Title
Recommendation to Authorize the Purchase of One Street Sweeper and One Ford F450 Dump Truck Consistent with Revised Vehicle Replacement Policy in Amounts Not-to-Exceed $393,000 from Tymco, Inc., $66,000 from Watsonville Fleet Group and $53,000 from Western Truck Fabrication; and
Adoption of Resolution Amending the Fleet Replacement Fund (601) Budget (1) Reappropriating $393,000 from Fiscal Year 2024-25 to Fiscal Year 2023-24 to Advance the Street Sweeper Purchase from Fiscal Year 2024-25 to Fiscal Year 2023-24; and (2) Reappropriating $119,000 in Unspent Funds from Fiscal Year 2022-23 to Fiscal Year 2023-24 for the Purchase of a Dump Truck. (Public Works 60141581)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Street sweeping and illegal trash dumping collections are important community services. A backup street sweeper that is used when one of the main sweepers is down requires retirement sooner than expected. A new sweeper is scheduled for purchase in the Fiscal Year (FY) 2024-25 budget and staff is requesting that purchase be expedited now to ensure continuity of service. Relatedly, a dump truck used to pick up illegally dumped trash was scheduled for replacement in FY 2022-23. At that time, staff believed the truck had an estimated three years of service life left; however, the truck recently experienced multiple mechanical issues.
Staff seeks approval to purchase one replacement Tymco 600 street sweeper and one replacement dump truck. This requires two actions from City Council: a budget amendment and authorization to make the purchases as the cost for each vehicle exceeds the City Manager’s signing authority. The budget amendment will reduce the expenditure budget in the Fleet Replacement Fund (601) for FY 2024-25 by $393,000 and increase the FY 2023-24 by the same amount. Although funding is available in the Fleet Replacement Fund for the dump truck replacement, funds budgeted and not spent in the last budget cycle were returned to the fund balance and need to be re-appropriated in the current budget cycle. The budget amendment appropriates the necessary funding. The proposed authorized amount to each vendor includes an approximate 5% increase for inflation from the total amount included in the vendor quote, which is good for 30 days. If prices remain unchanged following City Council approval, the actual expenditures will be as shown in the vendor quotes, Exhibits 1 through 3. There is no impact to the General Fund from this action.
BACKGROUND
Street sweeping of public streets is a City of Alameda (City) service that helps to beautify the community by removing litter and debris from streets and the curb/gutter. It also protects the environment, because street sweeping reduces the pollutant load (litter, leaves, pet/animal debris, heavy metals, sediment, etc.) that could clog storm drains or might otherwise reach waterways or the Bay. The City’s street sweeper fleet consists of three main street sweepers. Since sweepers are complicated machines that require frequent repair and maintenance, the City keeps two older units on reserve that are used when a main sweeper is being repaired. The reserves are essential for continuity of service.
In June 2023, City Council adopted the FYs 2023-24 and 2024-25 budget, which included funding to replace one main sweeper in FY 2024-25. Unfortunately, one of the reserve units requires replacement earlier than anticipated due to structural defects, rust, wear, age, poor performance and increasing maintenance costs. Given their constant use, it is not unlikely that two of the three main sweepers are in the garage at the same time and therefore it is important to keep two reserve units.
Dump trucks are used for a variety of functions including, sidewalk/street repair; delivery of materials such as asphalt, sand, and gravel; illegal trash dumping collection and cleanups related to people experiencing homelessness. MSC-12 is a one-ton dump truck used by Public Works that was scheduled for replacement in the FY 2022-23. At that time, staff believed the truck to have an estimated three (3) years of service life left; however, the truck recently experienced multiple mechanical issues and requires replacement.
On November 5, 2019, staff brought to City Council a revised Administrative Policy and Procedure Number 48, Vehicle and Equipment Replacement Policy (Fleet Replacement Policy). 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. 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.
DISCUSSION
Staff seeks approval to purchase one replacement Tymco 600 street sweeper and one replacement dump truck. This requires two actions from City Council: a budget amendment and authorization to make the purchases as the cost for each vehicle exceeds the City Manager’s signing authority. Funding for the street sweeper replacement was approved for FY 2024-25. The budget amendment will reduce the expenditure budget for FY 2024-25 by $393,000 and increase the FY 2023-24 by the same amount. Although funding was available in the Fleet Replacement Fund FY 2022-23 budget for the dump truck replacement, funds budgeted and not spent in the last budget cycle were returned to the fund balance and need to be re-appropriated in the current budget cycle. The budget amendment appropriates the necessary funding.
The street sweeper will be purchased per pricing in the contract held between Houston-Galveston Area Council (HGAC), a cooperative purchasing agency of which the City is a member, and Tymco, Inc. The total not-to-exceed amount is $393,000, which includes the vendor quote total (Exhibit 1) plus an approximate 5% inflation estimate, as the quote is only good for 30 days and was issued on July 27, 2023 in preparation for City Council approval. Actual cost will be based on a revised quote issued following City Council approval. Upon delivery of the new street sweeper the oldest main sweeper will move to reserve, which will replenish the reserve count back to two.
The street sweeper confirmed for replacement is a Clean Diesel unit. Electric street sweepers that meet the City’s specification are not yet available. Only electric sweepers for smaller applications without the required hopper capacity and operating range are currently available. Staff will continue to monitor the market.
The dump truck will be a Ford F-450 purchased per pricing from Watsonville Fleet Group (Exhibit 2), who currently holds the California State contract. The aftermarket dump body, underbody and pull tarps will be installed by a spate vendor, Western Truck Fabrication (Exhibit 3). The total not-to-exceed amounts are $66,000 from Watsonville Fleet Group and $53,000 from Western Truck Fabrication. These figures include the vendor quote totals plus an approximate 5% inflation estimate, as the quotes are good for 30 days only. Actual cost will be based on a revised quote issued following City Council approval. Upon delivery of the new dump truck, the old dump truck will be retired.
The dump truck will come with a gas engine. Electric dump trucks are not yet available. Staff will continue to monitor the market.
ALTERNATIVES
• Adopt the budget resolution and authorize purchase of the replacement vehicles.
• Do not authorize the early purchase of the replacement sweeper and have only one reserve street sweeper. This may have impact on the delivery of street sweeping service. This alternative would negate the need for the relevant section of the proposed budget resolution.
• Do not authorize purchase of the new dump truck and spend an estimated $8,000 for repairs on a 23-year-old dump truck. This truck will likely need additional repairs and be unreliable. It currently has a value of $4,000.
FINANCIAL IMPACT
The replacement of the dump truck was budgeted in the Fleet Replacement Fund (601) in FY 2022-23 but the purchase was not executed. Therefore, staff recommends re-appropriating the unspent funds previously allocated for the dump truck.
The replacement of the street sweeper was budgeted in FY 2024-25 but due to unforeseen mechanical issues, the street sweeper needs to be replaced in FY 2023-24. Therefore, staff recommends increasing the budget in FY 2023-24 and decreasing the budget in FY 2024-25 by the same amount in order to execute the purchase sooner.
There is no impact to the General Fund as the proposed budget amendment re-allocates funding previously allocated to the Fleet Replacement Fund by City Council.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in CEQA Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACTS
The Fleet Replacement Policy is consistent with the City’s recently adopted Climate Action and Resiliency Plan and emphasizes greenhouse gas emission reductions. The revised policy includes a focus on right-sizing the City fleet, the purchase of electric vehicles when feasible, and lowering the fleet’s greenhouse gas emissions through acquisition of low emission vehicles.
All replacements will be equipped with “Clean Diesel Technology” and will meet or exceed all current state and federal emission requirements. These “Clean Diesel” vehicle purchases confirm the City’s commitment to a green fleet. The new vehicles will cut carbon dioxide and diesel particulate matter in emissions by nearly 50% from the vehicles they replace.
RECOMMENDATION
Authorize the purchase of one street sweeper and one Ford F450 Dump Truck consistent with revised Vehicle Replacement Policy in amounts not-to-exceed $393,000 from Tymco, Inc., $66,000 from Watsonville Fleet Group and $53,000 Western Truck Fabrication; and adopt- a resolution amending the Fleet Replacement Fund (601) budget (1) re-appropriating $93,000 from Fiscal Year 2024-25 to Fiscal Year 2023-24 to advance the Street Sweeper Purchase from Fiscal Year 2024-25 to Fiscal Year 2023-24; and (2) re-appropriating $119,000 in unspent funds from Fiscal Year 2022-23 to Fiscal Year 2023-24 for the purchase of a Dump Truck
Respectfully submitted,
Erin Smith, Public Works Director
By,
Carlo Balboni, Fleet Supervisor
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. TYMCO Price Quote
2. Watsonville Fleet Group F450 quote
3. Western Truck Fabrication dump body quote.