subsequent to the closure of the City’s landfill. A Request for Quotation (RFQ) for medium duty tracks was sent to eight vendors on May 27, 2008. Bids were received from two qualified vendors on June 17, 2008, as listed on the attached bid summary (Attachment B). Bids ranged ~rom a high of $744,138 (for all bid items) to a low bid of $193,953 (for the water truck only). The bid for the water truck submitted by West-Mark did not meet specifications, so it could not be considered for award. Vendors not responding indicated that they did not submit a bid because they were to busy too respond. Staff has reviewed all bids submitted and recommends that the bid submitted by Coast Counties Truck and Equipment Company be accepted and that Coast Counties Truck and Equipment Company be declared the lowest responsible bidder. Staff has checked references supplied by the vendor for previous contracts and has found no significant complaints. RESOURCE IMPACT In fiscal year 2006-07, Council appropriated $3.6 million to CIPProject VR-07800 to cover the costs of scheduled replacements of vehicles and equipments. In the second quarter of fiscal year 2006-07, Counci! appropriated an additional $175,000 to this project to provide funding for the acquisition of a se!f-loading asphalt grinding machine to be used primarily for the street maintenance project. The existing balance o;f the appropriation is not sufficient to cover the increased cost of a dump truck and trailer set. A Budget Amendment Ordinance is necessary to move the appropriation of $80,000 from the Street Maintenance CIP PE-86070 to Vehicle Replacement CIP VR-07800 for the purchase of the transfer dump to be utilized in the street maintenance program. The proposed BAO has no impact on any reserve balance. POLICY IMPLICATIONS Authorization of the contract does not represent any change to the existing policy. ENVIRONMENTAL REVIEW This is not a project as defined in Section 21065 of the California Environmental Quality Act. The trucks being supplied are in conformance with all applicable emissions laws and regulations, and will emit significantly fewer exhaust emissions than the vehicles they are replacing. CMR:328:08 Page 2 of 3 ATTACHMENTS Attachment A: Budget Amendment Ordinance (includes Exhibit A: Attachment B: Bid Summary Attachment C: Certification of Nondiscrimination CIP page) PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: Fleet Manager GLENN S. ROBERTS Director of Public Works CMR:328:08 Page 3 of 3 ATTACHMENT A ORDINANCE NO. ORDINANCE OF THE- COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2008-09 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $80,000~ TO CAPITAL IMPROVEMENT PROGRAM (CIP) VR-07800, SCHEDULED VEHICLE AND EQUIPMENT REPLACEMENTS The Council of the City of Palo Alto does ordain as follows: SECTION i. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 9, 2008 did adopt a budget for fiscal year 2008-09; and B. In fiscal year 2006-07, the City Council appropriated $3,609,000 for CIP Project VR-07800(Project) to cover the costs of scheduled replacements of vehicle and equipments; and C. In the second quarter of the fiscal year 2006-07, the City Council appropriated an additional $175,000 to the Project to provide funding for the acquisition of a self-loading asphalt grinding machine to be used primarily for the street maintenance project; and D. A need for a transfer dump truck and trailer set had been identified for the Project. A transfer dump truck, with its 30- yard capacity, will accommodate nearly three times the amount of material, which will significantly reduce thenumber of trips to the dump site. This will increase labor efficiency, reduce fuel consumption, andsupports the City Council Top 4 Priorities on Environmental Protection; and E. This project was put out to bid; the low bid is higher than the amount available, and an additional funding of $80,000 is needed to award the bid of the Project; and F. The total additional appropriation of $80,000 will be funded by a transfer from Capital Improvement Program Project PE- 86070 Street Maintenance Project; and G. City Council authorization is needed to amend the 2008-09 budget to make available the funds needed for CIP Project VR- 07800, Scheduled Vehicle and Equipment Replacements. SECTION 2. The sum of Eighty Thousand Dollars ($80,000) is hereby appropriated to CIP Project VR-07800, Scheduled Vehicle and Equipment Replacements. SECTION 3. The appgopriation for CIP Project PE-86070, Street Maintenance is hereby reduced by Eighty Thousand Dollars ($80,000). SECTION 4. The transactions above will have no impact on the Capital Project Fund Infrastructure Reserve. SECTION 5. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 6. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 7. The Council of the City of Palo Alto hereby finds that this project is not a project as defined in Section 21065 California Environmental Quality Act, and therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager Senior Asst. City Attorney Director of Public Works Director of Administrative Services IP Description: Scheduled replacement of existing City fleet vehicles and equipment for the 2006-07 fiscal year. Justification: The ongoing replacement of City fleet vehicles and equipment is prescribed by City Policy and Procedures Section 4-01. The policy includes guidelines for these replacements based on age, mileage accumulation, and obsolescence. Timely replacement of vehicles lowers maintenance costs, insures the productivity of client departments, and allows advantage of new technology. Supplemental information: Fifty vehicles are scheduled for replacement in 2006-07, including 23 vehicles in the General Fund at a cost of $1,386,000; 26 vehicles in the Enterprise Funds at a cost of $2,196,000; and 1 vehicle in the Vehicle Replacement Fund at a cost of $27,000. The vehicle replacement schedule includes the following quantities and vehicle types: 11 sedans; 3 police patrol vehicles; 9 pickup trucks and vans; 2 miscellaneous light trucks; 3 fire apparatus; 3 street sweepers; 4 medium/heavy duty trucks; 12 miscellaneous equipment; and 3 trailers. ClP FACTS: ~ Continuing ¯ Timeline: FY 2007-2009 ¯Overall Project Completion: 41% ¯Percent Spent: 41% °Managing Department: Public Works ° Comprehensive Plan: This project furthers Policy N-26; Program N-41 IMPACT ANALYSIS: ° Operating: Ongoing maintenance and replace- ment costs Significant purchases include two fire engines ($780,000), two large loaders for the composting operation ($400,000), two large street sweepers ($300,000), a leaf packer truck ($175,000), a large aerial device ($200,000), and a patch truck ($165,000). PY Budget $3,784,000 PY Actuals as of 06/30/2008 $1,554,764 Pre-Design Costs Design Costs Construction Costs Other $80,000 $80,000 Revenues: Source of Funds: $80,000 Transferfrom CIP Pr~ect PE-86070(Street Maintenance)$8O (?it3"; qf Palo Alto 2008-09 Budget ATTACHMENT B CERTIFICATION OF NONDISCRIMINATION SECTION II Project:Medium Duty Trucks -Equipped for a Water Truck, Dump Body, and Transfer Dump Body and Trailer Set Certification of Nondiscrimination: As suppliers of goods and/or services to the City of Palo Alto in excess of $5,000, the firm, contractor or individual(s) listed below certify that: they do not and in the performance of this contract they will not discriminate in employment of any person because of race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person; and further certify that they are in compliance with all Federal, State and local . directives and executive orders regarding nondiscrimination in employment. 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