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Home My WebLink AboutCC AG PKT 2013-02-25 #F �`aF t ,N , AGENDA STAFF REPORT $ . r DATE: February 25, 2013 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Sean P. Crumby, P.E., Assistant City Manager/Public Works SUBJECT: FISCAL YEAR 2012-13 FLEET REPLACEMENT — PHASE 1 SUMMARY OF REQUEST: It is requested that the City Council: 1. Adopt Resolution No. 6356 authorizing the City Manager to purchase replacement vehicles and equipment for the City's fleet as follows: • Purchase two (2) Toyota Tacomas -from Hanford Toyota in the amount of$52,520.38 • Purchase four (4) Ford Explorers from Folsom Lake Ford in the amount of$121,863.25 • Purchase four (4) Ford maintenance trucks from Downtown Ford Sales in the amount of$116,546.59 • Purchase two (2) Ford maintenance trucks from Huntington Beach Ford in the amount of$45,815.98 • Purchase one Case Wheel Loader from Sonsray Machinery in the amount of$145,060.50 • Authorize up-fitting of vehicles in an amount not to exceed $71,000. 2. Approve Budget Modification No. 13-08-02 approving $351,000 in additional funds for the purchase of fleet replacement vehicles, equipment and up-fitting costs. BACKGROUND AND ANALYSIS: On June 11, 2012, the City Council adopted the 2012 Fleet Management Plan and directed staff to implement the recommendations contained 'therein. Since that time, the City has hired a new Deputy Director of Public Works and Fleet Program Manager who are actively working to implement the recommended improvements to the City's fleet program. The report immediately recommended purchase of two right drive Jeep Wranglers to be used for parking enforcement. Agenda Item F Those vehicles have been received, up-fitted and deployed in the field for service. Economic constraints have dictated that the City re-examine the conditions under which the fleet has been replaced. Fleet purchases were deferred except in a few instances over the past several years. The 2012 Fleet Management Plan identified a backlog of seventeen vehicles and pieces of equipment that have exceeded their useful service life and require replacement. Deferring replacement of Fleet vehicles beyond their useful service lives results in increased maintenance costs, and lost employee production due to equipment breakdowns and maintenance/repair downtime. The City currently maintains a fleet of 162 vehicles and pieces of equipment, and since 2010 a total of ten vehicles have been replaced of which six were police units (two are right drive Jeep Wranglers) and the other two were lifeguard units. The Fleet Management Report also established a vehicle and equipment replacement schedule based on years of service and mileage. Insofar as the replacement schedule allows the City to effectively plan and budget for vehicle and equipment replacement, the overall goal of the Fleet Management Program is to maximize efficiencies and value. To that end, the Fleet Management Report developed a scoring methodology that further analyzes the condition of each vehicle and piece of equipment to determine if it is possible to extract additional service life, and identify those vehicles and pieces of equipment which require replacement prior to incurring major repair costs or unexpected equipment failures. This process, coupled with an effective vehicle preventative maintenance program, will enhance efficiencies relative to the maintenance and management of the City's fleet. Fleet Replacement—Vehicles to be Replaced A total of 28 vehicles and pieces of equipment were evaluated to determine if they meet the conditions for replacement. The vehicles to be replaced were identified within the Fleet Management Plan. Of those 28 vehicles evaluated, 17 meet the criteria for replacement. Thirteen of those vehicles are recommended for purchase at this time. The remaining 4 vehicles include beach maintenance equipment and a City sewer cleaning and vacuum truck. Additional analysis is being provided on those vehicles. A brief description of additional analysis follows in this report. The remaining 11 vehicles did not meet the scoring threshold for replacement and have additional service life. Those vehicles will be evaluated (scored) annually before the budget season and be recommended for replacement when warranted. The proposed fleet replacement for Fiscal Year 2012-13 is summarized below: • Police Department— 3 patrol units • Public Works — 6 light duty trucks; 1 piece of equipment • Marine Safety— 2 light duty trucks; 1 SUV Page 2 The average age of the vehicles and equipment to be replaced by department is as follows: • Police Department— 8 years • Public Works — 17 years • Marine Safety— 6 years The minimum score for vehicle and equipment replacement is 23 points. A scoring summary of the recommended purchases is as follows: Adopted Vehicle Up-fitting Dept. Description Year Replacement Age Purchase Cost"" Total Cost Score Interval Police Sedan- 2007 4 6 $31,298.56 $10,000 $41,298.56 28 Patrol Police Sedan- 2007 4 6 $31,298.56 $10,000 $41,298.56 28 Patrol Police SUV, Patrol 2001 4 12 $31,298.56 $10,000 $41,298.56 36.7 Lifeguard Pick of 2008 5 5 $26,260.19 $7,000 $33,260.19 N/A* Pat Lifeguard Pick up 2008 5 5 $26,260.19 $7,000 $33,260.19 114/A* Patrol Lifeguard SUV 2004 5 9 $27,967.57 $7,000 $34,967.57 N/A* Public Maintenance 1999 10 14 $19,809.47 $3,000 $22,809.47 36.3 Works Pick up Public Maintenance 1996 10 17 $25,916.63 $3,000 $28,916.63 35.6 Works Pick up Public Maintenance 1991 10 22 $20,389.28 $5,000 $25,389.28 37.6 Works Pick up Public Loader 1993 12 20 $145,060.50 $0 $145,060.50 39 Works Public Maintenance 2003 10 10 $26,006.51 $3,000 $29,006.51 27.8 Works Pick up Public water Truck 2001 10 12 $35,120.34 $3,000 $38,120.34 25.8 Works Public Sewer Truck 1986 10 27 $35,120.34 $3,000 $38,120.34 46.1 Works *The 2012 Fleet Management Report recommended that Marine Safety units be replaced every five years due to their constant exposure to salt air and water. **Estimated cost for up-fitting equipment. Separate competitive bids will be obtained from local vendors per the City's purchase policy. Procurement Process The City's purchasing and contract policies are defined within the City's Municipal Code and Charter. The cost for goods or services to be purchased dictates how they are procured. All of the purchases recommended have Page 3 multiple bids that were submitted. The City utilized bids both from local dealers and the California Multiple Award System (CMAS). The California Multiple Award System (CMAS) is a purchasing system managed by the State of California Department of General Services (DGS). Each year, the DGS issues a state-wide competitive bid for various goods and services such as construction materials, equipment, paper products, heavy equipment and vehicles. Through the competitive bid process, the State awards contracts to vendors for those purchases for the State's use. Local agencies and school districts are also permitted to purchase those goods and services direct from vendors that have been awarded contracts by the State. Since the DGS solicits bids from throughout the state rather than a localized region, a greater number of vendors can be solicited, thus creating a more competitive bidding environment. And because local agencies are able to purchase goods and services through this program, vendors are able to sell their products and services in greater volume, thus creating economies of scale resulting in lower unit costs for local agencies. Local agencies purchasing products through this system can be assured that the established unit prices were competitively bid and can be less expensive than issuing individual bids since the pool of potential customers is much larger. In addition to the State system, the City is also able to "piggy-back" on competitive bids obtained by other local agencies as well as other states to achieve a similar cost savings. The City has purchased vehicles and equipment in the past through CMAS and many states throughout the country have purchasing systems similar to CMAS. Staff compared the costs for light-duty pick-up trucks and police units included in CMAS against another state bid list through the State of Minnesota. The National Joint Powers Association (NJPA) is Minnesota's version of CMAS where vendors submit competitive bids to NJPA and that pricing is then made available to local agencies. The cost for the vehicles under contracts awarded through CMAS was less than the bid amounts contracted through NJPA. In addition, cost proposals were received from Huntington Beach Ford for light- duty pick-ups for use by the Public Works Department. Out of the six vehicles evaluated, Huntington Beach Ford provided a lower cost for two of the pick-ups to be replaced. For equipment not included on state bid lists but available from more than one vendor, multiple cost proposals were solicited to obtain the lowest possible cost for those purchases. The City is also eligible for a $500 per vehicle discount if payment is made to the vendor within 20 days of order submittal for vehicles purchased through CMAS. Phase 2: Beach, Pier and Investigations Unit Replacement Four vehicles and equipment recommendations are not included with this action. Those vehicles include the beach sanitizer, beach sweeper, and sewer vactor (truck and sewer maintenance equipment). An analysis is being performed on those vehicles and will be brought to the City Council in the next few months. Page 4 The City's Pier is not able to be washed down as was historically done given that environmental regulations require that all water used in cleaning operations be contained. The additional analysis includes testing and locating of equipment that can sweep the parking lots and the Pier. Additionally, the Police Department has requested the ability to have vehicle changes for the investigations and undercover operations of their department. The Police Department Investigations Division currently has 3 vehicles assigned to it for use in supporting that operation. An analysis is being performed evaluating such possibilities as returning vehicles, lease options, etc. The 2 recent changes are being analyzed and are anticipated to be brought to the City Council in the next few months with solutions. Cost Proposal Evaluation The cost proposals for vehicles and equipment available through more than one vendor or sourcing contract are as follows*: Fleet Replacement Fund CMAS NJPA Cost Hunt. Pioneer Sons Ray Dept. Desc. Qty Cost Each Beach Equip. Machinery Each Ford Po lice Patrol 3 $26,578 $28,651.80 — Vehicle Lifeguard SLIV 1 $26,578 $28,651.80 Lifeguard Pick-Up 2 $24,168 $25,161.76 Patrol Public Maint. 1 $26,820 $23,992 Works Truck Public Maint. 1 $19,351 $18,254 Works Truck Public Wheel 1 $133,975 $141,350 Works Loader Public Maint. 2 $22,299.24 $18,286 Works Truck Water Fund Department Description Quantity CMAS Cost Each NJPA Cost Each Public Works Water Maint. Truck 1 $26,638 $29,844 Sewer Fund Department Description Quantity CMAS Cost Each NJPA Cost Each Public Works Sewer Maint.Truck 1 $26,638 $29,844 *Costs associated in this table do not include tax, shipping, or upfitting costs, however they are included in the final purchase costs noted in the Summary of Request. Page 5 Vehicle and Equipment Surplus After the vehicles are purchased and up-fitted with necessary equipment and placed into service, the vehicles that were replaced will be sent to auction. The proceeds from those vehicles will be deposited back into the fleet replacement fund. ENVIRONMENTAL IMPACT: There is no environmental impact associated with the purchase of replacement vehicles and equipment for the City's Fleet. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: The total cost for the purchases and up-fitting is $552,806.70. The cost allocation for the replacement of these vehicles and equipment by Fund is as follows: Fund Amount Fleet Replacement Fund $442,639.38 Water Enterprise Fund $55,731.58 Sewer Enterprise Fund $54,435.74 The Fiscal Year 2012-13 Operating Budget includes $262,000 for vehicle and equipment replacement. Approximately $60,000 of those funds have already been spent on the purchase and up-fitting of the two Right Drive Jeep Wranglers. The budget amount was created prior to the scoring of the vehicles and therefore was estimated. The Fleet Replacement Fund has a balance of $1,797,700. Budget modification 13-08-02 in the amount of $351,000 is recommended to provide sufficient funds to replace and up-fit these vehicles and equipment. (Intentionally Left Blank) Page 6 RECOMMENDATION: It is requested that the City Council: 1. Adopt Resolution No. 6356 authorizing the City Manager to purchase replacement vehicles and equipment for the City's fleet as follows: • Purchase two (2) Toyota Tacomas from Hanford Toyota in the amount of$52,520.38; • Purchase four (4) Ford Explorers from Folsom Lake Ford in the amount of$121,863.25; • Purchase four (4) Ford maintenance trucks from Downtown Ford Sales in the amount of$116,546.59; • Purchase two (2) Ford maintenance trucks from Huntington Beach Ford in the amount of$45,815.98; • Purchase one Case Wheel Loader from Sonsray Machinery in the amount of$145,060.50; and • Authorize upfitting of vehicles in an amount not to exceed $71,000 2. Approve Budget Modification No. 13-08-02 approving $351,000 in additional funds for the purchase of fleet replacement vehicles, equipment and up-fitting costs. SUBMITTED BY: NOTED AND APPROVED: Sean P. Crumby, P.E. JiR.aIngram, ity anager Assistant City Manager/Public Works Prepared by: Luis Estevez, Deputy Director of Public Works, Maintenance & Utilities Attachments: A. Resolution No. 6356 B. Agreement Page 7 RESOLUTION NUMBER 6356 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE PURCHASE OF REPLACEMENT VEHICLES AND EQUIPMENT FOR THE CITY'S FLEET AND THE SURPLUSING OF EXISTING VEHICLES AND EQUIPMENT FOR FISCAL YEAR 2012-13 WHEREAS, the City Council adopted the 2012 Fleet Management Plan on June 12, 2012; and WHEREAS, the Fleet Management Plan established a vehicle and equipment replacement schedule and scoring methodology to evaluate the condition of vehicles and equipment requiring replacement; and WHEREAS, twenty-eight vehicles were evaluated and seventeen were determined to require replacement. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves the purchase of thirteen replacement vehicles and pieces of equipment for a total cost of$552,806.70. Section 2. The City Council hereby authorizes the City Manager to approve purchase orders for the replacement vehicles and equipment. Section 3. The City Council hereby authorizes the City Manager to surplus existing vehicles and equipment. Section 4. The Council hereby approves Budget Modification No. 13-08-02 and directs the Director of Finance to modify the Fiscal Year 2012/2013 budget. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 25th day of February, 2013 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Mayor ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6356 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 25th day of February 2013. City Clerk