HomeMy WebLinkAbout2008-02-26; City Council; 19332; Authorization to Purchase a Replacment Vehiclex^^\/*V<5*%i?'ft3V\
CilPy CITY OF CARLSBAD - AGENDA BILL
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AB# 19,332
MTG. 2/26/08
DEPT. PW/GS
AUTHORIZATION TO PURCHASE A REPLACEMENT
VEHICLE AND APPROPRIATE ADDITIONAL FUNDS
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DEPT. HEAD^fy^K
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CITYMGR. (jLA-^
RECOMMENDED ACTION:
Adopt Resolution No. 2008-054 authorizing the purchase of a replacement vehicle
from Kearny Mesa Truck Center for unit S406 and appropriating an additional $28,677 from the
Fleet-Vehicle Replacement fund to the FY 07-08 Fleet-Vehicle Replacement Budget.
ITEM EXPLANATION:
Funds in the amount of $92,000 were appropriated for the replacement of S406, a 10 cubic yard dump
truck. In accordance with Section 3.28.050 of the Municipal Code, the City Clerk published a
Notice Inviting Bids and bid packages were mailed to 16 vendors. On January 23, 2008, eight (8) bids
were received, opened, witnessed, and recorded. The bids ranged from $120,677 to $151,110.
In accordance with the Municipal Code, a best value evaluation was completed. The bjds were
evaluated by staff for cost, responsiveness to specifications, warranty coverage, delivery time, and
any unspecified value-added offerings. The bid submitted by Kearny Mesa Truck Center was
determined to be the best value. This bid totaled $120,677, including sales tax and documentation
fees, resulting in a capital outlay budget shortfall of $28,677. The Street Department has paid the full
replacement cost for S406 and there are sufficient funds in the Fleet-Vehicle Replacement fund to
cover this shortfall.
This vehicle is an integral part of Public Works Construction and Maintenance Operations for the
Street Department. This truck is utilized to transport heavy equipment, aggregate, asphalt, dirt, and
other materials to work sites, and to remove debris from work sites and storm damaged areas.
S406, a 10 cubic yard dump truck has been in service since 1990 (18 years), and currently has over
96,000 miles. Under Administrative Order No. 3 guidelines, this dump truck is due for replacement
based on its age and mileage. The replacement schedule under Administrative Order No. 3 indicates
an expected life of 10 years and/or 80,000 miles for a 10 yard dump truck. S406 is commonly
subjected to severe service. Severe services is defined by the manufacturer as short trips averaging
10 miles or less, towing heavy loads such as a fully loaded trailer, and extended idling or stop and go
driving. The severe service experienced by S406 has resulted in more wear-and-tear than other
vehicles with similar mileage that are not operated in similar severe service capacity.
The lifetime repair costs and repair cost trends for S406 were also considered. Through December
31, 2007, the total lifetime repair costs for S406 are over $88,000. In the past year, repair costs
incurred total $10,945. This is an increase of 300% over the annual average. This expenditure does
not include future needed repairs including the replacement of the automated tarp and upgrades to
the emission system to meet California Air Resources Board retrofitting mandates. The cost of
replacing the tarp system is estimated at $4,000 and the emissions modifications are estimated at
$15,000 for the initial retrofit and continuing costs to service the modifications at approximately
$2,000 per year. The severe service usage, age and condition of the vehicle also lead
Fleet Operations to believe that a major mechanical failure of S406 is a strong possibility.
FOR CITY CLERKS USE ONLY
COUNCIL ACTION:APPROVED &
DENIED D
CONTINUED D
WITHDRAWN D
AMENDED D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER-SEE MINUTES D
Page 2
The California Air Resources Board considers S406 a gross polluter. The Fleet Superintendent retired
S406 from the fleet effective December 31, 2007. Retiring the vehicle at that time allowed the City a
final opportunity to sell the vehicle at auction and not incur the $15,000 cost of retrofitting the
emissions system. The replacement vehicle utilizes a modern systemic approach to reducing
emjssjons and will not require the recurring $2,000 annual maintenance costs to maintain the
emissions system. As the vehicle continues to age, projected repair costs will continue to cjimb.
The equipment is becoming obsolete and repair parts are not readily available. Out-of-service times
have increased because many repair parts are no longer stocked locally and require special ordering.
This has lead to loss of use of the vehicle for extended time periods, and has affected staff
productivity.
Staff researched alternative procurement methods prior to soliciting bids. Staff contacted all rental
firms within Carlsbad. No vehicles of this type were available for rental, nor did we find any similar
vehicles available for rental in close proximity to the City. In addition, staff contacted three different
leasing companies. The vendors included Penske, Dion International, and Miramar Ford Truck.
A proposal was received from Dion International and Miramar Ford Truck. A representative from
Penske stated that leased vehicles of this type were not available. Staff performed a cost benefit
analysis of leasing the truck and found that purchasing the vehicle outright will result in a savings of
approximately $6,000 over entering a lease. Staff determined that this added cost is primarily due to
the fact that interest must be paid to the vendor when vehicles are leased rather than purchased
outright.
The replacement of S406 has been reviewed by the Fleet Task Force. The Task Force reviews the
age, mileage, maintenance expenditures, and appropriateness of the requested vehicle. The Task
Force recommends replacement of this vehicle. The Fleet Superintendent will prepare S406 for sale
at public auction. The proceeds from the auction will be returned to the Fleet-Vehicle Replacement
fund, pursuant to the terms of Administrative Order No. 3.
ENVIRONMENTAL IMPACT:
Procurement of equipment is not a project and is, therefore, exempt from the environmental review
process under provisions of the California Environmental Quality Act (CEQA).
FISCAL IMPACT:
Staff requests that City Council approve the purchase of the vehicle and appropriate an additional
$28,677 to the FY07-08 Fleet-Vehicle Replacement Budget for the procurement.
Sufficient funds are available in the Fleet-Vehicle Replacement fund to fully-fund the appropriation
request.
EXHIBITS:
1. Resolution No. 2008-054 authorizing the purchase of a replacement vehicle
from Kearny Mesa Truck Center for unit S406 and an appropriating an additional $28,677 from
the Fleet-Vehicle Replacement fund to the FY 07-08 Fleet-Vehicle Replacement Budget.
DEPARTMENT CONTACT: Dale A. Schuck, (760) 802-5788, dschu@ci.carlsbad.ca.us
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RESOLUTION NO. 2008-054
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
3 AUTHORIZING THE PURCHASE OF A REPLACEMENT VEHICLE FOR
UNIT S406 AND APPROPRIATION OF ADDITIONAL FUNDS.
4 WHEREAS, $92,000 was previously appropriated to the Vehicle Replacement Budget
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for the purchase of one 10 cubic yard dump truck to replace S406; and
6 WHEREAS, the Fleet Superintendent has reviewed the overall condition, maintenance
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history, future maintenance needs and determined it is in the best fiscal interest of the City to
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replace S406; and
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WHEREAS, eight (8) sealed bids were received on January 23, 2008 for the purchase of
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the vehicle; and
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WHEREAS, the best value bid for the purchase was submitted by Kearny Mesa Ford in
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the amount of $120,677; and
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WHEREAS, an additional appropriation is required to replace this vehicle in the amount
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of $28,677.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
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California, as follows:
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1. That the above recitations are true and correct.
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2. An additional appropriation of $28,677 from the Fleet-Vehicle Replacement Fund
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is approved.
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3. The Finance Director is authorized to appropriate $28,677 from the Fleet-Vehicle
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Replacement Fund to the Fiscal Year 2007-08 Fleet-Vehicle Replacement Budget.
4. That the Fleet Superintendent is authorized to initiate a purchase order with
Kearny Mesa Truck Center for the purchase of a replacement vehicle.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 26th day of February, 2008, by the following vote to wit:
AYES: Council Members Lewis, Kulchin, Hall, Packard and Nygaard.
NOES: None.
ABSENT: None.
CLAUDE A LEWIS, Mayor
ATTEST:
M£/£TO>
LORRAINE M.'WOOD, City Clerk" ' /I
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