CC 2017-08-22_09e Purchase of PW Vehicles
MEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SEVICES
BY: RAUL JUAREZ, FLEET MAINTENANCE COORDINATOR
GLENDA BONER, ADMINISTRATIVE SECRETARY
SUBJECT: CONSIDERATION OF THE PURCHASE OF PUBLIC WORKS
DEPARTMENT REPLACEMENT VEHICLES
DATE: AUGUST 22, 2017
RECOMMENDATION:
It is recommended the City Council:
1. Approve the plan for replacement of Public Works vehicles and equipment in FY
2017-18;
2. Authorize the purchase of three (3) replacement service trucks from Mullahey
Ford of Arroyo Grande, for the total amount of $73,647.18;
3. Authorize the purchase of a replacement Dump Truck from Gibbs International,
Inc. of Santa Maria, in the amount of $149,012.26;
4. Authorize the purchase of an Alternative Fuel Vehicle (Hybrid) from Mullahey
Ford of Arroyo Grande in the amount of $21,985.11;
5. Authorize the purchase of a Mini Excavator from Berchtold Equipment Company
in the amount of $62,634.00;
6. Delegate authority to the City Manager to execute all necessary purchase orders
or documents to facilitate the purchase of planned vehicles and equipment; and
7. Adopt a Resolution declaring four vehicles surplus and authorize their disposal.
SUMMARY OF ACTION:
Take action to approve the purchase of the replacement vehicles and aftermarket
products (radios, light bars, truck beds, etc.).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The replacement of the Public Works vehicles is proposed through a lease/purchase
arrangement utilizing the services of a municipal financing firm. Payments for a four (4)
year lease/purchase arrangement were allocated in various Public Works Divisions for
the FY 2017/18 budgets. Approval of the lease/purchase agreement is recommended
under a separate agenda item.
Item 9.e. - Page 1
CITY COUNCIL
CONSIDERATION OF THE PURCHASE OF PUBLIC WORKS DEPARTMENT
REPLACEMENT VEHICLES
AUGUST 22, 2017
PAGE 2
BACKGROUND:
The Public Works Department currently has 39 vehicles/equipment in operation. The
FY 2017-18 adopted budget includes funds for replacing aging vehicles in the Public
Works Department fleet. The annual allocation of replacement funds is intended to
cover a four (4) year lease payment arrangement with a municipal financing company.
A separate recommendation to the City Council for the selection of a financing firm for
the lease/purchase agreement will be presented to the City Council tonight under a
separate agenda item.
After assessing the condition of the fleet, a plan for replacements was developed. The
decision to purchase new equipment or vehicles is based on the age, mileage/use,
condition, and maintenance records of existing equipment as well as current operational
needs. The following chart summarizes the planned vehicle and equipment acquisitions:
Current
Vehicle/Equipment
Proposed
Vehicle/Equipment
Vendor Purchase
Price/Estimate
P-56 (Parks) F-250 Mullahey Ford $ 24,550
P-59 (Parks) F-250 Mullahey Ford 24,550
PW-10 (Water) F-250 Mullahey Ford 24,550
PW-50 (shared) Dump Truck Gibbs International 149,012
New (shared) CMAX Mullahey Ford 21,985
New (shared) Mini Excavator Berchtold Equip. Co. 62,634
PW-47 (Streets) Striper 30,000 (est.)
New (Streets/Parks) Used bucket truck 45,000 (est.)
New (Streets/Parks) Skid steer 40,000 (est.)
Total $ 422,281
In addition to the purchase of the vehicles, there will be approximately $56,000 in
additional costs for aftermarket equipment such as radios, light bars, truck beds, tool
boxes and decals in order to make the vehicles ready for use.
ANALYSIS OF ISSUES:
The Public Works Department vehicle fleet is aging with many of the vehicles and
equipment currently in use beyond their productive life. As the fleet ages, the cost of
maintaining the vehicles and equipment increases. In addition to the repair costs, the
increased downtime of the aging vehicles while being repaired impacts the department’s
level of service. The typical anticipated replacement cycle for a service vehicle is 10
years. The 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 15 years.
Item 9.e. - Page 2
CITY COUNCIL
CONSIDERATION OF THE PURCHASE OF PUBLIC WORKS DEPARTMENT
REPLACEMENT VEHICLES
AUGUST 22, 2017
PAGE 3
An additional consideration for replacement of certain vehicles and equipment is
compliance with the Air Pollution Control District (APCD) diesel emission standards.
The City’s current dump truck does not meet the standards and retrofitting is not
available for this particular engine. This large vehicle is used by streets, parks, water
and sewer in maintaining the City’s infrastructure.
An analysis of the current fleet and operational needs identified vehicles that could be
“swapped” between departments or divisions to better utilize the fleet and thus reduce
the number of vehicles that are in need of replacement at this time. In addition, it
identified a need for a shared vehicle for Public Works administrative staff. In
compliance with the City’s greenhouse gas policy, this was identified as an appropriate
use for an alternative fuel vehicle. The Streets and Parks divisions both identified the
need to have a small excavator, a skid steer and a bucket truck with a longer reach than
the current bucket truck. In addition, the equipment used to apply striping to streets was
previously identified as inoperable and surplus, but has not yet been replaced. The plan
proposes purchasing a new shared mini excavator and skid steer, a street striping
machine, as well as purchasing a used bucket truck, which would allow the existing
bucket truck to continue to be used for many “shorter reach” operations, and extend its
useful life.
Bid documents for the replacement of three (3) service trucks, a new alternative fuel
vehicle (hybrid), replacement dump truck, and the purchase of a new mini excavator
were distributed on July 7, 2017. Twenty-four (24) bids were received by the due date
of July 27, 2017. The apparent low bid for the mini excavator as well as for the dump
truck was deemed unresponsive due to not including required cost components. A copy
of the bid summaries for the vehicle purchases is attached. The plan identified
purchasing a used bucket truck to supplement the current bucket truck as well as a skid
steer. These two items are not part of this report and it is recommended that the
Council delegate approval of the future purchase contracts for these items to the City
Manager, provided the acquisition is within the Council approved budget.
It is recommended that the three service trucks and one dump truck that are being
replaced be declared as surplus property and disposed of in accordance with the City’s
policy. The attached Resolution accomplishes this action.
ALTERNATIVES:
The following alternatives are provided for the 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.
Item 9.e. - Page 3
CITY COUNCIL
CONSIDERATION OF THE PURCHASE OF PUBLIC WORKS DEPARTMENT
REPLACEMENT VEHICLES
AUGUST 22, 2017
PAGE 4
ADVANTAGES:
The following advantages have been identified for the vehicle purchases:
1. Replacement of the aging vehicles will reduce maintenance costs and downtime.
2. Certain vehicles no longer meet current Air Pollution Control District (APCD)
diesel emission standards. Replacement vehicles will comply with new emission
standards.
3. The lease/purchase arrangement will allow for consistency in funding for vehicles
over an extended period of time.
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
No environmental review is required for this administrative action.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachment:
1. Quotation Opening Log Sheets
Item 9.e. - Page 4
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE DECLARING FOUR UNUSED
VEHICLES AS SURPLUS PROPERTY AND
AUTHORIZING THEIR SALE OR DISPOSAL
WHEREAS, the City of Arroyo Grande (“City”) owns four vehicles that are no longer
used or needed; and
WHEREAS, these items can be classified as surplus property and made available for
sale to private parties or disposed of.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo
Grande does declare as surplus property the vehicles described in Exhibit A attached
hereto and incorporated herein by this reference, and authorizes the sale/disposal of
said surplus property in compliance with authorized disposition procedures.
On motion of Council Member _________, seconded by Council Member _________,
and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 22nd day of August, 2017.
Item 9.e. - Page 5
RESOLUTION NO.
PAGE 2
_____________________________________
JIM HILL, MAYOR
ATTEST:
_____________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
_____________________________________
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
_____________________________________
HEATHER WHITHAM, CITY ATTORNEY
Item 9.e. - Page 6
RESOLUTION NO.
PAGE 3
EXHIBIT A
SURPLUS VEHICLES AVAILABLE FOR DISPOSITION
Identification # Year Make Model
P‐56 2000 Chevrolet Silverado
P‐59 2003 Ford F‐350
PW‐50 1993 International Dump Truck
PW‐10 2006 Ford F‐250
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ATTACHMENT 1Item 9.e. - Page 8
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