HomeMy WebLinkAboutStaff Report 357-08City of Palo Alto
City Manager’s Report
9
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE:SEPTEMBER 8, 2008 CMR:357:08
SUBJECT:ADOPTION OF A BUDGET AMENDMENT ORDINANCE FOR THE
FISCAL YEAR 2008-09 TO PROVIDE AN ADDITIONAL
APPROPRIATION OF $2~)0,000 TO VEHICLE REPLACEMENT FUND,
CAPITAL IMPROVEMENT PROGRAM PROJECT, VR-08000,
APPROVAL OF A PURCHASE ORDER WITH PETERSON TRACTOR
COMPANY IN AN AMOUNT NOT TO EXCEED $374,720 FOR THE
PURCHASE OF FOUR BACKHOE/LOADERS AND APPROVAL OF A
PURCHASE ORDER WITH PETERSON TRACTOR COMPANY IN AN
AMOUNT NOT TO EXCEED $249,497 FOR THE PURCHASE OF ONE
WASTE-HANDLING WHEEL LOADER
RECOMMENDATION
Staff recommends that Council:
Adopt the attached Budget Amendment Ordinance (BAO) in the amount of $200,000
(Attachment A) to provide an additional appropriation to the Vehicle Replacement Fund,
Capital Improvement Program (CIP) Project, Scheduled Vehicle and Equipment
Replacements, VR-08000, for the purchase of a waste-handling wheel loader.
Approve and authorize the City Manager or his designee to execute a purchase order with
Peterson Tractor Company in the amount of $374,720 for the purchase of four
backhoe/loaders.
Approve and authorize the City Manager or his designee to execute a purchase order with
Peterson Tractor Company in the amount of $249,497 for the purchase of one waste-
handling wheel loader.
DISCUSSION
Backhoe/Loaders
Vehicle Replacement Fund CIP Projects VR-07800, VR-08000 and VR-09000 authorize the
replacement of four backhoe/loaders. Three of these backhoe/loaders are at the end of their
useful life. The fourth one is scheduled for replacement in 2008-09, however it has not yet
CMR:357:08 Page 1 of 3
accumulated enough operating hours to qualify for replacement. Since the fourth backhoe/loader
is due for replacement later this fiscal year, staff feels it would be cost effective for it to be
replaced early and added to the Municipal Services Center equipment pool. Bacldaoeiloaders are
used heavily in both Utilities and Public Works field operations; having a spare backhoe/loader
available in the equipment pool will greatly reduce the impact to those operations when assigned
backhoe/loaders are down for service or maintenance. In addition, the availability of a spare
machine will reduce the need for equipment rentals when additional backhoe/loaders are needed
for heavy workloads or special projects.
A Request for Quotation (RFQ) for three backhoe/loaders was sent to four vendors on April 28,
2008. Bids were received from four qualified vendors on May 20, 2008, as listed on the attached
bid summary (Attachment B). Bids ranged from a high of $312,061 to a low bid of $241,339.
The bids received from Pap6 Equipment and Tractor Equipment Sales did not meet
specifications, so they could not be considered for award.
Staff has reviewed all bids submitted and recommends that the bid Submitted by Peterson Tractor
Company be accepted and that Peterson Tractor Company be declared the lowest responsible
bidder.
Waste-Handling Wheel Loader
Vehicle Replacement Fund CIP Project VR-08000 authorizes the replacement of a waste-
handling wheel loader to support the City’s composting program. This machine is used to load
greenwaste into a compost grinder and finished compost into trucks.
Due to the premature failure of a compost screener in August 2007, the funding, originally
allocated for the replacement of this wheel loader was used to purchase a new compost screener.
The screener was not scheduled for replacement until fiscal year 2009-10. Staff attempted to
defer the replacement of the wheel loader until fiscal year 2009~10, but it has also failed and is
not cost-effective to repair. A new wheel loader must now be purchased on an emergency basis.
Given that sufficient funding is not available for the purchase of this wheel loader in Vehicle
Replacement Fund CIP Project VR-08000, the purchase will be facilitated by a transfer from the
Refuse Fund Reserve to .the Vehicle Replac.ement Fund CIP in accordance with the attached
BAO (Attachment A).
This is a sole source purchase conducted in accordance with Section 2.30.360(b) of the Palo Alto
Municipal Code. Waste-handling wheel loaders are equipped with protective shielding and other
features that enable safe operation in landfill facilities. Only a few wheel loader manufacturers
offer waste-handling versions. Staff researched the availability of a replacement wheel loader
and determined that Peterson Tractor Company was the only supplier in the area that had a
machine meeting our requirements, and ready for immediate delivery. The machine that
Peterson Tractor intends to supply is of the same make and model (Caterpillar 950 series) as the
machine that is being replaced, so there will be minimal impact to staff from an operation and
maintenance standpoint. In addition, the purchase of the Caterpillar loader will allow staff to
transfer an existing "Tink" brand greenwaste bucket from the existing machine to the new
machine, saving approximately $30,000 on the cost of a new greenwaste bucket.
CMR:357:08 Page 2 of 3
Staff has checked references supplied by the vendor for previous contracts and has found no
significant complaints.
RESOURCE ]~N[PACT
In fiscal years 2006-07, 2007-08 and 2008-09, Council appropriated $3.6 million to CIP Vehicle
Replacement Fund Project VR-07800; $2.5 million to VR-08000, and $2.5 million to VR-09000
to cover the costs of scheduled replacements of vehicles and equipment. Because the funding
originally allocated in VR-08000 for the replacement of a wheel loader was used to purchase a
compost screener, the existing balance of the appropriation in VR-08000 is no longer sufficient
to allow for the purchase of a wheel loader.
A Budget Amendment Ordinance is necessary to transfer $200,000 from the Refuse Fund
Reserve to Vehicle Replacement CIP VR-08000 for the purchase of the waste-handling wheel
loader to be utilized in the composting program. The proposed BAO will reduce the balance of
the Refuse Fund Reserve to $828,000.
POL1[CY I[1V~PLICAT][ONS
Authorization of the contract does not represent any change to the City’s existing policy.
£NVI[RON1Vi[EN~AL REVI[£W
The equipment being supplied is in conformance with all applicable emissions laws and
regulations, and will emit significantly fewer exhaust emissions than the equipment being
replaced.
A~TAC]RMENTS
Attachment A:Budget Amendment Ordinance
Attachment B:Bid Summary
Attachment C:Certification of Nondiscrimination
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
K_EITH LAHAIE
Fleet Manager
GLENN ROBERTS
Director of Public Works
CMR:357:08 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 $200,000 TO CAPITAL IMPROVEMENT
PROGRAM (CIP) PROJECT VR-08000, 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 2007-08, the City Council appropriated
$2,500,000 for CIP Project VR-08000, Scheduled Vehicle and
Equipment Replacements (Project) to cover the costs of
replacements of existing City vehicles and equipment for
fiscal year 2007-08; and
C. Among the equipment included for replacement in fiscal
year 2007-08, is a waste-handling wheel loader that supports
the City’s composting program. The machine loads greenwaste
into a compost grinder and finished compost into trucks. Due
to a premature failure of another equipment, compost screener,
the amount originally appropriated for wheel loader was used
to purchase anew compost screener. Staff planned to defer the
replacement of the wheel loader until fiscal year 2.009-10, but
the equipment failed and is not cost-effective to repair. A
new wheel loader is needed for the City composting program;
and
D. An additional appropriation of $200,000 is needed for
the Project. The Refuse Fund Reserve will provide the
necessary funding; and
E. City Council authorization is needed to amend the
2008-09 budget to make available the funds required for CIP
Project VR~08000, Scheduled Vehicle and Equipment Replacements.
SECTION 2. The amount of Two Hundred Thousand Dollars
($200,000) is hereby transferred to the Vehicle Replacement
Fund and the Refuse Fund is hereby reduced by the same amount
leaving a remaining balance of Eight Hundred Twenty-Eight
Thousand Dollars ($828,000).
SECTION 3. ~he sum of Two Hundred Thousand Dollars
($200,000) is hereby appropriated to CIP Project VR-08000,
Scheduled Vehicle and Equipment Replacements.
SECTION 4. 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 5. As provided in Section 2.04.330 of the Palo
Alto Municipal Code, this ordinance shall become effective upon
adoption.
SECTION 6. The Council of the City of Palo Alto hereby
finds that this project is exempt from the provisions of the
California Environmental Quality Act, and therefore, no
environmental i~pact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
Director of Public Works
Director of Administrative
Services
EXHIBIT A
SCHEDULED VEN CLE AND EQUIPMENT
REPLACE ENTS (VRo08000)
Description: This project will involve scheduled replacement of existing
City fleet vehicles and equipment for the 2007-08 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, helps to maintain or even increase the productivity of
client departments, and allQ~ws the City to take advantage of new
technoIogy.
Supplemental Information: 32 vehicles are scheduled for replacement
in 2007-08, including 12 vehicles in the General Fund at a cost of
$1,448,000, and 20 vehicles in the Enterprise Funds at a cost of $1,052,000.
The vehicle replacement schedule includes the following quantities and
vehicle types: 4 police patrol vehicles; 2 pickup trucks and vans; 1
miscellaneous light truck; 3 fire apparatus; 1 street sweeper; 3 medium/
heavy-duty trucks; 6 miscellaneous equipment and 12 trailers.
Significant purchase include: 3 front-line fire engines ($1,200,000); patch
truck ($165,000); large wheel loader ($200,000); leaf packer truck
($175,000).
ClP FACTS:
® New
¯ Timeline: FY 2007-2008
¯ Managing Department: Public Works
¯ Comprehensive Plan: Policy N-26,
Program N-41
, Board/Commission Review: PTC
IMPACT ANALYSIS:
o Operating: Ongoing maintenance and
replacement costs.
PY Budget
PY Actuals as of 06/30/2008
$2,500,000
$77,584
Pre-Design Costs
Design Costs
Construction Costs
Other $200,000
~otal Budget ReqUest $200~000 $200,000
$200;0oo
Revenues:
Source of Funds:
$200,000 $200,000
Vehicle Replacement Fund with the following reimbursements: Electric Fund(S45,000); Gas
Fund(S265,000); General Fund(S1,413,000); Refuse Fund(S645,000); Storm Drainage
Fund(S50,000); Wastewater Collection Fund(S172,000); Wastewater Treatment
Fund(S35,000); Water Fund(S75,000)
City qi~Palo Alto
2008-09 Budget
ATTACHNIENT B
0
Z
Z0
0
ATTACHMENT C
CERTIFICATION OF NONDISCRIMINATION SECTION II
Project:2008 model Backhoe/loader
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.
Title of Officer Signing: "~e._h~J,~’-~"-
Signature:~ ~ ~
DATE:
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