Title
Recommendation to Authorize the Purchase of Two Replacement Vehicles Consistent with the Revised Vehicle Replacement Policy in Amounts Not-to-Exceed $181,207 from Global for One Aerial/Bucket Truck and $232,533 from Altec Industries for One Crane Truck. (Public Works 60141581)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
City Council previously appropriated funds and on January 3, 2023, authorized the purchase of two replacement trucks: an aerial/bucket truck for streetlight maintenance and a crane truck for sewer operations from Downtown Ford, the State contract recipient for these particular trucks. Ford is unable to fulfill this order with model year 2023 trucks. Ford can fill this order with model year 2024 trucks, which will have a 2-year delivery time and an increase in cost estimated at 10-15%. Due to this change, tonight’s action authorizes the purchase of these replacement vehicles from different vendors through Sourcewell, a cooperative purchasing agency in which the City of Alameda (City) participates.
Staff recommends canceling the previously issued purchase order to Downtown Ford for $404,162.72 and instead purchasing the replacement trucks from Global, in an amount not-to-exceed $181,207 for a 2023 Ford 550 outfitted with an aerial/bucket for streetlight operations, and Altec Industries, in the amount not-to-exceed $233,533.11 for a 2023 RAM 5500 crane truck for sewer operations. Altec Industries and Global have supplied similar trucks to Alameda Municipal Power for over 10 years and each hold a Sourcewell contract on which the pricing was based. The total purchase price from these alternate vendors for the two replacement trucks is $413,740.11, a 2.5% increase from the previously approved purchase.
BACKGROUND
On November 5, 2019, City Council approved revised Administrative Policy and Procedure Number 48, Vehicle and Equipment Replacement Policy (Fleet Replacement Policy). The Fleet Replacement Policy is consistent with the City’s recently adopted Climate Action and Resiliency Plan and emphasizes greenhouse gas (GHG) emission reductions. The revised policy focuses on right-sizing the City fleet, purchase of electric vehicles when feasible, and lowering the fleet’s GHG emissions through acquisition of low emission vehicles. In June 2021, City Council adopted the FY 2021-21 and 2022-23 budget, which included funds for the replacement of fleet vehicles.
In accordance with City Administrative Instruction Number 5 (Purchasing Policy), vehicles may be purchased by piggybacking on another agency’s purchase agreement or through cooperative purchasing. The Purchasing Policy states that the City Council must approve an award of vehicle purchases to a single vendor made through either piggybacking or cooperative purchasing in excess of a cumulative total of $75,000 in any given fiscal year.
On January 3, 2023, City Council approved the purchase of a replacement aerial/bucket truck for streetlight operations and a crane truck for sewer operation from Downtown Ford in a total amount not-to-exceed $404,162.72. Ford is unable to fulfill this order with model year 2023 trucks. Ford can fill this order with model year 2024 trucks, which will have a 2-year delivery time and an increase in cost estimated at 10-15%.
DISCUSSION
The City is responsible for nearly 8,000 streets, parking lots, and park pathway lights. Maintenance of these lights require the use of a bucket truck. The existing bucket truck is at the end of its useful life and meets the criteria for replacement. Additionally, the City owns and maintains over 40 wastewater pump stations, each with pumps located in deep wells. These pumps often need to be pulled out for maintenance and replacement which is done with the use of a crane truck. The City’s existing crane truck is at the end of its useful life and requires replacement.
Staff researched the possibility of electric options for these trucks. Currently, there is only one company making this type of electric bucket truck and they are on an International chassis, which makes the truck too big for the residential streets in Alameda. Ford, RAM, General Motors, and other manufactures are in development to make heavy duty electric trucks but that is still a few years away. Staff will continue to monitor the market.
Both proposed trucks will be clean diesel Tier IV engine units that meet or exceed California emissions standards. Exhibit 1 includes the quote from Global to purchase the Ford 550 aerial/bucket truck based on Sourcewell contract # 062320-ALT. Also included is a quote for the aftermarket safety equipment and inverter to be installed on this truck. Exhibit 2 includes the quote from Altec Industries to purchase the RAM 550 crane truck with pricing based Sourcewell contract#110421-ALT. Also included is a quote for the aftermarket safety equipment and inverter to be installed on this truck.
The total purchase price from these alternate vendors for the two replacement trucks is $413,740.11, a 2.5% increase from the original City Council authorized amount to Downtown Ford. Given that Downtown Ford cannot fulfill the 2023 order, staff recommends this option so the City receives the vehicles sooner and for a smaller increase than Downtown Ford’s 2024 quoted option. Both existing trucks perform critical functions and they are at or past their expected useful life with increased repair costs and downtime.
ALTERNATIVES
• Authorize purchase of the proposed replacement vehicles from the proposed vendors.
• Do not authorize purchase of the vehicles from these vendors and direct staff to order from Downtown Ford. This alternative will require staff to return to Council to authorize an increase in the previously authorized amount to account for the increase in model year 2024 pricing. The delay in delivery for model year 2024 may have operational impacts.
FINANCIAL IMPACT
Funds for these replacement purchases were previously appropriated in the Fleet Replacement Fund (601) and Sewer Fund (501). No additional budget appropriations are needed.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment. This action is not a “project” pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
The replacement Ford 550 bucket and Ram 5500 crane trucks are equipped with modern clean diesel final Tier IV diesel engines that meets or exceed CA emissions standards.
RECOMMENDATION
Authorize the purchase of two replacement vehicles consistent with the revised Vehicle Replacement Policy in amounts not to exceed $181,207 from Global for one Arial/Bucket Truck and $232,533.11 from Altec Industries for one Crane Truck.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Carlo Balboni, Fleet Supervisor
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Global Quote - Arial/Bucket Truck Plus After Marker Safety Equipment
2. Altec Industries Quote - Crane Truck Plus After Marker Safety Equipment