CC 2013-08-27_08.g. Purchase of Replacement Vehicles for Public WorksMEMORANDUM
TO: CITY COUNCIL
FROM: GEOFF ENGLISH, DIRECTOR OF PUBLIC WORK~
SUBJECT: CONSIDERATION OF THE PURCHASE OF PUBLIC WORKS
DEPARTMENT REPLACEMENT VEHICLES
DATE: AUGUST 27, 2013
RECOMMENDATION:
It is recommended the City Council:
1. Authorize the purchase of a replacement Backhoe Tractor from Coastline
Equipment of Santa Maria in the amount of $85,206.60;
2. Authorize the purchase of a replacement Stencil Painting truck from
Mullahey Ford of Arroyo Grande in the amount of $92,292.87;
3. Authorize the purchase of a replacement Light duty truck from Toyota of
Santa Maria in the amount of $20,889.08;
4. Authorize the purchase of seven (7) replacement service trucks from Perry
Ford of San Luis Obispo in the total amount of $171,940.32; and
5. Authorize the purchase of approximately $52,000 in aftermarket products
to equip the new vehicle purchases.
IMPACT TO FINANCIAL AND PERSONNEL RESOURCES:
The replacement of Public Works vehicles is proposed through a lease/purchase
arrangement utilizing the services of a Municipal financing firm. Payment for a
four ( 4) year lease/purchase arrangement were allocated in various Public Works
Divisions for the FY 13/14 and FY 14/15 budgets and will adequately provide
funding for these purchases. Approval of the lease/purchase agreement is
recommended under a separate agenda item.
BACKGROUND:
The Public Works Department currently has 40 vehicles/equipment in operation.
The City Council previously adopted the two-year City budget for fiscal years
2013/14 and 2014/15, which included funds for the replacement of aging vehicles
in the Public Works Department fleet. The annual allocation of vehicle
replacement funds were intended to cover a four (4) year lease payment
arrangement with a Municipal financing company. A separate recommendation
Item 8.g. - Page 1
CITY COUNCIL
CONSIDERATION TO AUTHORIZE THE PURCHASE OF PUBLIC WORKS
DEPARTMENT REPLACEMENT VEHICLES
AUGUST 27, 2013
PAGE2
to the City Council for the selection of a financing firm for the lease/purchase
agreement will be presented to the City Council under a separate agenda item.
ANALYSIS OF ISSUES:
The Public Works Department vehicle fleet is aging with many of the vehicles
currently in use beyond their productive life. As the fleet ages, the cost of
maintenance of the vehicles increases due to more significant and costly repairs.
In addition, there is more downtime associated with the older vehicles which
impacts the Public Works Department's level of service. The Public Works
Department Fleet Maintenance Coordinator has been successful in extending the
useful life of the current vehicles as the average age of the vehicles proposed for
replacement is approximately 19 years. The typical anticipated replacement
cycle for a Public Works service truck is 10 years.
Bid documents for the replacement Backhoe/Tractor were distributed on July 16,
2013. Three bids were received by the due date of August 8, 2013. The lowest
responsible bid was received from Coastline Equipment of Santa Maria in the
amount of $85,206.60. A copy of the bid summary for the replacement
Backhoe/Tractor is attached.
Bid documents for the replacement light duty truck were distributed on July 25,
2013. Three bids were received by the due date of August 8, 2013. The lowest
responsible bid was received from Toyota of Santa Maria in the amount of
$20,889.08. A copy of the bid summary for the light duty truck is attached. This
light duty service truck will primarily be used for maintenance of the Soto Sports
Complex.
Bid documents for the replacement of seven (7) replacement service trucks were
distributed on July 25, 2013. Three bids were received by the due date of August
8, 2013. The lowest responsible bid was received from Perry Ford of San Luis
Obispo in the total amount of $171,940.32. This bid was lower than Mullahey
Ford's bid even after applying the 5% preference discount for local dealers. A
copy of the bid summary for the (7) replacement service trucks is attached.
This (7) replacement service trucks will primarily be used in the following areas:
• Sewer Division ( 1 ) % ton service truck
• Streets Division (3) % ton service trucks
• Streets Division (1) 2 % ton truck with dump bed
• Parks Division ( 1 ) % ton service truck
• Parks Division ( 1 ) 2 % ton truck with flat bed & tank
• Buildings Division (1) % ton service truck
·I
Item 8.g. - Page 2
CITY COUNCIL
CONSIDERATION TO AUTHORIZE THE PURCHASE OF PUBLIC WORKS
DEPARTMENT REPLACEMENT VEHICLES
AUGUST 27, 2013
PAGE3
Staff is also proposing the replacement of the Streets Division Stencil Paint truck
through a "piggy-back" purchase arrangement based on a recent bid process
conducted by the County of San Luis Obispo Public Works Department. In that
bid process, Mullahey Ford of Arroyo Grande was the low-bidder for a Stencil
Painting truck purchase in the amount of $92,292.87 (includes sales tax
adjustment to reflect City's sales tax rate). Bid results and documents from the
County of San Luis Obispo are attached.
The purchase of approximately $52,000 of after-market products to out-fit the
vehicles will include flashing beacons, radios, antenna, lift gates, truck bed
mounted tool boxes, lift gates, door-decals, bed liners, a dump bed and
miscellaneous other equipment. These items will be bid and secured in
compliance with the City's Purchasing Policy.
ADVANTAGES:
The following advantages have been identified for the project:
• Replacement of the aging fleet vehicles will reduce vehicle maintenance
costs and downtime.
• Certain vehicles such as PW 19, a diesel powered dump truck is no longer
in service due to a mechanical failure of the engine. In addition, this
vehicle no longer meets the current Air Pollution Control District (APCD)
diesel emission standards. The replacement vehicle will comply with
APCD diesel emission standards.
• The lease/purchase arrangement will allow for consistency in funding for
vehicles over an extended period of time.
DISADVANTAGES:
No disadvantages have been identified for the project.
ENVIRONMENTAL REVIEW:
No environmental review is required for this administrative action.
ALTERNATIVES:
The following alternatives are provided for the City Council's consideration:
1 . Authorize the proposed vehicle purchases;
2. Do not authorize the purchase of the proposed vehicles;
3. Direct staff to re-bid the proposed vehicle replacements; or
4. Provide direction to staff.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, August 22, 2013. The
Agenda and staff report were posted on the City's website on Friday, August 23,
2013.
Item 8.g. - Page 3
CITY COUNCIL
CONSIDERATION TO AUTHORIZE THE PURCHASE OF PUBLIC WORKS
DEPARTMENT REPLACEMENT VEHICLES
AUGUST 27, 2013
PAGE4
ATTACHMENTS:
1. Bid Opening Log Sheets (Backhoe/Loader, Light Duty Truck, and Service
Trucks)
2. Bid results and purchase documents for Stencil Truck
Item 8.g. - Page 4
,----·------------=---
BID OPENING LOG SHEET
CITY OF ARROYO GRANDE
DEADLINE: AUGUST 8, 2013 -3:00 PM
Backhoe/Loader Purchase
SUBMITTED BY:
Pape Machinery
Gilroy, CA
Coastline Equipment
Santa Maria, CA
Quinn Company
Santa Maria, CA
, Deputy City Clerk
c. Director of Public Works
City Manager
TOTAL
$93,852.00
$85,206.60
$86,587.94
ATTACHMENT 1
Item 8.g. - Page 5
SUBMITTED BY:
Santa Maria Nissan
Santa Maria, CA
Toyota of San Luis Obispo
San Luis Obispo, CA
Toyota of Santa Maria
Santa Maria, CA
BID OPENING LOG SHEET
CITY OF ARROYO GRANDE
DEADLINE: AUGUST 8, 2013-5:00 PM
\LighrDuty tiucli-PW-ciiase a ~----------~--~----y
TOTAL
$22,269.00
$21,036.59
$20,889.08
c. Director of Public Works
City Manager
Item 8.g. - Page 6
SUBMITTED BY:
Mullahey Ford
Arroyo Grande, CA
Perry Ford
San Luis Obispo, CA
Borjon Auto Center
Paso Robles, CA
BID OPENING LOG SHEET
CITY OF ARROYO GRANDE
DEADLINE: AUGUST 8, 2013 -5:00 PM
Service Truck Purchase
TOTAL
$184, 150.00
$171,940.32
$113,783.71 (2 vehicles only-did not bid
2 % ton truck)
c. Director of Public Works
City Manager
Item 8.g. - Page 7
ATTACHMENT 2
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Item 8.g. - Page 8
County of San Luis Obispo
Department of General Services
1087 Santa Rosa S'lrBBt Phone: (805) 781-5900
Page 1 of 2
03/07/2013 11 :05:40
version 1
San Luis Obispo, CA 93408-0000 Fax: (805) 781-1074
Internet: www.co.slo.ea.us/purchasing
Vendor
MULLAHEY FORD
PO Box 578
ARROYO GRANDE CA 93421-0578
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COUNTY OF SAN LUIS OBISPO
PUBLIC WORKS -WAREHOUSE
1395 KANSAS AVE
SAN LUIS OBISPO CA 93405
Pure
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Document 22008687
Document Date 03/07 /2013
Vendor Number 1000001707
Payment Terms
Buyer
Phone Number
Delivery Date
lncoTerms
Destination
Payment of invoi e due immediately.
Barbara Adams
805-781-5906
05/31/2013
Free on board
San Luis Obispo
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COUNTY OF SAN LUIS OBISPO
PUBLIC WORKS -MAIN OFFICE
COUNTY GOVT CENTER RM 207
SAN LUIS OBISPO CA 93408
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PER THE TERMS, CONDITIONS, AND SPECIFICATIONS OF ITB 3598-13:
1 TRUCK, STENCIL 1.00 EA 85,456.36
Ford F-450 1.5 Ton Stencil Truck
Vehicle #E1241
Vendor to Provide exempt registration for this vehicle as follows:
COUNTY OF SAN LUIS OBISPO
PUBLLIC WORKS E1241
1355A KANSAS AVE
SAN LUIS OBISPO, CA 93405
INSTRUCTIONS TO VENDOR:
Net Value
Tax
Total Amount
85,456.36
85,456.36
6,409.23
$ 91,865.59
This Purchase Order is subject to the Terms and Conditions incorporated herein by reference on the reverse side of this document.
siGNATURE ____ G __ U.----______________ DATE ___ 0_31_0_1_12_0_1_3_· __ _
(Purchasing/Accounting)
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