HomeMy WebLinkAboutStaff Report 3292
City of Palo Alto (ID # 3292)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 1/14/2013
City of Palo Alto Page 1
Summary Title: BAO and Award of Contract for Vehicle Replacements
Title: Adoption of a Budget Amendment Ordinance in the Amount of
$182,902 to Fund the Purchase of Two Ford F-250 Pickup Trucks, One
Chevrolet Express 350 Cargo Van, Two Regenerative Air Sweepers and
$16,000 for Vehicle Outfitting Work and Approval of Purchase Orders with 1)
Towne Ford in an Amount Not to Exceed $52,146 for Purchase of Two Ford F-
250 Pickup Trucks; 2) Courtesy Chevrolet in an Amount Not to Exceed
$39,756 for Purchase of One Chevrolet Express 3500 Cargo Van; and 3)
Municipal Maintenance Equipment in an Amount Not to Exceed $539,646 for
Purchase of Two Regenerative Air Sweepers; (Capital Improvement Program
project VR-13000)
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1. Approve the attached Budget Amendment Ordinance (BAO) in the amount
of $182,902 (Attachment A) to provide an appropriation for the purchase of
replacement vehicles and any additional work needed to make vehicles
ready for service;
2. Approve and authorize the City Manager or designee to execute a purchase
order with Towne Ford Sales in the amount of $52,145.88 for the purchase
of two Ford F250 pick-up trucks;
3. Approve and authorize the City Manager or designee to execute a purchase
order with Courtesy Chevrolet in the amount of $39,755.98 for the
purchase of a Chevrolet 3500 van;
4. Approve and authorize the City Manager or designee to execute a purchase
order with Municipal Maintenance Equipment in the amount of
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$539,645.74 for the purchase of two street sweepers; and
5. Approve and authorize $26,354 to add tool boxes and other features
needed to outfit the vehicles.
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.
Audit of Vehicle Utilization and Replacement
These purchases are being conducted with full consideration for the Audit of
Vehicle Utilization and Replacement which was conducted by the City Auditor.
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. All purchases were brought before the Fleet Review Committee (FRC).
Discussion
The FRC has reviewed all of the vehicles proposed for replacement and has
authorized their replacement. The FRC approved the replacement of these
vehicles 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
An analysis of alternatives to ownership, such as mileage
reimbursement; pooling/sharing; the reassignment of another
underutilized vehicle, or renting; and
An assessment if a more cost effective type/style of vehicle can be
utilized.
Ford F250 Pick-up trucks (2 vehicles)
The first vehicle in this group will replace one pick-up truck that has already been
removed from the fleet because of expiring CNG fuel tanks. That vehicle is used
by the Supervising Inspector of Public Works who travels throughout the City on a
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daily basis inspecting all construction projects for compliance with City policies.
The second vehicle is to be used by the Utilities Department and is a scaled down
replacement for an existing utility van. Staff is recommending the elimination of a
larger walk-in van and replacement with a smaller and more efficient pick- up
truck. The van being replaced is a 1992 model with 85,000 miles. Maintenance
cost per mile on this van has doubled in the last year because of the age of the
vehicle. This vehicle exceeds the replacement criteria for both mileage and age.
Chevrolet 3500 van
A Utilities Department CNG van with an odometer reading of 130,000 miles was
removed from the fleet on November 1st because of expiring fuel tanks. This
vehicle exceeds the replacement criteria for both mileage and age. Staff
recommends the purchase of another CNG van to replace this vehicle. Since
there was no replacement vehicle available when the CNG tank on the van
expired, the Utilities Department began using the only available pick-up truck in
the City vehicle pool. Not having a pick-up truck in the Municipal Services Center
pool has proved problematic in the ability to meet Public Works and Utilities
Department operational needs. Replacing this vehicle will restore a CNG van used
by Utilities and will also allow for the much needed return of a pick-up truck to
the pool so that it is once again available for use by maintenance crews.
Street Sweeper (2 vehicles)
Due to the complexity of street sweeping equipment the Vehicle Replacement
Policy identifies 7-years or 60,000 miles as the recommended replacement
criteria based on usage, operational costs, and downtime. The two sweepers
recommended for replacement are both well beyond the replacement guidelines.
The funding for these two street sweepers was approved as part of CIP VR-13000.
The process of street sweeping requires the operator to clean at speeds of under
10-miles per hour. Multiple moving parts within the sweeping equipment
combined with the slow speed and stop and go nature of the operation results in
significant wear on the equipment. The wear and tear of 60,000 miles put on
street sweepers can equate to roughly double the number miles of wear on an
average car.
The FRC determined that there are no alternatives to outright replacement of the
vehicles included in this report. They are each used on a continuous daily basis,
are at remote locations, and/or are already being used as part of the shared pool
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system. There are no similar, underutilized vehicles available to use as
replacements for these vehicles.
Funding for these two street sweepers were approved by Council during the FY
2013 budget adoption in Capital Improvement Program project VR-13000.
Solicitations were sent out and the bids that were received were $64,646 over the
projected replacement costs for the street sweepers. Approval of the BAO
(Attachment A) will provide adequate funding to purchase the two street
sweepers in CIP VR-13000 and provide funding for additional equipment.
Funding in the amount of $26,354 for additional equipment to outfit all of the
vehicles described above is also being requested.
Bidding and Selection Process
Ford Pick-up (2 vehicles)
A Request for Quotation (RFQ) for two Ford pick-up trucks was sent to four
vendors on December 5, 2012. Bids were received from one qualified vendor on
December 18, 2012, as listed on the attached bid summary (Attachment B).
Staff has reviewed all bids submitted and recommends that the bid submitted by
Towne Ford be accepted and that Towne Ford be declared the lowest responsible
bidder.
Staff has checked references supplied by the vendor for previous contracts and
has found no significant complaints.
Chevrolet 3500 CNG van
A Request for Quotation (RFQ) for a Chevrolet CNG Van was sent to three vendors
on December 5, 2012. Bids were received from two qualified vendors on
December 18, 2012, as listed on the attached bid summary (Attachment B). Bids
ranged from a high of to $39,755.98 to a low bid of $37,465.73.
Staff has reviewed all bids submitted and recommends that the bid submitted by
Courtesy Chevrolet be accepted and that Courtesy Chevrolet be declared the
lowest responsible bidder.
Staff has checked references supplied by the vendor for previous contracts and
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has found no significant complaints.
Street Sweeper (2 vehicles)
A Request for Quotation (RFQ) for two street sweepers was sent to three vendors
on September 28, 2012. Bids were received from one qualified vendor on
October 16, 2012, as listed on the attached bid summary (Attachment B).
Staff has reviewed all bids submitted and recommends that the bid submitted by
Municipal Maintenance Equipment Inc. be accepted and that Municipal
Maintenance Equipment Inc. 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
Funding for the two street sweepers was included in the Vehicle Replacement
Fund FY 2013 Capital Improvement Program project VR-13000 however
solicitations were sent out and the bids that were received were $64,646 over the
projected replacement costs for the street sweepers. A BAO is being requested to
transfer funding for this amount, funding for two trucks and one van as well as
$26,354 for additional equipment to the vehicles described above.
Funding for Street Sweepers $ 64,646
Two Ford Trucks $ 52,146
One Van $ 39,756
Outfitting $ 26,354
Total BAO $182,902
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-13000). The Vehicle
Replacement Fund Reserve will decrease to $8,457,077 as a result of this
appropriation.
Policy Implications
Authorization of the contract does not represent any change to the existing
policy. Purchase of these vehicles supports Comprehensive Plan(s) N5, N40 and
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N41 by supporting the use of alternative fuel vehicles and also removing older,
more polluting vehicles from the roadways and replacing them with newer, more
efficient ones.
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 B: Bid Summary (DOC)
Attachment A: BAO- VR-13000 Pick-up trucks-van-street sweepers (DOC)
Attachment B
ATTACHMENT B
BID SUMMARY
Ford F-250XL Supercab 4x2 Pickup Truck
RFQ148197
Towne Ford Sales Bid Total $52,145.88
Chevrolet Express 3500 CNG Powered Cargo Van
RFQ148263
Courtesy Chevrolet Bid Total $39,755.98
Winner Chevrolet Bid Total $37,465.73
Regenerative Air Sweepers
RFQ147861
Muncipal Maintenance Equipment Bid Total $539,645.74
ORDINANCE NO.xxxx
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 2013 TO
PROVIDE AN ADDITIONAL APPROPRIATION OF $182,902 TO
CAPITAL IMPROVEMENT PROGRAM PROJECT NUMBER VR-
13000, SCHEDULED VEHICLE AND EQUIPMENT REPLACEMENTS
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 18, 2012 did adopt a budget for fiscal year 2013; 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 replacement
intervals using guidelines based on age, mileage accumulation,
and obsolescence; and
C. The Fleet Review Committee (FRC) approved the purchase
of two Ford F250 pick-up trucks for $52,146 to replace one
pick-up truck and one utility van. Funding for the two pick-
up trucks was not included in VR-13000 Scheduled Vehicle and
Equipment Replacements; and
D. The FRC approved the purchase of a Chevrolet 3500 CNG
van for $39,756 to replace an existing CNG van. Funding for
this van was not included in CIP Project VR-13000 Scheduled
Vehicle and Equipment Replacements; and
E. The FRC approved the purchase of two street sweepers
for $539,646 to replace two existing street sweepers. Funding
of $475,000 for the two street sweepers was originally
included in CIP Project VR-13000 Scheduled Vehicle and
Equipment Replacements. An additional $64,646 is needed
because the bids received were $64,646 over the projected
replacement costs of the street sweepers.
F. Funding of $26,354 is needed to outfit the vehicles
described above; and
G. These purchases are being conducted with full
consideration for the Audit of Vehicle Utilization and
Replacement which was conducted by the City Auditor; and
H. City Council authorization is needed to amend the 2013
budget as hereinafter set forth.
SECTION 2. The sum of One Hundred Eighty-Two Thousand
Nine Hundred Two Dollars ($182,902) is hereby appropriated to
CIP Project Number VR-13000.
SECTION 3. The Vehicle Replacement Fund Reserve is hereby
reduced by One Hundred Eighty-Two Thousand Nine Hundred Two
Dollars ($182,902) to Eight Million Four Hundred Fifty-Seven
Thousand Seventy-Seven Dollars ($8,457,077).
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
Senior Assistant City
Attorney
Director of Public Works
Director of Administrative
Services