HomeMy WebLinkAboutStaff Report 2461City of Palo Alto (ID # 2461)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 3/5/2012
March 05, 2012 Page 1 of 4
(ID # 2461)
Summary Title: BAO & Purchase Order for Street Sweeper
Title: Adoption of a Budget Amendment Ordinance in the Amount of $276,083
to Fund the Purchase of a Street Sweeper; and Approval of a Purchase Order
with Owen Equipment Sales in an Amount Not to Exceed $262,936 for the
Purchase of a Street Sweeper (Scheduled Vehicle and Equipment Replacement
Capital Improvement Program Project VR-11000)
From:City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1.Adopt the attached Budget Amendment Ordinance (BAO) in the amount of
$276,083 (Attachment A) to provide an appropriation for the purchase of a street
sweeper;
2.Approve and authorize the City Manager to execute a purchase order with Owen
Equipment Sales in the amount of $262,936 for the purchase of a street
sweeper; and
3.Authorize the City Manager or his designee to negotiate and execute one or
more change orders to the purchase order with Owen Equipment Sales for
related, additional but unforeseen work which may develop during the project,
the total value of which shall not exceed $13,147 (five percent).
Background
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.
The City’s fleet currently includes six large street sweepers. Two are mechanical broom
style sweepers and four are regenerative air (vacuum) style sweepers. Policy 4-1
prescribes a replacement interval for mechanical sweepers of six (6) years or 60,000
miles and for air sweepers of seven (7) years or 70,000 miles. The existing
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replacement guidelines for mileage is not the best method and will be changed to
reflect operating hours in the next revision to the Policy. Because sweepers spend most
of their operating time at very slow speeds, they do not accumulate much mileage.
However, sweepers typically run a full shift (nine hours) nearly every day so they do
accumulate a significant amount of operating hours. Street sweeping is a mechanically
severe service operation. Sweepers have a large number of moving parts that are
continuously subjected to abrasive debris. Because of this, street sweepers generate a
large amount of maintenance work, and have relatively short service lives.
The street sweeper that is being replaced through this purchase is a 2000 model Elgin
Pelican three-wheel street sweeper with more than 7,000 operating hours. The
sweeper that is to be purchased is a four-wheel truck-mounted sweeper. Historically,
the City has operated several three-wheel sweepers due to the preponderance of cul-
de-sacs within the City’s service area. While three-wheel sweepers have traditionally
been more maneuverable than four-wheel truck-mounted sweepers; three-wheel
sweepers have limited debris capacity, and lack the power to sweep in the foothill
areas. Current model truck-mounted (four wheel) sweepers are now maneuverable
enough to sweep cul-de-sacs effectively, and have the power and carrying capacity that
are needed for efficient sweeping throughout the City. In addition, the engine that is
installed in the current model Elgin Pelican does not meet California Air Resources
Board emissions standards for on-highway vehicles, so it would not be possible to
purchase another Pelican in any case.
Discussion
This purchase is being conducted with full consideration of the recent Audit of Vehicle
Utilization and Replacement. The audit did not include a review of the City’s inventory
of street sweepers, and street sweepers typically greatly exceed minimum utilization
requirements of 50 operating hours annually.
The Fleet Review Committee (FRC)approved the replacement of this street sweeper on
October 20, 2010, in accordance with the audit recommendations. The approval was
based on:
·An examination of the vehicle’s current usage;
·An analysis of the vehicle’s operating and replacement costs;
·A comparison of the age, mileage, operating cost and performance of
the vehicle with others in the class; and
·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. Street
sweepers are used for a very specialized task, and are unsuitable for any purpose other
than street sweeping. This precludes their assignment to a motor pool, and rules out
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the use of a private vehicle with mileage reimbursement. They are each used by a
single operator on a continuous daily basis, so there are no opportunities for sharing.
There are no similar, underutilized vehicles available to use as replacements for this
vehicles. Renting a street sweeper would not be a cost-effective option because street
sweepers are used continuously throughout the year.
Bidding and Selection Process
A Request for Quotation (RFQ) for a truck-mounted broom sweeper was issued on
December 14, 2011. Bids were received from two qualified vendors on January 3, 2012
as listed on the attached bid summary (Attachment B). Bids ranged from a high of to
$266,562.38 to a low bid of $253,604.85. Staff has also elected to purchase two
optional bid items –a debris body liner ($4,285) and an automatic lubrication system
($4,335). The debris body liner will extend the life of the debris body by protecting its
interior from impacts and abrasion. The automatic lubrication system will eliminate the
need for sweeper operators to perform daily lubrication; reducing the time spent on
maintenance and increasing the time that operators spend on sweeping routes.
Staff has reviewed all bids submitted and recommends that the bid submitted by Owen
Equipment Sales be accepted and that Owen Equipment Sales 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
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). The Vehicle Replacement Fund Reserve
will decrease to $6,944,858.
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:
·Attachment A-Budget Amendment Ordinance (PDF)
·RFQ 144400 Bid Summary (PDF)
March 05, 2012 Page 4 of 4
(ID # 2461)
Prepared By:Keith LaHaie, Fleet Manager
Department Head:J. Michael Sartor, Director
City Manager Approval: ____________________________________
James Keene, City Manager
Attachment A
ORDINANCE NO.xxxx
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 2012 TO
PROVIDE AN ADDITIONAL APPROPRIATION OF $276,083 TO
CAPITAL IMPROVEMENT PROGRAM PROJECT NUMBER VR-
11000, SCHEDULED VEHICLE AND EQUIPMENT REPLACEMENT
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 20, 2011 did adopt a budget for fiscal year 2012; and
B. City policy on vehicle and equipment replacement
provides for the on-going replacement of City fleet vehicles
and equipment. Specifically, Policy 4-1 prescribes a
replacement interval for mechanical sweepers of six years or
60,000 miles. However, operating hours accumulated has been
deemed a better measure for replacing street sweepers, and the
policy will be revised accordingly. The street sweeper that
needs be replaced (#4414) is a 2000 model Elgin Pelican three-
wheel street sweeper with more than 7,000 operating hours.
Also, the engine on this street sweeper does not meet
California Air Resources Board emission standards; and
C. The Fleet Review Committee (FRC) approved the
replacement of this street sweeper on October 20, 2011, in
accordance with the audit recommendations; and
D. A Request for Quotation (RFQ) for a street sweeper was
issued on December 14, 2011. Bids were received from two
qualified vendors on January 3, 2012 and Owen Equipment Sales
was declared the lowest responsible bidder. The purchase price
of the street sweeper is $262,936. An additional amount of
$13,147 is needed to cover additional but unforeseen work
which may develop during the project; and
F. City Council authorization is needed to amend the 2012
budget as hereinafter set forth.
SECTION 2. The sum of Two Hundred Seventy-Six Thousand
Eighty-Three Dollars ($276,083) is hereby appropriated to CIP
Project Number VR-11000.
SECTION 3. The Vehicle Replacement Fund Reserve is hereby
reduced by Two Hundred Seventy-Six Thousand Eighty-Three
Dollars ($276,083) to Six Million Nine Hundred Forty-Four
Thousand Eight Hundred Fifty-Eight Dollars ($6,944,858).
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 vehicle being purchased is 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
BID SUMMARY
Truck Mounted Broom Sweeper
RFQ144400
Municipal Maintenance Equipment Bid Total $266,562.38
Owen Equipment Sales Bid Total $253,604.85