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Recommendation to Authorize the Purchase of Twelve Vehicles Consistent with Revised Vehicle Replacement Policy in Amounts Not to Exceed $118,098 from Cromer Material Handling for Three Forklifts, $465,873 from Downtown Ford Sales and $96,815 from Elk Grove Auto Group/Winner Chevrolet for Nine Light and Medium Duty Trucks. (Public Works 701)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Nine light and medium duty trucks and three forklifts were approved for replacement in Fiscal Years (FY) 2019-20 and 2020-21. Staff confirmed each vehicle meets the minimum use requirements in the Fleet Replacement Policy. Staff seeks approval to purchase three of the replacement vehicles based on unit pricing and estimated up fitting costs in approved State of California contracts from Elk Grove Auto Group/Winner Chevrolet and six replacement vehicles from Downtown Ford Sales. The purchase of the three forklifts will be under a contract held between Sourcewell, a cooperative purchasing agency that the City of Alameda (City) is a member of, and Cromer Material Handling in an amount not to exceed $118,098.
Currently, there is not a feasible electric or hybrid option for the required 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 are consistent with the City’s goals in Climate Action and Resiliency Plan, improve reliability, and reduce maintenance costs.
BACKGROUND
On June 18, 2019, the City Council adopted the FY 2019-20 and 2020-21 budget, which included funds for replacement of fleet vehicles. Staff spent significant time evaluating the vehicle replacement program and identified vehicles meeting the City’s replacement criteria. Exhibit 1 contains the complete replacement schedule.
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), as committed to before the purchase of any vehicles authorized for replacement. 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 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.
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
Staff verified minimum use requirements for the replacement of nine light and medium duty trucks, and three forklifts. The three forklifts, one for the Fire Department and two for Public Works, will be liquid propane gas (LPG) powered. LPG is a clean-burning alternative fuel that has been used for decades to power light-duty, medium-duty, and heavy-duty propane vehicles. These units will be purchased under a contract held between Sourcewell, a cooperative purchasing agency that the City is a member of, and Cromer Material Handling in an amount not to exceed $118,098 (see Exhibit 2).
Six replacement trucks, three for Recreation and Parks and three for Public Works, will be purchased per State contracts with Downtown Ford Sales in an amount not to exceed $465,873 (see Exhibit 3).
Three replacement vehicles for Recreation and Parks, one truck and two passenger vans, will be purchased per State contracts with Elk Grove Auto Group/Winner Chevrolet in an amount not to exceed $96,815 (see Exhibit 4).
All new units will provide a reliable and effective platform for staff to execute their work, including mutual-aid support and disaster response.
ALTERNATIVES
• Authorize purchase of the proposed replacement vehicles.
• Provide further or different direction on the purchase of the replacement vehicles.
• Do not authorize purchase of the replacement vehicles.
FINANCIAL IMPACT
The purchase of these vehicles from Cromer Material Handling ($118,098), Downtown Ford Sales ($465,873) and The Elk Grove Auto Group/Winner Chevrolet ($96,815) are budgeted in the Fleet Replacement Internal Service Fund (Fund 701) FY 2020-21 budget. No additional budget appropriation is required. 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
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.
CLIMATE IMPACTS
The two new diesel trucks are equipped with “Clean Diesel Technology”, which meets or exceed all current State and Federal emission requirements. The “Clean Diesel” vehicle purchase confirms the City’s commitment to greening the City fleet as new vehicles cut carbon dioxide equivalent emissions by nearly 50% from the vehicles they are replacing, have higher fuel efficiency standards, improve reliability, and lower operations and maintenance costs.
The three forklifts will be LPG powered. LPG is a clean-burning alternative fuel that has been used for decades to power light-duty, medium-duty, and heavy-duty propane vehicles.
The seven replacement gasoline trucks will meet or exceed all State and Federal emissions standards. This purchase is replacing, in some instances, trucks 26-years old with little to no emissions control measures. All new trucks are required to meet or exceed 2021 Federal and State emissions requirements
RECOMMENDATION
Authorize the purchase of twelve vehicles consistent with Revised Vehicle Replacement Policy in amounts not to exceed $118,098 from Cromer Material Handling, $465,873 from Downtown Ford Sales, and $96,815 from Elk Grove Auto Group/Winner Chevrolet.
CITY MANAGER RECOMMENDATION
The City Manager recommends authorization to purchase of twelve vehicles consistent with the Vehicle Replacement Policy.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Forrest Heiderick, Fleet Supervisor
Financial Impact section reviewed,
Annie To, Finance Director
Exhibits:
1. Vehicle Replacement Schedule
2. Cromer Quotes
3. Downtown Ford Quotes
4. Elk Grove Quotes
cc: Eric Levitt, City Manager