Execute Agreement with Downtown FordMEETING DATE: 04/07/15
ITEM NO: 9
I
�oy-aA�os COUNCIL AGENDA REPORT
DATE: MARCH 27, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: LES WHITE, INTERIM TOWN MANA E
SUBJECT: CONSIDER AUTHORIZING THE TOWN MANAGER TO EXECUTE AN
AGREEMENT WITH DOWNTOWN FORD FOR THE PURCHASE OF TWO
GASOLINE POWERED FORD F250 REGULAR CAB TRUCKS IN AN
AMOUNT NOT TO EXCEED $84,733
RECOMMENDATION:
Staff recommends that the Town Council consider authorizing the Town Manager to execute an
agreement with Downtown Ford for the purchase of two gasoline powered Ford F250 regular cab
trucks in an amount not to exceed $84,733.
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
currently owns two medium duty Chevrolet trucks with utility bodies that qualify to be replaced
using this policy's criteria.
Staff reviewed multiple vehicle models to determine the best option for replacement. In prior
vehicle purchases, staff has taken into consideration several factors, including staff's need and
use for the vehicle, the vehicle's fuel consumption, and overall costs.
PREPARED BY: MATT MORLEY /bi'
Director of Parks and ub �c 4:r
Reviewed by: WAssistant Town Manager iubTown Attorney Ol/Finance
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: CONSIDER AUTHORIZING THE TOWN MANAGER TO EXECUTE AN
AGREEMENT WITH DOWNTOWN FORD FOR THE PURCHASE OF TWO
GASOLINE POWERED FORD F250 REGULAR CAB TRUCKS IN AN
AMOUNT NOT TO EXCEED $84,733
MARCH 27, 2015
DISCUSSION (cont'd):
Vehicle use includes daily service in parks maintenance where staff requires access to a variety
of tools and equipment as well as vehicle capacity in the truck bed for hauling waste, landscape
product, and larger equipment and materials.
In looking at potential options to replace the two Chevy trucks, staff considered standard
gasoline vehicles and alternative fuel options.
The only competitive alternative fuel option for medium duty trucks is compressed natural gas
(CNG). This option is only available through an aftermarket conversion at a cost of $13,000 per
vehicle. CNG vehicles are no longer sold through dealerships directly; therefore a vehicle must
be converted and fitted with CNG components by a third -party, resulting in an overall higher
purchase cost.
The following additional information about CNG vehicles is relevant to this report:
• The size of a CNG vehicle's fuel tank is limited to 10 gallons, which averages
approximately 130 miles per tank. A medium duty gasoline fueled truck has a 20 gallon
tank, which averages about 260 miles per tank.
• Upgrading fuel capacity requires major modifications to the truck utility body, reducing
storage for tools and equipment needed to perform day to day maintenance operations.
• There are currently no grant matching funds available to offset costs for CNG
conversions.
• Repairs for CNG vehicles cannot be performed in- house, which increases the overall
maintenance costs. Repairs must be performed by an authorized third -party CNG repair
shop with certified technicians, along with proper ventilation systems to evacuate natural
gas in the event of an accidental discharge of gas while performing repairs to the fueling
and storage systems. There is currently only one Ford maintenance facility in the area set
up for CNG maintenance.
• This is the first year of the reintroduction of CNG into the F250 vehicle. Early
implementations can have increased instances of mechanical complications.
• CNG can be cheaper to operate on a per mile basis, however those savings are eroded
when gasoline prices are low. Current savings estimates are approximately 10 %.
• CNG burns cleaner and produces fewer emissions. Carbon dioxide emissions are
approximately 15% lower.
Based on the information above, staff recommends replacing the two medium duty trucks with
two gasoline powered Ford F250 regular cab trucks. The new vehicles are equipped with an
eight cylinder, flex fuel engine. Flex fuel vehicles can utilize both gasoline and ethanol blends.
Ethanol is not readily available, but may be an option in the future. These vehicles are the best
suited options that fit the needs and use of the department, including fuel type, functionality,
maintenance costs, and price. Staff has recommended the two -wheel drive vehicle option, which
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: CONSIDER AUTHORIZING THE TOWN MANAGER TO EXECUTE AN
AGREEMENT WITH DOWNTOWN FORD FOR THE PURCHASE OF TWO
GASOLINE POWERED FORD F250 REGULAR CAB TRUCKS IN AN
AMOUNT NOT TO EXCEED $84,733
MARCH 27, 2015
DISCUSSION (cont'd):
will save on gasoline costs in the long -term when compared to the four -wheel drive option. Staff
will continue to analyze environmental impacts and green technologies as other vehicles are
purchased.
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 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.
CONCLUSION:
Staff recommends that the Town Council consider authorizing the Town Manager to execute an
agreement with Downtown Ford for the purchase of two gasoline powered Ford F250 regular cab
trucks in an amount not to exceed $84,733.
ALTERNATIVES:
Alternatively, the Town Council could authorize the Town Manager to execute an agreement
with Downtown Ford for the purchase of two CNG powered Ford F250 regular cab trucks in an
amount not to exceed $110,733.
FISCAL IMPACT:
There are sufficient funds available in the Equipment Replacement Fund to purchase the two
replacement vehicles as described above.
ENVIRONMENTAL ASSESSMENT:
This is not a project as defined under CEQA and no further action is required.
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