Title
Recommendation to Authorize the Purchase of 35 Vehicles, Consistent with the Revised Vehicle Replacement Policy, in an Amount Not to Exceed $1,311,421 from Folsom Lake Ford, $281,666 from Winner Chevrolet, and $126,645 from Freeway Toyota, Including Contingency. (Public Works 703)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
On June 18, 2019, the City Council adopted the Fiscal Year (FY) 2019-20 and 2020-21 budget, which included the replacement of fleet vehicles. Public Works staff committed to returning to the City Council with a revised Administrative Policy and Procedure Number 48, Vehicle and Equipment Replacement Policy (Fleet Replacement Policy) before requesting the purchase of fleet replacements.
Staff revised the Fleet Replacement Policy (Exhibit 1) to be consistent with the City of Alameda’s (City) recently adopted Climate Action and Resiliency Plan (CARP) and its emphasis on greenhouse gas (GHG) 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 GHG emissions through acquisition of low emission vehicles.
Staff seeks approval to purchase 35 vehicles based on unit pricing and estimated up-fitting costs in approved State of California (California) contracts 18-23-14B, 1-18-23-23D and 1-18-23-23C, respectively. California contracts are cooperative purchasing agreements and included as Exhibits 2 through 4.
Twenty seven of the thirty five vehicles are hybrids replacing non-hybrids. This total includes the City’s first purchase of 23 hybrid police interceptors, a highly visible sign of the City’s commitment to a “green” fleet. All together, these new vehicles will cut carbon dioxide equivalent emissions by nearly 50% from the vehicles they replace, help bring the fleet current with state emissions and fuel efficiency standards, improve reliability, and lower operations and maintenance costs.
BACKGROUND
On May 15 and May 16, 2019, the City Council held study sessions on the preliminary budget for FY 2019-20 and 2020-21. Subsequent to these sessions and in order to accommodate City Council’s input, the General Fund contributions to the Fleet Replacement Fund were reduced by 10% in the final adopted biennial budget.
Staff from the City’s Finance and Public Works Departments spent significant time evaluating the vehicle replacement program and identified vehicles meeting the City’s replacement criteria. See Exhibit 5 for the complete list of approved vehicle replacements for FY 2019-21.
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 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
The Alameda Police Department (APD) requires replacement of 19 police patrol vehicles and four mid-sized sedans as detailed in Exhibit 6. Fleet Services confirmed that each of the vehicles requested for replacement meet the minimum use requirements in the Fleet Replacement Policy. In addition, APD and Fleet Services recommend all 23 vehicles be replaced with a Ford Hybrid Interceptor since all-electric police pursuit vehicles are not yet feasible. The total estimated purchase price to Folsom Lake Ford, based on unit pricing included in the FY 2019-21 budget for vehicle and up fitting costs, is $1,311,421. This total includes a 5% contingency to account for actual pricing, which will be subject to slight change based on new model year pricing.
Fleet Services also verified minimum use requirements for the replacement of seven light and medium duty trucks, three units for Public Works and four units for Recreation and Parks, as detailed in Exhibit 6. Fleet Services specified all seven units be replaced with a Chevrolet Colorado. In addition, a Fire Department passenger van will be replaced with a Chevrolet 3500 Passenger Van. This new unit will provide a better platform for Fire Personnel and equipment transport, including mutual aide. Total estimated purchase price to Winner Chevrolet, based on unit pricing included in the FY 2019-21 budget and including vehicle up fitting costs, is $281,666. This total includes a 5% contingency to account for actual pricing, which will be subject to slight change based on new model year pricing. None of these seven vehicle replacements has a feasible electric or hybrid option, and the recommended replacements will bring these vehicles up to date with state emission and fuel efficiency standards.
Planning, Building and Transportation requires the replacement of four light duty trucks, as detailed in Exhibit 6. Fleet verified minimum use requirements for each unit and specified all four units to be replaced with Toyota RAV-4 Hybrids. Total estimated purchase price to Freeway Toyota, based on unit pricing included in the FY 2019-21 budget and including vehicle up-fitting costs, is $126,645. This total includes a 5% contingency to account for actual pricing, which will be subject to slight change based in new model year pricing.
Overall, these replacement vehicles will cut GHG emissions from the City’s fleet, be consistent with the Climate Action and Resiliency Plan, bring older vehicles current with state emission and fuel efficiency standards, improve reliability, and reduce maintenance costs.
ALTERNATIVES
• Authorize the purchase of these replacement vehicles.
• Provide further direction on the Fleet Replacement Policy.
FINANCIAL IMPACT
Purchase of the vehicles from Folsom Lake Ford ($1,311,421), Winner Chevrolet ($281,666), and Freeway Toyota ($126,645), each including a 5% contingency, are funded through existing budget allocations of the Fleet Replacement Internal Service Fund (Fund 701). There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
There is no impact to the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action involves government fiscal activities which do not involve any commitment to any project which may result in a potentially significant physical impact on the environment and is exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines section 15378(b)(4).
CLIMATE IMPACTS
Based on vehicle classification and estimated fuel consumption, these 35 vehicles produced approximately 904 metric tons of carbon dioxide equivalent over their lifecycles. The vehicles requested for purchase will reduce emissions by 434 metric tons of carbon dioxide equivalent over the expected lifecycle of the vehicles. This is a nearly 50% reduction in metric tons of carbon dioxide equivalent.
RECOMMENDATION
Authorize the purchase of 35 vehicles, consistent with the revised Vehicle Replacement Policy, in an amount not to exceed $1,311,421 from Folsom Lake Ford, $281,666 from Winner Chevrolet, and $126,645 from Freeway Toyota, including contingency.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval.
Respectfully submitted,
Liam Garland, Public Works Director
By,
Forrest Heiderick, Fleet Supervisor
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Revised Administrative Policy 48
2. State Contract 18-23-14B
3. State Contract 1-18-23-23D
4. State Contract 1-18-23-23C
5. Vehicle Replacement Schedule
6. Vehicles Included in this Purchase Request
cc: Eric Levitt, City Manager