Staff Report with attachments
PREPARED BY: Jim Harbin
Superintendent
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Interim Finance Director, and
Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 09/06/2022
ITEM NO: 5
DATE: August 17, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize an Expenditure Budget Adjustment from available Vehicle
Replacement Fund in the Amount of $8,027 for a Total Vehicle Purchase
Amount not to Exceed $137,685
RECOMMENDATION:
Authorize an expenditure budget adjustment from available Vehicle Replacement Fund in the
amount of $8,027 for a total vehicle purchase amount not to exceed $137,685.
BACKGROUND:
As part of the Adopted Operating Budget, the Equipment Replacement Fund is approved
annually to provide funds for the replacement of high mileage or older vehicles that have
reached the replacement criteria or do not meet federal regulations for emissions. The Town’s
goal is to amortize a vehicle’s replacement over its forecasted life and sets funds aside on an
annual basis to ensure the Equipment Replacement Fund has sufficient resources for the timely
replacement of vehicles. In addition, this funding structure allows for a smoothing of operating
expenditures and a more accurate reflection of the actual cost of operations.
PPW currently operates a Ford F450 medium duty Versalift aerial unit which is used in Parks
and Public Works Maintenance Operations to provide access for work on signs, banners,
streetlights, tree work, and other high locations needing work. The vehicle that the staff
recommends replacing is fully amortized in the replacement program and all necessary funds
are available.
PAGE 2 OF 2
SUBJECT: Authorize an Expenditure Budget Adjustment t in the Amount of $8,027
DATE: August 17, 2022
BACKGROUND (continued):
On February 16, 2021, Town Council authorized the Town Manager to purchase a cab chassis
vehicle with an aerial lift platform body from Altec Industries, Inc. in the amount not to exceed
$129,658; however, due to the current supply chain issues and steel and aluminum shortages,
material costs have increased dramatically, and delivery dates have been extended as much as
nine months or more.
Costs for the vehicle purchase and build-up increased since Council’s approval on February 16,
2021, due to material surcharges, estimated tax adjustments, and additional safety equipment
added which was not available at the time of the initial order resulting in an updated quotation
(Attachment 1).
DISCUSSION:
In accordance with the Town’s Purchasing Policy, Section 7c (Cooperative Purchasing) and the
Town’s Vehicle and Equipment Acquisition and Replacement Policy (Attachment 2), the
purchase of these vehicles is based on a formal bid process completed by the State of California
Department of General Services, which allows for other municipalities to purchase vehicles
using their formal bid proposal documents. The Adopted Budget allows for the replacement of
each of the vehicles as recommended in this report.
CONCLUSION:
Authorize an expenditure budget adjustment from available Vehicle Maintenance Fund in the
amount of $8,027 for a total vehicle purchase amount not to exceed $137,685.
FISCAL IMPACT:
There are sufficient funds available in the Equipment Replacement Fund for the requested
budget adjustment to purchase this vehicle.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Vehicle Quote
2. Town Vehicle and Equipment Acquisition and Replacement Policy
Quote Number:797733-3
Opportunity Number:1623029
Sourcewell Contract #:012418-ALT
Date:11/9/2021
REFERENCE ALTEC MODEL
Sourcewell
Price
Articulating Telescopic Aerial Device (Insulated)$104,353
(A.)
1 AT37G-US40 40' Boom Height (AT40-G) MUST quote ISO option $2,236
2 AT37G-ISO ISO boom - MUST QUOTE for 40' boom height (n/a on base model)$3,937
3 AT37G-GAS Gas Engine -$4,313
4
(A1.)
1 FE POWER EQUIPMENT (Power Locks and Power Windows)$993
2
3 SPOT4 SIX (6) POINT STROBE SYSTEM (LED)$1,073
4 VCAM Backup Camera System $977
5
6
7
8
SOURCEWELL OPTIONS TOTAL:$109,256
(B.)
1 UNIT
2 UNIT & HYDRAULIC ACC Bemis PPF295 Post Puller and Altas LPD-T with adapter, Tool Circuit Rear, Jaw Set $12,059
3 BODY
4 BODY & CHASSIS ACC
5 ELECTRICAL 7 way blade ILO Pin $20
6 FINISHING
7 CHASSIS 2022 Dodge Gas 4x2 ILO Stock Chassis -$3,526
8 OTHER
OPEN MARKET OPTIONS TOTAL:$8,553
SUB-TOTAL FOR UNIT/BODY/CHASSIS:$117,809
Delivery to Customer:$4,668
Material Surcharge:$3,822
Doc/Admin/Tire Tax $135.50
Estimated Use/Sales Tax $11,250.00
TOTAL FOR UNIT/BODY/CHASSIS:$137,685
(C.)
1
2
3
4
Altec Industries, Inc.
SOURCEWELL OPTIONS ON CONTRACT (Unit)
SOURCEWELL OPTIONS ON CONTRACT (General)
OPEN MARKET ITEMS (Customer Requested)
ADDITIONAL ITEMS (items are not included in total above)
AT37G
Quoted for: Town of Los Gatos
Customer Contact:
Phone: / Email:
**Pricing valid for 45 days**
NOTES
PAINT COLOR: White to match chassis, unless otherwise specified
Quoted by: Jason Boblit
Altec Account Manager: William Hamburger
Phone: 309-798-3693 / Email: jason.boblit@altec.com
BUILD LOCATION: Elizabethtown, KY
WARRANTY: Standard Altec Warranty for Aerials and Derricks - One (1) year parts warranty One (1) year labor warranty Ninety (90)
days warranty for travel charges (Mobile Service) Limited Lifetime Structural Warranty. Chassis to include standard warranty, per the
manufacturer.
TRADE-IN: Equipment trades must be received in operational condition (as initial inspection) and DOT compliant at the time of pick-
up. Failure to comply with these requirements, may result in customer bill-back repairs.
CHASSIS: Per Altec Commercial Standard
DELIVERY: No later than __360-390___ days ARO, FOB Customer Location
TERMS: Net 30 days
BEST VALUE: Altec boasts the following "Best Value" features: Altec ISO Grip Controls for Extra Protection, Only Lifetime Warranty
on Structural Components in Industry, Largest Service Network in Industry (Domestic and Overseas), Altec SENTRY Web/CD Based
Training, Dedicated/Direct Gov't Sales Manager, In-Service Training with Every Order.
TO ORDER: To order, please contact the Altec Account Manager listed above.
AT40G Gas Sourcewell 797733-3 with surcharge-PAM Changes v2
ATTACHMENT 1
ATTACHMENT 1
This Page Intentionally Left Blank
ATTACHMENT 2
COUNCIL POLICY MANUAL
TITLE: Town Vehicle and Equipment Acquisition and
Replacement Policy
POLICY NUMBER: 4-05
EFFECTIVE DATE: 4/6/1994
PAGES: 3
ENABLING ACTIONS:
REVISED DATES: 5/26/1998
APPROVED: Mayor Linda Lubeck
PURPOSE
To set forth specific procedures for the acquisition and disposal of vehicle and motorized
equipment used by the Town of Los Gatos.
SCOPE
This policy will apply to the acquisition and disposal of vehicles and equipment used by all Town
Departments.
POLICY
When purchasing vehicles or motorized equipment or disposing of surplus vehicles and
equipment, the following will apply:
A. Replacement of vehicles and motorized equipment is based on an equipment replacement
schedule that allows for replacement on a programmed cycle. The recommended basis is as
follows:
Vehicle/Equipment Type Replacement Cycle
Police Patrol 3 years and/or 85,000 miles
Police Undercover (used, 1 to 2 years old) 4 years and/or 75,000 miles
Police Sedans (used, 1 to 2 years old) 4 years and/or 75,000 miles
Motor Cycles 4 years and/or 42,000 miles
Parking Vehicles 6 years and/or 75,000 miles
All-Terrain Vehicle 8 years and/or 50,000 miles
Police Vans 6 years and/or 85,000 miles
Sedans (new) 8 years and/or 85,000 miles
Small Town Service Community Stewardship Future Focus
TITLE: Town Vehicle and Equipment Acquisition and
Replacement Policy
PAGE:
2 of 3
POLICY NUMBER:
4-05
Vehicle/Equipment Type Replacement Cycle
Sedans (used 1 to 2 years old) 6 years and/or 85,000 miles
Pickups (gas) 8 years and/or 72,000 miles
Pickups (diesel) 12 years and/or 100,000 miles
Medium Trucks (gas) 8 years and/or 80,000 miles
Medium Trucks (diesel) 12 years and/or 100,000 miles
Heavy Trucks (gas) 8 years and/or 80,000 miles
Heavy Trucks (diesel) 15 years and/or 100,000 miles
Lawn Mowers 6 years
Roadable Mowers 8 years
Vans 8 years and/or 100,000 miles
Sweepers 6 years and/or 65,000 miles
Backhoes 10 years and/or 7,000 hours
Loaders 12 years and/or 7,200 hours
Graders 20 years and/or 9,000 hours
Aerial Units 12 years and/or 80,000 miles
Chippers 10 years and/or 5,000 hours
Compressors 12 years and/or 5,000 hours
Forklifts 17 years and/or 9,000 hours
Rollers 15 years
Trailers 10 years
Sprayers 8 years
Sewer Cleaners 6 years
Rodders 10 years
The equipment/replacement list will be used as a guideline in the replacement of vehicles and
equipment. Other factors that will be used in the evaluation process include:
1. Overall conditions of vehicles and equipment
2. Repair records.
3. Vehicle efficiency and safety.
4. Service life related to extended use in other departments.
B. COOPERATIVE PURCHASING PROGRAM:
When purchasing vehicles and equipment, the town of Los Gatos will invite vendors (local
and non-local) to submit bids. Where applicable, the Town will use the State of California
Cooperative Purchasing Program.
TITLE: Town Vehicle and Equipment Acquisition and
Replacement Policy
PAGE:
3 of 3
POLICY NUMBER:
4-05
C. SPECIFICATIONS:
The Department of Parks and Public Works will review all specifications for vehicles and
motorized equipment to be purchased by the Town of Los Gatos. Specifications will be
prepared based on user needs, operating costs, safety factors, life expectancy, new
technology, availability, and cost. When applicable, performance standards will be included
in the specification writing process.
D. VEHICLE AND EQUIPMENT DISPOSAL:
Disposal may take place via trade-in when vehicles or equipment are purchased. If the
trade-in offer is deemed insufficient, the Town will advertise and surplus items at a
minimum pre-determined price. When possible, staff will try to offer specialized vehicles,
such as Police patrol cars, to agencies that need such equipment but may not be able to
purchase new equipment. Prior to the disposal of vehicle or equipment, the Parks and
Public Works Department will determine if reassignment to another department is
warranted.
E. RESPONSIBILITY:
All applicable departments within the Town of Los Gatos who are assigned vehicles or
motorized equipment may be involved in the procurement/disposal process.
1. Finance personnel and the Town Manager shall review the equipment replacement list
annually to ensure that replacement costs for vehicles and equipment are current and
in-line with long-term replacement needs.
2. Each Department is responsible for requesting vehicle or equipment replacement during
the annual budget process.
3. The Parks and Public Works Department will prepare vehicle specifications for all Town
Departments except the Police Department.
4. The Parks and Public Works Department will review all Town specifications for vehicles
and motorized equipment.
5. Disposal or reassignment of surplus vehicles and equipment will be coordinated by the
Parks and Public Works Department.
APPROVED AS TO FORM:
________
/s/ Orry Korb, Town Attorney