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2�owt+_.QF IpS�G A�SOS DATE TO: FROM: MEETING DATE: 04/15/13 ITEM NO: COUNCIL AGENDA REPORT APRIL 4, 2013 MAYOR AND TOWN COUNCIL GREG LARSON, TOWN MANAGER SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AGREEMENT WITH FRONTIER FORD FOR THE PURCHASE OF A FORD F450 CAB CHASSIS IN AN AMOUNT NOT TO EXCEED $61,417 RECOMMENDATIONS: Authorize the Town Manager to execute an agreement with Frontier Ford for the purchase of a Ford F450 cab chassis in an amount not to exceed $61,417. BACKGROUND: As part of the approved FY 2012/13 Operating Budget, the Equipment Replacement Fund provides funding for the replacement of high mileage or older vehicles that have become obsolete. Vehicles may also be replaced because they are not in compliance with regulatory measures, such as air emission standards or air quality board regulations. The Town's flatbed utility truck is one of those vehicles that no longer meets the qualifications of the California Air Resource Board's fleet rules, and is recommended for replacement. DISCUSSION: In December 2005, the California Air Resources Board implemented new, specific fleet rules and regulations, which included a mandated amount of diesel particulate matter emissions per agency. Under these new regulations, municipal agencies were given until January 2013 to remove or replace vehicles that are not in compliance. The current vehicle, which is more than 21 years old, is listed in the current equipment replacement schedule. The replacement vehicle will be gasoline powered and will meet all current clean air standards set forth by the Bay Area Quality Management District (BAAQMD). Staff has traditionally purchased utility vehicles with diesel power; however, based on added cost for the engine upgrade ($9,000) versus gasoline power, increased cost for fuel, and long term implications of diesel particulate matter, gas power is the preferred choice long term for this specific vehicle use. PREPARED BY: TODD CAPURSO DIRECTOR OF PARKS AND PUBLIC WORKS Reviewed by: Assistant Town Manager _Town Attorney _! `inance PAGE 2 APRIL 4, 2013 MAYOR AND TOWN COUNCIL SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AGREEMENT WITH FRONTIER FORD FOR THE PURCHASE OF A FORD F450 CAB CHASSIS IN AN AMOUNT NOT TO EXCEED $61,417 DISCUSSION (cont'd): The vehicle purchase cost includes the cab chassis, as well as a dump truck body with a truck mounted arrow board and safety lighting. This vehicle will be used for street maintenance activities and operations in the field. In order to ensure the safety of Town personnel and proper traffic flow, all maintenance work performed in or on the street requires safety lighting notification. This lighting ensures a safe working zone for Town staff and reduces potential vehicle accidents. Equipment Replacement Fund As part of the Town's Operating Budget, the Equipment Replacement Fund provides funding for the replacement acquisition of Town vehicles, equipment and information technology assets greater than $10,000. The Town's Equipment Replacement policy determines which assets should be replaced by evaluating predetermined age and /or mileage criteria. Purchasing Proposal The new flatbed utility truck vehicle cost is based on a bid proposal from Frontier Ford, who also prepared a bid for the City of San Jose. The City of San Jose bid documents contain language that allows other municipalities to purchase vehicles using their formal bid proposal documents. Additionally, according to the Town's Purchasing Policy, the Town Manager is authorized to enter into cooperative purchasing agreements with other governmental entities without separate competitive bidding by the Town, if a governmental agency has solicited bids and awarded a contract for services or materials which the Town desires to obtain. 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. CONCLUSION: Staff recommends that the Town Council authorize the Town Manager execute an agreement Frontier Ford in the amount not to exceed $61,417. ENVIRONMENTAL ASSESSMENT: Purchase of a replacement flatbed utility truck vehicle is not defined under CEQA, and no further action is required. FISCAL IMPACT: If the above recommendation is approved, there are sufficient funds in the Equipment Replacement Program to purchase the flatbed utility truck vehicle.