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HomeMy WebLinkAbout2008-05-06; City Council; 19423; Authorization to purchase a replacement vehicle/V"*<»X CITY OF CARLSBAD ^3jJ/r«g£x " " AB# 19,423 MTG. 5/06/08 DEPT. PW/GS 5 - AGENDA BILL i> » ^~. AUTHORIZATION TO PURCHASE A REPLACEMENT VEHICLE FOR UNIT P654 DEPT. HEADJ^/^7^ CITYATTY. rf^ CITY MGR. ^ \^ / RECOMMENDED ACTION: Adopt Resolution No. 2008-128 authorizing the purchase of a replacement vehicle from Altec Industries, Inc., for unit P654 through the California Multiple Award Schedule. ITEM EXPLANATION: Funds in the amount of $120,000 were appropriated by City Council in the Fiscal Year 2006-07 Fleet-Vehicle Replacement Budget and carried forward for the replacement of P654, an aerial high-lift boom truck. Section 3.28.090 of Carlsbad Municipal Code provides for the Purchasing Officer to purchase equipment through cooperative purchasing programs with another public agency when the agency has made their purchase in a competitive manner. The Fleet Superintendent reviewed similar equipment available from the California Multiple Award Schedule (CMAS). Similar equipment to P654 is available from two manufacturers, Altec Industries, Inc., and Terex. Staff reviewed the equipment available, the procurement costs, availability of local service and warranty information. The equipment available from Altec Industries more closely met the needs of the City of Carlsbad and was available at a significant cost savings over equipment available from Terex. The total cost to procure a replacement is $133,243, including sales tax and documentation fees. CMAS charges a 2% fee totaling $2,665 for use of the agreement resulting in a total procurement cost of $135,908. The total cost results in a capital outlay budget shortfall of $15,908. The Parks Department has paid the full replacement cost for P654 and there are sufficient funds in the Fleet-Vehicle Replacement fund to cover this shortfall. This vehicle is an integral part of Public Works maintenance for the Parks Department. This truck is a specialty vehicle utilized by a 2-3 person crew, to inspect, prune, and maintain approximately 5,700 trees within parks and other civic landscapes, and 200 trees within selective school fields (under joint-use agreements between the City and the school districts). This truck is also utilized in the maintenance and preservation efforts within Hosp Grove and other forested open space parcels. Lastly, it will be utilized for emergency removals of private or public trees that fall or suffer breakage, thereby creating obstructions to safe passage along streets or sidewalks. P654 has been in service since 1998 (10 years), and currently has over 60,000 miles. Under Administrative Order No. 3 guidelines, this truck is due for replacement based on its age. The replacement schedule under Administrative Order No. 3 indicates an expected life of 8 years and/or 80,000 miles for equipment in this class. Due to extensive mechanical issues involving the hydraulic boom, and the anticipated need to rebuild all of the hydraulic rams and associated valve systems, the Fleet Superintendent is recommending replacement at this time. Repeated failures of the hydraulics have been experienced recently and are expected to continue. P654 has experienced out of service times of approximately 15% of usable hours in the past year. Lead time for delivery of a new boom truck is approximately one year. 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 P654 is expected to reach the threshold of 70,000 miles indicated in Administrative Order No. 3 for early mileage replacement in 18 months. Mileage is not a complete indicator of the age and wear of this type of vehicle. In addition to actual road mileage, in order for this equipment to perform its essential functions, the vehicle engine and transmission is operated at all times when the boom system is in operation. This vehicle has operated for over 6,200 hours. Industry sources indicate a conversion rate of one hour of operation to 32 to 55 road miles depending upon operational use. Utilizing a conservative conversion rate of one hour to 33.5 road miles, P654 has the equivalent of approximately 150,000 miles on the power train. P654 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 or hopper, and extended idling or stop-and-go driving. The lifetime repair costs and repair cost trends for P654 were also considered. Through March 30, 2008, the total lifetime repair costs for P654 are over $52,000. In the past year, repair costs incurred exceeded $6,500. Fleet staff has deferred major maintenance of P654 in anticipation of replacement. If P654 is not replaced, future anticipated repairs include the major overhaul of the entire hydraulic system, and overhaul of the major drive train components. The cost of performing a major overhaul of the hydraulic system is estimated to exceed $20,000 and overhaul of the engine is estimated to exceed $12,000. Either repair would result in a loss of use of the vehicle for an extended period of time. The severe service usage, age and condition of the vehicle also lead Fleet Operations to believe that a major mechanical failure of P654 is a strong possibility. Staff did not consider rental as a viable option due to the fact that the Parks Department has a recurring need to operate this vehicle on a daily basis. Staff also does not recommend attempting to lease a vehicle, because our previous analysis has shown that it is not economically advantageous to the City to enter long-term leases for capital equipment of this type. The replacement of P654 has been reviewed by the Fleet Management Committee. The Fleet Management Committee reviews the age, mileage, maintenance expenditures, and appropriateness of the requested replacement vehicle. The Fleet Management Committee recommends replacement of this vehicle. The Fleet Superintendent will prepare P654 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. Sufficient funds from previous appropriations and from budgetary savings through efficiencies are available in the Fleet-Vehicle Replacement Budget to fully-fund the procurement. EXHIBITS: 1. Resolution No. 2008-128 authorizing the purchase of a replacement vehicle from Altec Industries, Inc., for unit P654 through the California Multiple Award Schedule. DEPARTMENT CONTACT: Dale A. Schuck, (760) 802-5788, dschu(o)ci.carlsbad.ca.us 1 RESOLUTION NO. 2008-128 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 3 CARLSBAD, AUTHORIZING THE PURCHASE OF A REPLACEMENT VEHICLE FOR UNIT P654. 4 WHEREAS, $120,000 was previously appropriated to the Vehicle Replacement Budget 5 for the purchase of one aerial high-lift boom truck to replace P654; and 6 WHEREAS, the Fleet Superintendent has reviewed the overall condition, maintenance 7 history, future maintenance needs, and determined it is in the best fiscal interest of the City to 8 replace P654; and 9 WHEREAS, Section 3.28.090 of the Carlsbad Municipal Code provides that the City may 10 participate in cooperative purchasing programs with other public agencies; and 11 WHEREAS, the State of California used formal bidding procedures to establish the 12 California Multiple Award Schedule, which allows other public agencies to procure equipment as 13 awarded by the state; and 14 WHEREAS, the City has procured a quote from Altec Industries, Inc., in accordance with 15 CMAS to procure a like for like replacement of P654 at a cost of $133,245. 16 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, 17 California, as follows: 18 1. That the above recitations are true and correct. 19 2. That the Fleet Superintendent is authorized to initiate a purchase order with 20 Altec Industries, Inc., for the purchase of a replacement vehicle.21 ///22 ///23 ///24 25 '" 26 '" 27 '" 28 '" 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 6th day of May, 2008, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard and Nygaard. NOES: None. ABSENT: None. )RF^INE\M. WOQ (SEAL) (J