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Purchase of Ford Escapes AgreementMEETING DATE: 02/03/15 ITEM NO: �os.cTOS COUNCIL AGENDA REPORT DATE: JANUARY 22, 2015 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AGREEMENT WITH DOWNTOWN FORD FOR THE PURCHASE OF TWO COMPACT FORD ESCAPES IN AN AMOUNT NOT TO EXCEED $51,988 RECOMMENDATION: Authorize the Town Manager to execute an agreement with Downtown Ford for the purchase of two compact Ford Escapes in an amount not to exceed $51,988. BACKGROUND: As part of the FY 2014/15 Operating Budget, the Equipment Replacement Fund was approved, providing funds for replacement of high mileage or older vehicles that have reached their replacement criteria. Generally the Town Council does not review individual vehicle purchase requests. Fleet vehicle replacement purchases are reviewed annually through the Operating Budget and approved as part of the budget process. However, due to the combined purchase price of both vehicles, staff wishes to provide this information to Council for review and consideration. DISCUSSION: As part of the Town's Operating Budget, the Equipment Replacement Fund provides funding for the acquisition of Town vehicles, equipment, and information technology greater than $10,000. The Town's Equipment Replacement policy determines which assets should be replaced by evaluating predetermined age and/or mileage criteria. The Parks and Public Works Department has two light duty Ford Ranger trucks that qualify to be replaced using this policy's criteria. The Ford Ranger trucks will be replaced by gas powered Ford Escapes assigned to the Building Maintenance and Engineering divisions. The new vehicles are equipped with a four cylinder, fuel efficient engine with an estimated 22 miles per gallon (mpg) city and 31 mpg highway rating. PREPARED BY: MATT MORLEY X/ � Director of Parks and Public Works Reviewed by: IWAssistant Town Manager PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AGREEMENT WITH DOWNTOWN FORD FOR THE PURCHASE OF TWO COMPACT FORD ESCAPES IN AN AMOUNT NOT TO EXCEED $51,988 JANUARY 22, 2015 DISCUSSION (cont'd): As a part of the Town's Purchasing Policy, the Town Manager is authorized to enter into cooperative purchasing agreements with other governmental entities utilizing the competitive bidding of the other governmental agency. The participation in such an agreement must be in agreement with the bidder who awarded the contract, and the Town Manager must determine that participation in such a group purchasing agreement is for the benefit of the Town. The purchase of this vehicle 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. CONCLUSION: Staff recommends that the Town Council authorize the Town Manager execute an agreement with Downtown Ford sales in the amount not to exceed $51,988. ENVIRONMENTAL ASSESSMENT: This is not a project as defined under CEQA, and no further action is required. FISCAL IMPACT: There are sufficient funds available in the Equipment Replacement Fund to purchase the two replacement vehicles as described above.