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HomeMy WebLinkAboutStaff Report 2303-1143CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, March 27, 2023 Council Chambers & Hybrid 5:00 PM     Agenda Item     9.Approval of a Purchase Order with Interstate Truck Center in an Amount Not to Exceed $297,244 for the Purchase of Two 2023 International CV Chipper Body Trucks, Utilizing a Cooperative Purchase Agreement, Funded by Capital Improvement Program Project VR- 23000 City Council Staff Report Report Type: ACTION ITEMS Lead Department: Public Works Meeting Date: March 27, 2023 Report #:2303-1143 TITLE Approval of a Purchase Order with Interstate Truck Center in an Amount Not to Exceed $297,244 for the Purchase of Two 2023 International CV Chipper Body Trucks, Utilizing a Cooperative Purchase Agreement, Funded by Capital Improvement Program Project VR-23000 RECOMMENDATION This item was pulled from Consent Agenda on February 13, 2023 by Council Members Veenker, Lythcott-Haims and Tanaka. The staff report can be found at the attached link: https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82249 ANALYSIS The following additional information relevant to the purchase of the chipper trucks is provided for Council’s consideration: 1.Timing constraints for recommended Purchase Order The formal expiration date of the quote for the chipper trucks occurred prior to the February 13, 2023 Council meeting, but the vendor had verbally agreed to honor the pricing through that date. If Council approves the purchase of the chipper trucks, staff will request an updated quote, and rely on the recommended contingency amount to cover likely cost increases. Given current market conditions, it typically takes 12 to 24 months to place a new truck in service following approval of a purchase order. 2.Additional opportunities for fleet electrification Staff is planning for electrification of the City fleet. Given the size of the fleet, there are multiple opportunities in most years for potential electrification. Replacement of passenger sedan vehicles with electric models is already required, except where specific factors make use of an electric vehicle infeasible. Although electric options are not yet available for the chipper truck replacements, a greater availability of electric medium and heavy-duty trucks is expected in the coming years as the market adapts to upcoming California Air Resources Board regulations. The following are the number of medium and heavy-duty trucks currently scheduled for replacement in the next several fiscal years: •Fiscal Year 2024: 12 vehicles •Fiscal Year 2025: 5 vehicles •Fiscal Year 2026: 4 vehicles ATTACHMENTS None APPROVED BY: Brad Eggleston