HomeMy WebLinkAboutStaff Report 1491City of Palo Alto (ID # 1491)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 5/2/2011
May 02, 2011 Page 1 of 4
(ID # 1491)
Summary Title: Award of Purch Order for Forklift and Walk-In Van
Title: Adoption of a Budget Amendment Ordinance in the Amount of $135,618
to Fund the Purchase of a Walk-In Van and a Forklift; Approval of Purchase
Orders with 1) Golden Gate Truck Center in an Amount Not to Exceed $80,726
for the Purchase of a Walk-In Van; and 2) Big Joe Handling Systems in an Amount
Not to Exceed $54,892 for the Purchase of a Forklift (Scheduled Vehicle and
Equipment Replacement Capital Improvement Program Project VR-11000)
From:City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1.Approve the attached Budget Amendment Ordinance (BAO) in the amount of $135,618
(Attachment A) to provide an appropriation for the purchase of a Walk-in Van and a
Forklift;
2.Approve and authorize the City Manager to execute a purchase order with Golden Gate
Truck Center in the amount of $80,726 for the purchase of a Walk-In Van; and
3.Approve and authorize the City Manager to execute a purchase order with Big Joe
Handling Systems in the amount of $54,892 for the purchase of an 8,000 pound Forklift.
DISCUSSION
The vehicle and equipment replacement policy described in City Policy and Procedures 4-1
(Vehicle and Equipment Use, Maintenance, and Replacement), provides for the on-going
replacement of City fleet vehicles and equipment. Replacements are scheduled using
guidelines based on age, mileage accumulation, and obsolescence.
Walk-In Van
The City’s fleet currently includes a number of walk-in (step) vans, which are used for
various purposes by both the Utilities and Administrative Services departments. The
van that is the subject of this acquisition (#1248) is used by the Warehouse Section of
the Administrative Services Department. Vehicle #1248 is assigned to Class 05 (light
trucks 6,000 –11,000 pounds gross vehicle weight). Policy 4-1 prescribes a replacement
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interval for Class 05 vehicles of eight years or 80,000 miles. The existing replacement
guidelines are outdated and will be extended in the next revision to the Policy. Modern
light trucks are more reliable than their predecessors and should last at least ten years
or 100,000 miles without requiring major repairs. The van that is being used by the
Stores section is 13 years old and has accumulated 175,000 miles. In addition to
exceeding the criteria for age and mileage, it has become less than adequate for its
intended use. Over the years, Stores has been tasked with transferring increasing
amounts of library books between branches. These books and some other types of
cargo (such as pallets of paper) are very heavy, and frequently exceed the carrying
capacity of the existing vehicle. The replacement vehicle will be constructed on a
medium-duty (14,000 pound gross vehicle weight) chassis, and will have adequate
carrying capacity for existing and future needs. In addition, it is designed to last at least
15 years.
8,000 Pound Forklift
The City’s fleet currently includes six forklifts, which are used for various purposes by
Utilities, the Water Quality Control Plant and Administrative Services. The forklift that is
the subject of this acquisition (#4617) is one of two used by the Water Quality Control
Plant. Unit #4617 is used to move bags of barscreen screenings, bins of grit, and for
other general material handling duties at the plant. Policy 4-1 prescribes a replacement
interval for forklifts of 10-15 years. The existing replacement guidelines for forklifts are
adequate, since equipment life can vary widely depending on utilization and whether
the equipment is used indoors or outdoors. Typically, forklifts used outdoors will
deteriorate from weathering before they experience substantial wear and tear from
usage. Unit #4617 is 19 years old and is currently out of service due to its need for
major repairs. The Water Quality Control Plant is renting a forklift until the replacement
unit arrives. The replacement forklift will be identical in size and capacity to the unit
being replaced.
Audit of Vehicle Utilization and Replacement
Both of these purchases are being conducted with full consideration for the recent Audit of
Vehicle Utilization and Replacement. The vehicles being replaced through this purchase have
on average greatly exceeded the minimum mileage accumulation of 2,500 miles or 50 usage
hours annually. .
The Fleet Review Committee (FRC) approved the replacement of the Walk-In Van on
November 17, 2010 and the forklift on March 11, 2011 in accordance with the audit
recommendations. The approval was based on:
·An examination of each vehicle’s current usage;
·An analysis of each vehicle’s operating and replacement costs;
·A comparison of the age, mileage, operating cost and performance of
each vehicle with others in the class; and
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·An analysis of alternatives to ownership, such as mileage
reimbursement; pooling/sharing; the reassignment of another
underutilized vehicle, or renting.
The FRC determined that there are no alternatives to outright replacement. The walk-in van is
used on a continuous daily basis for the delivery of supplies and materials. The forklift is used
on a daily basis at the Water Quality Control Plant and is not easily transportable to other sites.
These factors preclude their assignment to a motor pool, and the application in which each is
employed rules out the use of a private vehicle with mileage reimbursement. They are each
used on-a-continuous daily basis, or are at remote locations, so there are no opportunities for
sharing. There are no similar, underutilized vehicles available to use as replacements for these
vehicles. Because these vehicles are used continuously throughout the year, renting them
would not be a cost-effective option.
Bidding and Selection Process
Walk-In Van
A Request for Quotation (RFQ) for a Walk-In Van was sent to four vendors on February 7, 2011.
Bids were received from two qualified vendors on March 1, 2011, as listed on the attached bid
summary (Attachment B). Bids ranged from a high of to $78,907 to a low bid of $66,671. The
total bid price did not include the cost of an optional cargo ramp ($1,819), which will be
included in the final purchase order.
The bid from Diamond Sales and Service was the lowest; however, the vehicle they proposed
did not meet specifications and the proposal was rejected on that basis.
Staff has reviewed all bids submitted and recommends that the bid submitted by Golden Gate
Truck Center be accepted and that Golden Gate Truck Center be declared the lowest
responsible bidder.
Staff has checked references supplied by the vendor for previous contracts and has found no
significant complaints.
Forklift
A Request for Quotation (RFQ) for an 8,000 pound forklift was sent to five vendors on
March 11, 2011. Bids were received from five qualified vendors on March 22, 2011, as listed on
the attached bid summary (Attachment B). Bids ranged from a high of to $67,775 to a low bid
of $54,892.
Staff has reviewed all bids submitted and recommends that the bid submitted by Big Joe
Handling Systems be accepted and that Big Joe Handling Systems be declared the lowest
responsible bidder.
May 02, 2011 Page 4 of 4
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Staff has checked references supplied by the vendor for previous contracts and has found no
significant complaints.
Resource Impact
The attached Budget Amendment Ordinance will provide for the transfer of funding from the
Vehicle Replacement Fund Reserve into the current year’s Scheduled Vehicle and Equipment
Replacement CIP (VR-11000).
Policy Implications
Authorization of the contract does not represent any change to the existing policy.
Environmental Review
The vehicles being supplied are in conformance with all applicable emissions laws and
regulations. Accordingly, this purchase is exempt from the California Environmental Quality Act
under the CEQA guidelines (Section 15061).
Attachments:
·BAO -VR11000 Fork Lift (DOC)
·Bid Summary -Walk-in van and forklift (PDF)
Prepared By:Keith LaHaie, Fleet Manager
Department Head:J. Michael Sartor, Interim Director
City Manager Approval: James Keene, City Manager
Attachment A
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 2011 TO PROVIDE
AN ADDITIONAL APPROPRIATION OF $135,618 TO CAPITAL
IMPROVEMENT PROGRAM PROJECT NUMBER VR-11000, SCHEDULED
VEHICLE AND EQUIPMENT REPLACEMENT FOR THE PURCHASE OF A
WALK-IN VAN AND A FORKLIFT
The Council of the City of Palo Alto does ordain as follows:
SECTION 1. 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 28, 2010 did adopt a budget for fiscal year 2011; and
B.City policy on vehicle and equipment replacement
provides for the on-going replacement of City fleet vehicles
and equipment.Replacements are scheduled using guidelines
based on age, mileage accumulation, and obsolescence.The
City’s fleet currently includes a number of walk-in (step)
vans, which are used for various purposes by both the
Utilities and Administrative Services departments. The van
that is the subject of this acquisition (#1248) is used by the
Warehouse Section of the Administrative Services Department.
The van that is being used by the Stores section is 13 years
old and has accumulated 175,000 miles; and
C.The City’s fleet currently includes six forklifts,
which are used for various purposes by Utilities, the Water
Quality Control Plant and Administrative Services. The
forklift that is the subject of this acquisition (#4617) is
one of two used by the Water Quality Control Plant. Unit
#4617 is 19 years old and is currently out of service due
to its need for major repairs. The Water Quality Control
Plant is renting a forklift until the replacement unit
arrives; and
D.The Fleet Review Committee (FRC) approved the
replacement of the Walk-In Van on November 17, 2010 and the
forklift on March 11, 2011 in accordance with the audit
recommendations; and
E.A Request for Quotation (RFQ) for a Walk-In Van was
sent to four vendors on February 7, 2011. Bids were received
from two qualified vendors on March 15, 2011.Staff has
reviewed all bids submitted and recommends that the bid in the
amount of $80,726 submitted by Golden Gate Truck Center will
be accepted; and
F. A Request for Quotation (RFQ) for an 8,000 pound
forklift was sent to five vendors on March 11, 2011. Bids
were received from five qualified vendors on March 22, 2011.
Staff has reviewed all bids submitted and recommends that the
bid in the amount of $54,892 submitted by Big Joe Handling
Systems be accepted;and
G. City Council authorization is needed to amend the 2011
budget as hereinafter set forth.
SECTION 2.The sum of One Hundred Thirty Five Thousand
Six Hundred Eighteen Dollars ($135,618) is hereby appropriated
to CIP Project Number VR-11000.
SECTION 3.The Vehicle Replacement Fund Reserve is hereby
reduced by One Hundred Thirty Five Thousand Six Hundred
Eighteen Dollars ($135,618) to Five Million Seven Hundred
Twenty Thousand One Hundred Fifteen Dollars ($5,720,115).
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 vehicles being purchased are in compliance
with all applicable emissions laws and regulations.
Accordingly, this purchase is exempt from the California
Environmental Quality Act under the CEQA guidelines (Section
15061).
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
Attachment B
BID SUMMARY
Walk-In Van
RFQ140129
Golden Gate Truck Center Bid Total $78,907.35
Diamond Sales and Service Bid Total $66,671.43*
* Proposal did not meet specifications
BID SUMMARY
8,000 Pound Forklift
RFQ140670
Sunrise Forklift, Inc. Bid Total $67,775.42
Cromer Equipment Bid Total $66,433.76
Komatsu Forklift of Northern California Bid Total $62,892.25
Toyota Material Handling Bid Total $61,520.86
Big Joe California North Bid Total $54,891.57