HomeMy WebLinkAboutItem 6f. Authorize use of Completed Project Funding to Expedite Fleet Replacements Item 6f
Department: Public Works
Cost Center: 5008
For Agenda of: 4/16/2024
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Greg Cruce, Deputy Director – Maintenance Operations
SUBJECT: AUTHORIZE USE OF COMPLETED PROJECTS FUNDING TO
EXPEDITE FLEET REPLACEMENTS
RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, approving the transfer of Completed Project Funding to expedite
approved Fleet Replacements.”
POLICY CONTEXT
In September of 2020, the City Council adopted Resolution No. 11159, which includes
the goal of community-wide carbon neutrality by 2035 and municipal operations by
2030. In August of 2021, Council adopted the “Lead by Example” plan and Resolution
No. 11263, which includes a goal for to the City to eliminate fossil fuel in vehicles and
equipment, with the following objectives:
1. Achieve 100% all-electric light duty vehicles, excluding long range and certain
public safety vehicles.
2. Achieve 50% zero emission medium and heavy-duty vehicles.
3. Achieve 100% all-electric transit fleet.
4. Achieve 100% all-electric equipment, excluding certain heavy-duty equipment,
pumps, and backup generators.
The City reaffirmed Climate Action as a Major City Goal in the 2023-25 Financial Plan.
This unexpected purchasing opportunity has undergone a thorough policy review, and
Council approval is required based section 405 – H, Section 3 of the City’s Financial
Management Manual.
DISCUSSION
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Item 6f
Background
On January 29, 2024, four new Ford Lightnings vehicles were incorrectly shipped to the
City by a dealership from which the City regularly purchases vehicles. While these
vehicles are not required to be purchased by the City, due to recent procurement
challenges of electric vehicles, staff is recommending purchasing these vehicles.
Purchasing these vehicles complies with the City’s Climate Action Goals, accelerates the
City’s “Lead by Example” plan, reduces asset maintenance needs of older more
maintenance intensive internal combustion engines vehicles, and by advancing
replacement of internal combustion engines vehicles reduces the City’s carbon footprint.
Staff reviewed the fleet replacement plan currently approved in the 2023-25 Financial
Plan and determined that one of the four Lightenings could be purchased to replace an
asset identified for replacement this year. Staff also identified three vehicles that, although
not identified for replacement this year in the current financial plan, would benefit the City
by replacing now and advance the City closer to the goal of an 100% all-electric light-duty
fleet by 2030, and a purchase order is pending for these vehicles. The Parking Services
Program within the Public Works Department currently has a fleet asset replacement
scheduled in the 2024-25 Fiscal Year, and the Water Distribution Program within the
Utilities Department has two fleet assets scheduled for replacement in the 2025-26 Fiscal
Year. These three vehicles are recommended for expedited replacement because they
are older vehicles and recently have been problematic with breakdowns, at times leaving
both the Parking Service and Water Distribution programs without the necessary vehicles
to complete their work. Additionally, the two vehicles assigned to the Water Distribution
Program are 2010 Dodge Dakotas, and the City has experienced that replacement parts
have become more challenging to procure requiring staff to find and use parts from an
auto dismantler.
It should be noted that, in addition to the many factors previously mentioned benefiting
the replacement of these vehicles with all electric vehicles, the City will save
approximately $5,000 per vehicle due to the price increase between the 2023 and 2024
models. Additionally, these vehicles are eligible for the $7,500 rebate through the federal
government and may potentially qualify for other local rebates. Staff will apply for all
applicable rebates.
Previous Council or Advisory Body Action
September 2020 – City Council adopted Resolution R-11159, which includes the goal of
community-wide carbon neutrality by 2035 and municipal operations by 2030.
August 2021 – City Council adopted the “Lead by Example” plan, which includes the goal
that the City eliminates fossil fuel in vehicles and equipment by 2030.
September 2022 – City Council adopted the Fleet Replacement Policy.
June 2023 – City Council adopted the 2023-25 Financial Plan, which includes the
recommended fleet replacements within the five-year capital plan.
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Item 6f
Public Engagement
This is an administrative item intended to carry out previously approved plans and
direction, so no public engagement was completed specific to the proposed purchase of
these electric vehicles. Public comment can be provided to the City Council through
written correspondence submitted prior to the meeting and through public testimony
during the meeting.
CONCURRENCE
The Finance and Utilities Departments concur with the proposed expedited replacements.
ENVIRONMENTAL REVIEW
The recommended action is not considered a “Project” under California Environmental
Quality Act (CEQA) Guidelines Section 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-24
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
Parking Fund
(611): Completed
Projects Account
$169,082.85 $60,000 $109,082.85 $0
Water Fund
(601): Completed
Projects Account
$235,845.16 $120,000 $115,845.16 $0
State
Federal
Fees
Other:
Total $404,928.01 $180,000 $224,928.01 $0
To fund the vehicle replacements, the use existing funding within the completed projects
account of Parking Fund and Water Fund is recommended.
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Item 6f
ALTERNATIVES
The City Council could choose to deny the request. This approach is not
recommended as the City would miss a valuable opportunity to procure necessary fleet
replacement assets. Denying this request will result in increased costs, as these vehicles
are invoiced from a 2023 quote. 2024 Lightnings will each cost approximately $5,000
more than the 2023 model delivered. The City is eligible for a $7,500 federal rebate
incentive offered on each Lightning, which may not be applicable in the future. Denying
the request could increase the challenge of meeting our CAP goal of 100% electric light -
duty vehicles by 2030.
ATTACHMENTS
A - Draft Resolution approving funds to expedite approved Fleet Replacements
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R ______
RESOLUTION NO. _____ (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE TRANSFER OF COMPLETED
PROJECT FUNDING TO EXPEDITED APPROVED FLEET
REPLACEMENTS
WHEREAS, in September 2020 the City Council adopted Resolution R-11159,
which includes the goal of community-wide carbon neutrality by 2035 and municipal
operations by 2030; and
WHEREAS, the City Council adopted the “Lead by Example” plan, which includes
the goal that the City eliminates fossil fuel in vehicles and equipment; and
WHEREAS, the City Council adopted the 2023-25 Financial Plan that includes the
recommended fleet replacements within the five-year capital plan; and
WHEREAS, on January 29, 2024, four new Ford Lightnings vehicles were
erroneously shipped to the City by a dealership from which the City regularly purchases
vehicles, and while these vehicles are not required to be purc hased by the City, due to
recent procurement challenges of electric vehicles, staff is recommending purchasing
these vehicles at this time; and
WHEREAS, the City issued a purchase order for one of the four new Fo rd
Lightening vehicles as authorized in the adopted 2023-25 Financial Plan; and
WHEREAS, replacement of the three additional vehicles will reduce replacement
costs, decrease required maintenance and reduce the City’s carbon footprint ; and
WHEREAS, maintaining the City’s fleet is essential to operating programs that
ensure the City of San Luis Obispo’s residents are healthy and safe.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Council authorizes staff to transfer of $60,000 from the Parking Fund
Completed Project Account to expedite the purchase of a new Ford Lightning .
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Resolution No. _____ (2024 Series) Page 2
R ______
SECTION 2. Council authorizes staff to transfer of $120,000 from the Water Fund
Completed Project Account to expedite the purchase of two new Ford Lightnings.
Upon motion of ___________, seconded by ____________, and on the following
roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of ____________________ 202 4.
_______________________
Mayor Erica A. Stewart
ATTEST:
_________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
______________________
Teresa Purrington
City Clerk
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