Title
Recommendation to Authorize Purchase of Vehicles, Consistent with Revised Vehicle Replacement Policy, in an Amount Not to Exceed $227,404 from Folsom Lake Ford, $1,175,165, from Downtown Ford Sales, and $123,099 from National Auto Fleet Group. (Public Works 703)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
On June 18, 2019, City Council adopted the Fiscal Years (FY) 2019-20 and 2020-21 budget, which included budget for replacement of fleet vehicles. On November 5, 2019, staff returned to City Council with a revised Administrative Policy and Procedure Number 48, Vehicle and Equipment Replacement Policy (Fleet Replacement Policy), which includes a focus on right sizing the City of Alameda (City) fleet, the purchase of electric vehicles (EV) when feasible, and lowering the fleet’s greenhouse gas emissions through acquisition of low emission vehicles.
Staff seeks approval to purchase 28 vehicles based on unit pricing and estimated up fitting costs in approved State of California contracts 18-23-14B, 1-18-23-20A and Sourcewell1 (formerly known as NJPA) 120716-NAF, respectively. The State of California and Sourcewell contracts are cooperative purchasing agreements and included as exhibits 1 through 3. These purchases are consistent with the Fleet Replacement Policy.
Four of the 28 vehicle replacements will be hybrids replacing non-hybrids. Three will be 100% EV Nissan Leafs replacing gasoline powered sedans. This is a highly visible sign of the City’s commitment towards a “green” fleet. All combined, these 28 vehicles will reduce greenhouse gas emissions over the expected lifecycle of the vehicles by nearly 30%.
BACKGROUND
On May 15 and May 16, 2019, the City Council held study sessions on the preliminary budget for FYs 2019-20 and 2020-21. Subsequent to these study 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 evaluated the vehicle replacement program and identified vehicles meeting the City’s replacement criteria. See Exhibit 4 for the complete list of approved vehicle replacements for FY 2019-21.
In addition to the approved vehicle replacement program, four vehicles require replacement due to accident damage resulting in a total loss of the vehicle asset. Three are for the Police Department, and one is for the Fire Department.
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.
DISCUSSION
Exhibit 5 lists each of the 28 vehicles for replacement, vehicle age, supporting program, specified new vehicle information, and other details. The four total loss replacements are utility Ford Interceptors that will be replaced with Ford Hybrid Interceptors. The total estimated purchase price to Folsom Lake Ford for these replacements, based on FY 2019-21 unit pricing and up fitting costs, is $227,404.34. This total includes a 5% contingency to account for actual pricing, which will be subject to slight change based on new model year pricing. The cost for these purchases will be recuperated from the City’s insurance coverage through California Joint Powers Risk Authority (CJPRMA) / Hanover Insurance, less the deductible amount.
The Public Works Department requires the replacement of three mid-sized sedans. Staff has confirmed each vehicle meets the minimum use requirements in the Fleet Replacement Policy. EV Nissan Leafs are recommended for the three sedan replacements, bringing the total count of EVs in the Public Works fleet to eight. The total estimated purchase price, based on unit pricing included in the FY 2019-21 budget for vehicle and up fitting costs, is $123,099.48. This total includes a 5% contingency to account for actual pricing, which will be subject to slight change based on new model year pricing.
Staff also verified minimum use requirements for the replacement of twenty-one light and medium duty trucks: eighteen for the Public Works Department, one for Recreation and Parks Department, one for the Library and one for the Fire Department. Staff recommends all twenty-one units be replaced with the current model year F-Series trucks ranging from 150 to 450 platforms, depending on work assignment. These new units will provide a reliable and effective platform for staff to execute their work, including mutual-aid support and disaster response.
The total estimated purchase price to Downtown Ford Sales, based on unit pricing included in the FY 2019-21 budget and including vehicle up fitting costs, is $1,175,164.88. This total includes a 5% contingency to account for actual pricing, which will be subject to slight change based on new model year pricing. Currently, there is not a feasible electric or hybrid option for the light and medium duty trucks; however, the recommended replacements will bring the vehicles up to date with State emission and fuel efficiency standards.
Overall, these replacement vehicles will be consistent with the goals in Climate Action and Resiliency Plan, improve reliability, and reduce maintenance costs.
ALTERNATIVES
• Authorize purchase of the replacement vehicles identified in the staff report.
• City Council may consider providing further direction on these proposed fleet replacements.
FINANCIAL IMPACT
Purchase of the vehicles from Folsom Lake Ford ($227,404.34), Downtown Ford Sales ($1,175,164.88), and National Auto Fleet Group ($123,099.48) 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 28 vehicles produced approximately 647 metric tons of carbon dioxide equivalent over their lifecycles. The vehicles requested for purchase will reduce emissions by 195 metric tons of carbon dioxide equivalent over the expected lifecycle of the vehicles. This is a nearly 30% reduction in metric tons of carbon dioxide equivalent.
RECOMMENDATION
Authorize purchase of vehicles consistent with Fleet Replacement Policy in an amount not to exceed $227,404.34 from Folsom Lake Ford, $1,175,164.88 from Downtown Ford Sales, and $123,099.48 from National Auto Fleet Group.
CITY MANAGER RECOMMENDATION
The City Manager recommends authorization of the purchase of vehicles outlined in the report.
Respectfully submitted,
Liam Garland, Public Works Director
By,
Forrest Heiderick, Fleet Supervisor
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Ford Interceptor Contract
2. Bid Specification
3. Ford F-Series Trucks Contract
4. Vehicle Replacement Schedule
5. Vehicles in Purchase Request
cc: Eric Levitt, City Manager
1 Sourcewell (formerly NJPA) serves government, education & nonprofit organizations with a cooperative purchasing program that manages solicitation requirements & offers a network of awarded contracts.