Daryl Grigsby, Director of Public Works Jeremy Schmidt, Fleet Maintenance Supervisor

1/22/13
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FROM:
Prepared By:
SUBJECT:
Daryl Grigsby, Director of Public Works
Jeremy Schmidt, Fleet Maintenance Supervisor
Timothy Bochum, Deputy Director of Public Works
CORPORATION
YARD
SPECIFICATION NO. 91183
DUMP
TRUCK
REPLACEMENT,
RECOMMENDATIONS
1. Approve the Dump Truck Replacement capital project, Specification No. 91183, and the
transfer of $88,900 from the Equipment Replacement Fund balance.
2. Approve the use of Cooperative Purchasing Agreement with National Joint Powers Alliance
(NJPA) Contract #102811-NAF through National Auto fleet, effective January 18, 2012, for
the purchase of a heavy duty Corporation Yard Dump Truck.
3. Authorize the Finance Director to execute a purchase order to Wondries Fleet Group of
Alhambra California in the amount of $68,947.79 for one 2012 Ford F750 Dump Truck
chassis and dump bed.
4. Authorize the Finance Director to execute a purchase order to Marathon Industries, Inc. of
Santa Clarita California in the amount of $18,123.19 for the purchase and fabrication of one
(1) dump bed for installation on the Ford F750 truck chassis purchased through Wondries
Fleet Group.
5. Authorize the surplus designation of the dump truck, Fleet Asset No. 9107 by sale, auction,
trade-in or other method in accordance with the City’s policies and procedures as prescribed
in the Financial Management Manual Section 405-L and 480 and in accordance with
California Air Resources Board ruling for out-of-state sale.-A.
DISCUSSION
Background
The Corporation Yard dump truck is an essential piece of support equipment for the Corporation
Yard staff and various City programs, such as Streets Maintenance, Trees Maintenance, Park
Maintenance, Stormwater and Utilities programs, including emergency response. The current dump
truck, a 1991 GMC Topkick (Asset 9107), was purchased 22 years ago in September 1990. In
accordance with the Fleet Management Policy, dump trucks have an estimated service life of 17
years. Replacement of this dump truck has been deferred in previous Financial Plans due to
economic issues and continued reliability of the vehicle. This vehicle is now 22 years old and has
exceeded its maximum vehicle life expectancy. More importantly, as explained below the vehicle is
no longer in compliance with California Air Resources Board (CARB) requirements and requires
replacement without possibility of deferral.
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Dump Truck Replacement- Corporation Yard Pool Vehicle
Page 2
The California Air Resources Board (CARB), as part of Senate Bill (SB 656), required the
installation of Diesel Particulate Filters (DPF) to on-road and off-road vehicles and equipment to
reduce diesel exhaust particulate matter. The Particulate Matter Control Measure affected eight City
vehicles assigned to both Public Works and Utilities Departments. To ensure compliance with SB
656, some of the designated vehicles received the required engine particulate filter retrofits and
some were placed into a fleet pooled program and registered with CARB as “low-usage” vehicles.
The GMC Topkick dump truck was designated as a pooled “low-usage” vehicle, thereby deferring
vehicle replacement or DPF retrofit.
To be relieved of emission retrofitting requirements, pooled “low-usage” vehicles must maintain
mileage under 1,000 in a calendar year. At the time of the “low-usage” recommendation, the
previous Fleet Maintenance Supervisor and the CARB consultant reviewed vehicle records and
recommended the dump truck for this designation.
In August, an annual vehicle records check revealed the 1991 GMC Topkick Dump Truck received
far greater usage than anticipated; exceeding the “low-usage” designation. In accordance with
emission control regulations (SB 656), CARB states such vehicles not meeting the “low-usage”
designation shall be retired from the fleet, replaced or retrofitted with an approved particulate matter
trap within 90 days. Failure to comply with emission control regulations could result in fines to the
City at a minimum of $1,000 per day until compliance is received. Thus, this issue has a critical
time limit due to potential fines if the truck is not brought into compliance with CARB regulations.
Staff has inquired with CARB to determine if the DPF retrofitting option is available for this
vehicle. At present, there are no approved particulate matter filters available for this vehicle engine
type. CARB has indicated that particulate matter filters will not be developed for the type of
engines used in this dump truck. Changing the engine or chassis type is cost prohibitive and
unlikely to change the non-compliance finding for the vehicle due to current mileage usage. In light
of the information presented by CARB, retrofitting this vehicle with an approved particulate matter
trap is not an available option at this time.
The dump truck is a critical piece of equipment. It is primarily used by the Streets Maintenance
Division for the hauling of asphalt and debris needed in preparation of daily street paving,
maintenance and repair duties. Without this crucial piece of equipment, Streets Maintenance crews
are unable to prepare construction areas and provide routine street repairs. This vehicle is also used
as a backup for other City programs, such as Trees Maintenance, Stormwater and Utilities
Divisions.
Believing that the “low usage” mileage designation would allow continued use of this vehicle the
1991 GMS Topkick dump truck replacement was deferred and was not anticipated until the 2017-18
fiscal year. When the CARB determination was known, staff had to immediately place the truck on
significantly limited duty and get a temporary vehicle for use. Finding a vehicle took approximately
three weeks and has been costing the City approximately $1,500/month for rent. This equates to a
minimum of $18,000/year cost if the City was to continue renting this vehicle as opposed to
replacing the old dump truck. The current monthly rental equates to the total replacement value of
approximately $90,000 expended in just over five years.
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Dump Truck Replacement- Corporation Yard Pool Vehicle
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Staff has concluded that the replacement of this vehicle is essential to City services and should be
replaced immediately. Staff is seeking approval to accelerate the replacement of the 1991 GMC
Topkick Dump Truck (Asset 9107) to the 2012-13 FY.
Cooperative Purchasing
The City’s Financial Management Manual, Section 405-I page 14, recommends fleet purchases
using either a State cooperative purchasing contract or “piggyback” agreements with local agencies.
All Fleet purchases such as Police patrol vehicles, general purpose fire trucks, sedans,
station wagons, passenger vans, light to heavy trucks, utility vehicles, and construction
equipment should generally be acquired new through State of California Multiple Award
Schedule (CMAS) contracts. Specialized units not generally available through CMAS should
generally be acquired new through “piggyback” purchases, where other local agencies
have conducted competitive procurements and made those contracts available to the City.
Often CMAS contracts or “piggyback” agreements can provide substantial cash discounts for the
City when making these procurements as well as expedite the purchasing process. Vehicle
acquisition through e an established purchasing agreement saves money when compared with the
costs of an independent purchase. These savings can then be utilized for the purchase of additional
replacement equipment.
City staff recommends approval to utilize the multi-year cooperative purchasing agreement with the
National Joint Powers Alliance Contract No. 102811-NAF, effective January 28, 2012 (Attachment
1), for “Passenger Car, Light Duty, Medium Duty and Heavy Duty Trucks with Related
Accessories” , to purchase one (1) 2012 Ford F750 Dump truck chassis and dump bed through the
National Auto Fleet Group.
National Auto Fleet group has provided a competitively bid quote through NJPA Cooperative
Purchasing Agreement through its approved vendors: Wondries Fleet Group of Alhambra,
California and Marathon Industries, Inc. of Santa Clarita, California. Wondries Fleet Group
provided a quote on both the vehicle chassis and dump bed to City specifications. By purchasing
through a cooperative agreement, staff estimates that the City is able to save approximately $15,000
on the purchases. (Attachment 2)
Staff inspected and reviewed the truck for compliance and agrees that the quotation provided by
Wondries Fleet Group meets or exceeds the specifications of the City. Marathon Industries, Inc.
provided specifications on the vehicle dump bed and fabrication to City specifications (Attachment
3) Staff inspected and reviewed the truck and dump bed for compliance and agrees that the
quotation provided by Wondries Fleet Group and Marathon Industries, Inc. meets or exceeds the
specifications of the City.
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Dump Truck Replacement- Corporation Yard Pool Vehicle
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FISCAL IMPACT
Funding for this vehicle replacement was not anticipated in the 2011-13 Financial Plan; however, as
a result of recent CARB determinations, this vehicle will need to be replaced in advance of its
anticipated replacement schedule and supersedes other lower priority replacement projects.
Staff recommends Council approve a new capital project, Specification No. 91183, for the Dump
Truck Replacement and the transfer of $88,900 from the Equipment Replacement Fund to support
this purchase. Currently, there are sufficient funds available in the Equipment Replacement Fund
identified for fleet replacements ($752,448).
Staff further recommends authorization of the Finance Director to make this purchase and
subsequent equipment appurtenances through Wondries Fleet Group, as the approved Cooperative
Agreement vendor for this vehicle chassis, in the amount of $68,947.79 (Attachment 4) and
Marathon Industries, Inc. for $18,123.19 as the approved vendor for the vehicle dump bed.
(Attachment 5).
Equipment Replacement Fund 410
Fleet Replacement Fund Balance*
2012-13 Budget
2,703,189
Project Costs
Base Unit Cost (Ford F750 Chassis)
Delivery
Sales Tax (7.75%)
$
$
$
62,601
1,495
4,851.59
Chasis Total
$
68,947.79
Base Unit Cost (Dump Bed)
Sales Tax (7.75%)
$
$
16,665
1,291.54
Dump Bed & Fabrication Cost
$
17,956.54
City Logo & Accessories
2,000
Total Project Cost
$
88,900
Fleet Replacement Fund balance remaining
$
2,614,289
* Fleet Replacement Fund balance per Janaury 14, 2013
ALTERNATIVES
1. Deny Purchase. The City Council could defer the replacement of the Corporation Yard
Dump. Staff does not recommend this option as this piece of equipment is critical to the
support functions of the Corporation Yard and deferring could subject the City to fines from
CARB or, long-term deferral of this equipment could incur significant rental fees of $18,700
annually. At this cost, rental fees for this unit would exceed the purchase price in less than
five years (12 years less than its projected service life).
2. Retrofitting or Alternative Fuel Vehicle Purchase. Staff has investigated retrofitting for
alternative fuels such as Compressed Natural Gas or Propane for the fuel type of the vehicle.
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Dump Truck Replacement- Corporation Yard Pool Vehicle
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Alternative fuel options are primarily offered in larger duty vehicles such as buses, refuse
vehicles and street sweepers. Due to the size of the dump truck it would require extensive
retrofitting to an alternative fuel system that would likely not be cost effective. Due to
budget constraints, staff does not recommend this option. The newer dump truck vehicle
purchased will be immediately compliant with CARB regulations as it will be a tier 4 diesel
powered engine; resulting in lower emissions.
ATTACHMENTS
1.
2.
3.
4.
5.
National Joint Powers Alliance Cooperative Purchasing Agreement No. 102811-NAF
Quotation, Wondries Fleet Group
Quotation, Marathon Industries, Inc.
Purchase Order, Wondries Fleet Group
Purchase Order, Marathon Industries, Inc.
t:\council agenda reports\2013\2013-01-22\corporation yard dump truck replacement (grigsby-bochum-schmidt)\e-council agenda dump truck purchase.doc
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Attachment 1
www.njpacoop.org
National Joint Powers Alliance*
202 ; 2 t h Street Ni
PO
Staples, MN 56479
FOR IMMEDIATE RELEASE
NJPA Contract Award Announcement
Vendor Awarded NJPA National Contract for Passenger Cars,
Light Duty, Medium Duty, and Heavy Duty Trucks With
Related Accessories
National Joint Powers Alliance*
NJPA contracts # 10281J were recently awarded by the NJPA Board of
Directors under the category of "Passenger Cars, Light Duty. Medium
Duty, and Heavy Duty Trucks with Related Accessories." NJPA contracts
are nationally solicited, competitively bid and awarded on behalf of
NJPA current and potential government and education member
agencies.
Staples, MN (January 18, 2012) - In response to a national solicitation and resulting competitive bid and evaluation
process, the National Joint Powers Alliance® (NJPA) has awarded:
DriveCam, Inc.
102811-DCI
Secured Mobility, LLC dba Keyless Ride
CODA Automotive,
Mitsubishi Motors North America (MMNA)
Smith Electric Vehicles US
Empire Southwest, LLC dba Empire Truck and Trailer
102811-SML
102811-CDA
102811-MMN
102811-SEV
102811-ESW
Gresham Ford
102811-GFT
Husky Trucks, LLC
1002811-HTL
National Auto Fleet Group
Northside Ford Trucks
102811-NAF
102811-NSF
Within the Accessories sub-section of this procurement. NJPA has awarded DriveCam, Inc., and Keyless Ride
for their extensive line of vehicle accessory products and equipment.
For the Alt-Fuel subsection of this procurement NJPA has awarded Northside Ford/Gresham Ford, CODA,
Smith Electric, and Mitsubishi each. Northside/Greshanrs joint offering is limited to the Azure Dynamics
Transit Connect Electric vehicles AND the Roush CleanTech LP gas/CNG conversion packages. The CODA,
Smith Electric and Mitsubishi offerings also consist of electric vehicles, however NJPA sees very limited
overlap in these equipment offerings, therefore NJPA has elected to award these responses and make all of these
vehicle options available to our Membership.
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Attachment 1
www.npacoop.org
National Joint Powers Alliance"
202 i ?'h Stn < - t Nfi B:,. 219
Slooles, MN 56479
Oshkosh, on behalf of its featured Striker line of ARFF vehicles, is awarded a contract for their airport snow,
fire, and emergency utility vehicles which will be a unique safety equipment asset for our airport members and
municipals that service airports.
Husky Trucks is awarded for their medium duty line of cargo step-vans, and their Isuzu line of cab-over trucks.
Mitsubishi is also awarded for their cab and chassis truck offering providing depth and breadth to NJPA's
equipment offerings is this area of equipment.
Finally, National Auto Fleet Group (NAF) is awarded for their full line of Cars and Trucks. The NAF response
demonstrated a very innovative web based ordering system featuring pricing and selection of vehicle options
format which allows them to offer over 1200 models of cars and trucks, each with an extensive offering of
factory and dealer applied options. National Auto Fleet Group, a subsidiary of a franchised new car dealer
demonstrated the ability to sell and service members in all 50 states for the manufacturers including but not
limited to, Ford, Chevy, Nissan and Toyota. Large over the road truck line includes Mac and Volvo.
"It was exciting to the see the vehicle industry support and respond to our national contract concept and national
solicitation. The value and efficiencies to both our members and our vendors will prove and validate this new
and innovative way to procure vehicles "said NJPA Director of Contracts & Marketing. Mike Hajek.
AboutNJPA:
The National Joint Powers Alliance® (NJPA) is a municipal contracting government agency that serves education and
government agencies nationally through competitively bid and awarded contract purchasing solutions. Over 35,000
member agencies enjoy the value and commitment of the world class NJPA awarded vendors. Go to www.nipacoop.org
to join NJPA at no cost, obligation or liability. Learn more about the now over 135 contract solutions available to our
member agencies.
Contact: Mike Hajek Director of Contracts and Marketing | 218-894-5477 | [email protected]
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Attachment 2
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Attachment 2
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Attachment 2
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Attachment 2
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Attachment 2
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Attachment 2
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Attachment 2
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Attachment 2
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Attachment 2
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Attachment 3
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Attachment 3
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City of San Luis Obispo
Attachment 4
PURCHASE ORDER
Vendor #
PURCHASE ORDER NO.
Date
11/20/12
X Send copy to vendor with any attachments
Do not send to vendor
VENDOR
WONDRIES FLEET GROUP
ADDRESS 400 SOUTH ATLANTIC BLVD
SHIP TO
CITY OF SAN LUIS OBISPO
ADDRESS 25 PRADO ROAD
ALHAMBRA CA 91801
SAN LUIS OBISPO, CA 93401
MIKE LADNER, SALES REP
JEREMY SCHMIDT, FLEET SUPV
Bus: 626-457-5590
Bus: 805-781-7046
Fax: 626-457-5593
Fax: 805-781-7537
Quote
Number
Date
Account #
Amount
Description
$62,601.20
10/17/2012
QUOTE
10/17/12
41050300-91183956-91183410-91183956
Purchase of one (1) Ford F750 Truck Bed Chassis
for the Streets Maintenance Division, per
consultant's proposal dated 10/17/12 and
Specification No. 91183.
10/17/12
QUOTE
10/17/12
41050300-91183956-91183410-91183956
Delivery Charges
$1,495.00
10/17/2012
QUOTE
11/20/12
41050300-91183956-91183410-91183956
Sales Tax 7.75%
$4,851.59
TOTAL
Requesting Department
Prepared By
Public Works
MMUDGETT
Dept Approval
Instructions:
Department: Complete form and obtain departmental approval. Attach quotes, bid summaries,
or CAO report as required by purchasing guidelines). Route to Finance or Admin for approval.
Finance: After final approval, assign PO number and return copy to department. Process encumbrance.
$68,947.79
Finance/Administration Approval
ACCOUNTING USE ONLY
Verified By
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City of San Luis Obispo
Attachment 5
PURCHASE ORDER
Vendor #
PURCHASE ORDER NO.
Date
11/20/12
X Send copy to vendor with any attachments
Do not send to vendor
VENDOR
MARATHON INDUSTRIES, INC.
ADDRESS PO BOX 800279
SHIP TO
CITY OF SAN LUIS OBISPO
ADDRESS 25 PRADO ROAD
SANTA CLARITA CA 91380
SAN LUIS OBISPO, CA 93401
DANA SUMMERS, SALES REPRESENTATIVE
JEREMY SCHMIDT, FLEET SUPV
Bus: 661-286-1520
Bus: 805-781-7045
Fax: 661-286-1533
Fax: 805-781-7537
Quote
Number
Date
Account #
Amount
Description
QT-026751
10/16/12
41050300-91183956-91183410-91183956
Purchase and fabrication of one 5-7 Cubic Yard
Dump Bed Body & Hoist, Model #3DMP5-7YARD,
per consultant proposal dated 10/16/12 for the
Streets Program Dump Bed, Speficiation No. 91183.
QT-026751
10/16/12
41050300-91183956-91183410-91183956
Sales Tax 7.75%
$1,458.19
TOTAL
Requesting Department
Prepared By
Public Works
MMUDGETT
Dept Approval
Instructions:
Department: Complete form and obtain departmental approval. Attach quotes, bid summaries,
or CAO report as required by purchasing guidelines). Route to Finance or Admin for approval.
Finance: After final approval, assign PO number and return copy to department. Process encumbrance.
$16,665.00
$18,123.19
Finance/Administration Approval
ACCOUNTING USE ONLY
Verified By
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