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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