06 Staff Report - Vehicle Procurement
PREPARED BY: Steve Regan
Superintendent
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Director
of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 10/1/2019 ITEM NO: 6
DATE: October 1, 2019
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Purchase Two Vehicles from Downtown Ford
Sales in an Amount Not to Exceed $126,376
RECOMMENDATION:
Authorize the Town Manager to purchase two vehicles from Downtown Ford Sales in an
amount not to exceed $126,376.
BACKGROUND:
As part of the Fiscal Year 2019/20 Operating Budget, the Equipment Replacement Fund was
approved, providing funds 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.
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.
PAGE 2 OF 3 SUBJECT: Authorize the Town Manager to Purchase Two Vehicles from Downtown Ford Sales in an Amount Not to Exceed $126,376 DATE: October 1, 2019
BACKGROUND (continued):
The recommended action addresses two assets approved to be replaced in the Parks and Public
Works Department. One vehicle is assigned to Park Services, a 2007 Ford F250 pickup with
76,234 miles, and the second vehicle assigned to the Street Division a, 2008 Ford F250 pickup
with 82,757 miles. The vehicles currently meet the replacement criteria based on miles and
years of service and the identifying criteria for replacement, which is eleven years and/or
72,000 miles.
DISCUSSION:
Staff reviewed multiple vehicle models to determine the best options for replacement taking
into consideration several factors, including staff’s need and use for the vehicle, the vehicle’s
fuel consumption, and the overall cost.
For the Parks Maintenance vehicle, the primary use entails daily service to parks where staff
requires access to a variety of tools, irrigation supplies, and playground parts, as well as vehicle
capacity in the truck bed for hauling waste and small motorized equipment for maintenance
operations.
The Streets Maintenance Program is responsible for maintaining roads, trails and the Heinz
Open Space. The replacement vehicle includes a four-wheel drive system to allow staff the
ability to access the hillside area year around. Currently, the Department is unable to tow any
equipment up the steep gravel roads to respond to downed trees and mud slides, providing
challenges for service response and mitigation of fire hazards. Additionally, the new vehicles
incorporate a mechanical liftgate which allows for one person to load heavy or cumbersome
objects into the bed of the vehicle to increase efficiency and to reduce possible injuries to staff.
In accordance with the Town’s Purchasing Policy, Section 7c (Cooperative Purchasing), 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 (Attachment 2).
CONCLUSION:
Staff recommends that the Town Council authorize the Town Manager to purchase two vehicles
from Downtown Ford Sales in an amount not to exceed $126,376.
FISCAL IMPACT:
There are sufficient funds available in the Equipment Replacement Fund to purchase these
vehicles.
PAGE 3 OF 3 SUBJECT: Authorize the Town Manager to Purchase Two Vehicles from Downtown Ford Sales in an Amount Not to Exceed $126,376 DATE: October 1, 2019
ALTERNATIVE:
Alternatively, the Town Council could direct staff to delay replacement of the vehicles. Staff
does not recommend this alternative as the vehicles have reached the end of their useful life
and the lack of the four-wheel drive vehicle impacts daily productivity specific to responding to
incidents within the open space and trails.
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