HomeMy WebLinkAboutItem HAGENDA STAFF REPORT
DATE: September 11, 2017
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Steve Myrter P. E., Director of Public Works
SUBJECT: FISCAL YEAR 2017 -18 FLEET REPLACEMENT
SUMMARY OF REQUEST:
That the City Council adopt Resolution No. 6766:
1. Approving Budget Amendment No. 18 -03 -02 for $10,300;
� SEAS
, 6
Fq
t v CZt
t tP'
`\ C44FORN
2. Authorizing the purchase of two replacement vehicles and
equipment for the City's fleet at a total of $126,573.91, in
accordance with the breakdown set out in this staff report, pursuant
to Seal Beach Municipal Code Section 3.20.025(B);
3. Authorizing the City Manager to approve purchase orders for the
new vehicles, equipment and payment of all State taxes and fees
required for delivery for vehicle and equipment purchases; and,
4. Authorizing the City Manager to surplus existing vehicles and
equipment upon the completion of the new vehicle and equipment
purchase and retrofitting.
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. The
Fleet Management Plan established a vehicle and equipment replacement
schedule based on years of service and mileage. Currently, the replacement
schedule allows the City to effectively plan and budget for vehicle and equipment
replacements. The overall goal of the Fleet Management Plan is to maximize
efficiency and value.
As part of the annual budget process, staff hosted a Budget Study Session on
May 30, 2017, presenting vehicles to be replaced as part of the 2017/18 Fleet
Replacement Program to the City Council.
Agenda Item H
Procurement Process
The City's purchasing and contract policies are set out in the Seal Beach
Municipal Code (SBMC) and Charter. The cost for goods or services to be
purchased dictates how they are to be procured such as through an informal or
formal bidding process. SBMC Section 3.20.025 lists certain exemptions from
the bidding process, including for purchases of a commodity that can be obtained
only from one vendor.
The following are a list of procurement methods used to obtain quotes to
purchase the vehicles.
1. "Piggy- back" — Is a commonly used term to competitively bid contracts
awarded by other National Joint Powers Alliance (NJPA) and State public
agencies to ensure the best pricing for purchases. The following table
shows which vehicle is being purchased through which piggy -back
contract:
Vendor
1- 15 -23 -1
Tractor Loader Coastline Equipment National Joint Powers Alliance
With respect to the tractor loader, National Joint Powers Alliance (NJPA) is a
government agency offering national cooperative contract purchasing solutions
on behalf of its member agencies which include all government, education and
non - profit agencies nationwide. These cooperative contract opportunities offer
both time and money savings for their users by consolidating the efforts of
numerous individually prepared solicitations to one national, cooperatively shared
process. This process leverages the aggregation of volume from members
nationwide. Membership for all members is free and voluntary at no cost to join
and no obligation to participate. The NJPA was used to procure the John Deere
Beach Tractor. The City's purchasing and contract policies allows the City to
purchase directly from the manufacturer.
Vehicle and Equipment Surplus
After the new vehicles are purchased and up- fitted with necessary equipment
and placed into service, the vehicles that were replaced will be sent to auction.
The sales proceeds from those auctions will be deposited back into the fleet
replacement fund.
ENVIRONMENTAL IMPACT:
There is no environmental impact associated with this item.
LEGAL ANALYSIS:
The City Attorney has reviewed and approved as to form.
Page 2
FINANCIAL IMPACT:
In the approved FY 2017 -18 Budget, $80,000 has been allocated from the
Tidelands account to replace the tractor. $100,000 has been allocated from the
Vehicle Replacement Fund to replace and up -fit the police vehicle. The following
is a funding breakdown of the budgeted funds.
Tidelands $80,000
Vehicle Replacement $100,000
Total • 1
Below is a complete breakdown of the recommended vehicle and equipment
purchases:
Due to the final cost of the tractor at $90,282.17 and only $80,000 budgeted from
the Tidelands account, the following Budget Amendment No. 18 -03 -02 is
required to cover the shortfall.
The total cost for the vehicle purchases is $126,573.91. Any remaining funds will
be returned back the original funding source.
RECOMMENDATION:
That the City Council adopt Resolution No. 6766:
1. Approving Budget Amendment No. 18 -03 -02 for $10,300;
2. Approving the purchase of two replacement vehicles, up- fitting and
equipment for the City's fleet at a total of $126,573.91, in accordance
with the following breakdown:
Page 3
3. Authorizing the City Manager to approve purchase orders for the new
vehicles, equipment and payment of all State taxes and fees required
for delivery for vehicle and equipment purchases; and
4. Authorizing the City Manager to surplus existing vehicles and
equipment upon completion of the new vehicle and equipment
purchase and retrofitting.
SUBMITTED BY:
Steve Myrter, P.E.
Director of Public Works
NOTED AND APPROVED:
Prepared by: Michael Ho, P.E., Deputy Director of Public Works
Attachments:
A. Resolution No. 6766
Page 4
LAX
RESOLUTION NUMBER 6766
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING
THE PURCHASE OF REPLACEMENT VEHICLES AND EQUIPMENT
FOR THE CITY'S FLEET, RETROFITTING OF FLEET, AND
AUTHORIZING THE CITY MANAGER TO SURPLUS EXISTING
VEHICLES AND EQUIPMENT FOR FISCAL YEAR 2017 -18
WHEREAS, the City Council adopted the 2012 Fleet Management Plan on
June 12, 2012;
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;
WHEREAS, the City's fleet is evaluated on an annual basis and two existing
vehicles and equipment require replacement;
WHEREAS, the City Council approved funds for replacement vehicles and new
maintenance equipment in the Fiscal Year 2017 -18 Operating Budget; and,
WHEREAS, in accordance with the Seal Beach Charter and the City's
purchasing ordinance set forth in Chapter 3.20 of the Seal Beach Municipal
Code, in order to obtain the replacement vehicles and new maintenance
equipment, the City solicited requests for quotations for purchase of vehicles,
and also determined that the retrofitting of the fleet can be obtained only from
one vendor in order to ensure the standardized retrofitting of the vehicles and
equipment.
NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY
RESOLVE:
Section 1. The City Council hereby approves the purchase of two replacement
vehicles for the City's fleet at a total cost of $126,573.91, in accordance with the
following breakdown:
Section 2. The City Council hereby authorizes the City Manager to approve
purchase orders for the new vehicles, equipment, retrofitting, up- fitting and to pay
all sales tax and fees required for delivery for vehicle and equipment purchases.
Section 3. The City Council hereby authorizes the City Manager to surplus
existing vehicles and equipment upon the completion of the new vehicle and
equipment purchase and retrofitting.
Resolution Number 6766
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a
regular meeting held on the 11th day of September, 2017 by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
Sandra Massa - Lavitt, Mayor
ATTEST:
Robin L. Roberts, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Robin Roberts, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 6766 on file in
the office of the City Clerk, passed, approved, and adopted by the City Council at
a regular meeting held on the 11th day of September, 2017.
Robin L. Roberts, City Clerk