Item 13 - Vehicle Procurement
PREPARED BY: Steve Regan
Superintendent
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and
Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 08/20/2019 ITEM NO: 13
DATE: August 7, 2019
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Purchase Vehicles:
a. Two Police Patrol Vehicles from Folsom Lake Ford in an Amount not to
Exceed $83,263
b. One Maintenance Vehicle from Monarch Rentals in an Amount not to
Exceed $75,891
c. One Maintenance Vehicle from National Auto Fleet Group in an Amount
not to Exceed $95,650.
RECOMMENDATION:
Authorize the Town Manager to Purchase Vehicles:
a. Two Police patrol vehicles from Folsom Lake Ford in an amount not to exceed $83,263.
b. One maintenance vehicle from Monarch Rentals in an amount not to exceed $75,891.
c. One maintenance vehicle from National Auto Fleet Group in an amount not to exceed
$95,650.
BACKGROUND:
As part of the Fiscal Year 2019/20 Operating Budget, the Equipment Replacement Fund was
approved, providing funding for replacement of high mileage or older vehicles that have
reached their replacement criteria or do not meet federal regulations for emissions. The Town
amortizes 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.
PAGE 2 OF 4 SUBJECT: Authorize the Town Manager to Purchase Vehicles DATE: August 7, 2019
BACKGROUND (continued):
The Town Vehicle and Equipment Acquisition and Replacement Policy (Attachment 1)
determines which assets should be replaced by evaluating predetermined age and/or mileage
criteria.
Fleet vehicle replacement purchases are reviewed annually through the Operating Budget and
approved as part of the budget process. There is a total of four assets recommended for
replacement at this time. Two vehicles are assigned to the Police Department patrol division,
one 2014 and one 2015 Ford Explorer, and two assigned to the Parks and Public Works
Department (PPW), a 2001 Ford flatbed truck and a 2002 Ford brush truck, both diesel-
powered.
DISCUSSION:
Police Department Vehicles
The two vehicles recommended for replacement in the Police Department are over four years
old with over 60,000 miles. The vehicles currently meet the replacement criteria for patrol
vehicles of 3 years and/or 85,000 miles. In addition, the lead time for purchasing and equipping
patrol vehicles will result in additional age and mileage.
Ford Motor Company has introduced a pursuit rated hybrid vehicle for police patrol purposes
this year. Extensive idle times make hybrid technology ideal for law enforcement. While
stopped, the lithium hybrid batteries power lights, radios, computers, and other on-board
electrical systems. The hybrid engine can shut off intermittently, self-starting to charge the
battery when needed. This compares with the current need for police patrol vehicles to idle for
extended periods, for example while on the scene of an incident.
The hybrid system reduces fuel consumption and expenditures, carbon dioxide emissions, and
maintenance costs. The combined horsepower rating between the gas motor and hybrid
system are enhanced over the standard gas platform version of the previous model year
Explorers. Fuel economy increases from an average of 17 miles per gallon in town with the
standard gas platform to 24 miles per gallon in the city with the hybrid system. Neighboring
Police Departments such as Santa Clara, San Jose, and others have opted to move to the hybrid
system based on performance and overall cost of operation.
Parks and Public Works Vehicles
PPW currently operates two Ford F450 medium duty trucks which are used in the Public Works
Maintenance Operations to transport materials and tow trailers with equipment to job sites.
PAGE 3 OF 4 SUBJECT: Authorize the Town Manager to Purchase Vehicles DATE: August 7, 2019
DISCUSSION (continued):
The two vehicles that staff recommends replacing are fully amortized in the replacement
program and all necessary funds are available.
The vehicles are 17 and 18 years old and have exceeded the identified criteria for replacement
of 15 years and/or 100,000 miles. The Town Vehicle and Equipment Acquisition and
Replacement Policy is designed to replace vehicles and equipment prior to failure to ensure the
ability of the Town to provide uninterrupted service.
Both vehicles have older diesel engines that are required to be upgraded to Tier 4 standards by
the year 2020. Staff has been recommending light and medium duty vehicles and equipment
purchases (pickups, vans, etc.) with non-diesel engines, which is directly in line with the Town’s
Sustainability Plan in reducing the carbon footprint. The proposed replacement vehicles are
fuel efficient and gas powered. Additionally, the vehicles incorporate safety features such as a
back-up cameras, air ride, and ergonomic seating for the operator.
In considering new versus used vehicles, several factors come into play. Both vehicles are
configured flexibly to meet the broad needs of the department. The proposed brush truck is
used to support the Santa Clara County Work Furlough Program participants. The Weekend
Work Program (WWP) is an alternative program for jail sentences and provides a valuable
service to the community by essentially providing hundreds of free hours to the Town with
participants performing maintenance tasks in parks and streets working alongside of full-time
staff. The brush truck incorporates onboard storage for tools, seating for six, the capacity to
haul large loads of debris during maintenance tasks, and the ability to tow a tree chipper and
other towable equipment used during maintenance operations. The flatbed will be replaced
with a utility body that incorporates storage for tools used in daily maintenance functions
including a small crane to lift heavy object into the back of the truck. Additionally, the new
vehicle configuration allows for consolidation of equipment held between two vehicles into
one, reducing the fleet by one.
A secondary consideration for used vehicles is the overall condition of the vehicle. Used
vehicles of this type come with the risk of having been heavily used and improperly maintained.
This could lead to increased maintenance costs, including significant expense in the
replacement of major components like transmissions. Availability and longevity are key factors
in managing a fleet.
In accordance with the Town’s Purchasing Policy, Section 7 (Cooperative Purchasing), this
purchase is based on a formal bid process completed by the City of San Jose, the State of
California Department of General Services, and Sourcewell purchasing program, which allow
for other municipalities to purchase vehicles using their formal bid proposal documents
(Attachment 2).
PAGE 4 OF 4 SUBJECT: Authorize the Town Manager to Purchase Vehicles DATE: August 7, 2019
CONCLUSION:
Staff is recommending replacement to avoid costly repairs and to maximize the resale value. By
replacing the vehicle now, it will ensure reliable vehicles for staff and continue to meet the
needs of the community and the department. The Equipment Replacement Fund provides
funding for the replacement of high mileage or older vehicles that have reached their
replacement criteria or do not meet federal regulations for emissions.
ALTERNATIVES:
Alternatively, the Town Council could direct staff to delay replacement of the equipment. Staff
does not recommend this alternative as the vehicles have reached the end of their useful life
and the lack of a replacement vehicle will impact daily productivity operations.
FISCAL IMPACT:
There are sufficient funds available in the Equipment Replacement Fund to purchase these
vehicles.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Town Vehicle and Equipment Acquisition and Replacement Policy
2. Bid Proposal Documents
ATTACHMENT 1
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 repla cement 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
ATTACHMENT 2