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Home My WebLink About01-22-2013 c7 corp yard dump truck replacementr--` j l counci lac en as nepont C I T Y O F S A N L U I S O B I S P O FROM : Daryl Grigsby, Director of Public Works Prepared By : Jeremy Schmidt, Fleet Maintenance Superviso r Timothy Bochum, Deputy Director of Public Work s SUBJECT : CORPORATION YARD DUMP TRUCK REPLACEMENT , SPECIFICATION NO. 91183 RECOMMENDATION S 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 Allianc e (NJPA) Contract #102811-NAF through National Auto fleet, effective January 18, 2012, fo r the purchase of a heavy duty Corporation Yard Dump Truck . 3.Authorize the Finance Director to execute a purchase order to Wondries Fleet Group o f • Alhambra California in the amount of $68,947 .79 for one 2012 Ford F750 Dump Truc k chassis and dump bed . 4.Authorize the Finance Director to execute a purchase order to Marathon Industries, Inc . o f Santa Clarita California in the amount of $18,123 .19 for the purchase and fabrication of on e (1) dump bed for installation on the Ford F750 truck chassis purchased through Wondrie s 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 prescribe d in the Financial Management Manual Section 405-L and 480 and in accordance wit h California Air Resources Board ruling for out-of-state sale .-A. DISCUSSION Backgroun d The Corporation Yard dump truck is an essential piece of support equipment for the Corporatio n 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 1 7 years . Replacement of this dump truck has been deferred in previous Financial Plans due t o economic issues and continued reliability of the vehicle . This vehicle is now 22 years old and ha s exceeded its maximum vehicle life expectancy . More importantly, as explained below the vehicle i s no longer in compliance with California Air Resources Board (CARE) requirements and require s replacement without possibility of deferral . i1/22/1 3 1,.Nmbv C7 C7-1 Dump Truck Replacement- Corporation Yard Pool Vehicle Page 2 • The California Air Resources Board (CARB), as part of Senate Bill (SB 656), required th e installation of Diesel Particulate Filters (DPF) to on-road and off-road vehicles and equipment t o reduce diesel exhaust particulate matter . The Particulate Matter Control Measure affected eight Cit y vehicles assigned to both Public Works and Utilities Departments . To ensure compliance with S B 656, some of the designated vehicles received the required engine particulate filter retrofits an d 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 deferrin g vehicle replacement or DPF retrofit . To be relieved of emission retrofitting requirements, pooled "low-usage" vehicles must maintai n mileage under 1,000 in a calendar year . At the time of the "low-usage" recommendation, th e previous Fleet Maintenance Supervisor and the CARB consultant reviewed vehicle records an d recommended the dump truck for this designation . In August, an annual vehicle records check revealed the 1991 GMC Topkick Dump Truck receive d far greater usage than anticipated ; exceeding the "low-usage" designation. In accordance wit h 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 matte r trap within 90 days . Failure to comply with emission control regulations could result in fines to th e City at a minimum of $1,000 per day until compliance is received . Thus, this issue has a critica l 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 thi s vehicle . At present, there are no approved particulate matter filters available for this vehicle engin e type . CARB has indicated that particulate matter filters will not be developed for the type o f engines used in this dump truck . Changing the engine or chassis type is cost prohibitive an d unlikely to change the non-compliance finding for the vehicle due to current mileage usage . In ligh t of the information presented by CARB, retrofitting this vehicle with an approved particulate matte r 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 Maintenanc e 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 crew s are unable to prepare construction areas and provide routine street repairs . This vehicle is also use d as a backup for other City programs, such as Trees Maintenance, Stormwater and Utilitie s Divisions . Believing that the "low usage" mileage designation would allow continued use of this vehicle th e 1991 GMS Topkick dump truck replacement was deferred and was not anticipated until the 2017-1 8 fiscal year . When the CARB determination was known, staff had to immediately place the truck o n significantly limited duty and get a temporary vehicle for use . Finding a vehicle took approximatel y 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 t o replacing the old dump truck. The current monthly rental equates to the total replacement value o f approximately $90,000 expended in just over five years . • C7-2 Dump Truck Replacement- Corporation Yard Pool Vehicle Page 3 •Staff has concluded that the replacement of this vehicle is essential to City services and should b e replaced immediately . Staff is seeking approval to accelerate the replacement of the 1991 GM C Topkick Dump Truck (Asset 9107) to the 2012-13 FY . Cooperative Purchasin g The City's Financial Management Manual, Section 405-I page 14, recommends fleet purchase s 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 constructio n equipment should generally be acquired new through State of California Multiple Awar d Schedule (CHAS) contracts . Specialized units not generally available through CMAS shoul d generally be acquired new through "piggyback" purchases, where other local agencie s have conducted competitive procurements and made those contracts available to the City . Often CMAS contracts or "piggyback" agreements can provide substantial cash discounts for th e City when making these procurements as well as expedite the purchasing process . Vehicl e acquisition through e an established purchasing agreement saves money when compared with th e costs of an independent purchase . These savings can then be utilized for the purchase of additiona l replacement equipment . • City staff recommends approval to utilize the multi-year cooperative purchasing agreement with th e National Joint Powers Alliance Contract No . 102811-NAF, effective January 28, 2012 (Attachmen t 1), for "Passenger Car, Light Duty, Medium Duty and Heavy Duty Trucks with Relate d Accessories" , to purchase one (1) 2012 Ford F750 Dump truck chassis and dump bed through th e National Auto Fleet Group . National Auto Fleet group has provided a competitively bid quote through NJPA Cooperativ e Purchasing Agreement through its approved vendors : Wondries Fleet Group of Alhambra , California and Marathon Industries, Inc . of Santa Clarita, California . Wondries Fleet Grou p 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 $15,00 0 on the purchases . (Attachment 2) Staff inspected and reviewed the truck for compliance and agrees that the quotation provided b y 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 (Attachmen t 3) Staff inspected and reviewed the truck and dump bed for compliance and agrees that th e quotation provided by Wondries Fleet Group and Marathon Industries, Inc . meets or exceeds th e specifications of the City . • Dump Truck Replacement- Corporation Yard Pool Vehicle Page 4 •FISCAL IMPAC T Funding for this vehicle replacement was not anticipated in the 2011-13 Financial Plan ; however, a s a result of recent CARB determinations, this vehicle will need to be replaced in advance of it s anticipated replacement schedule and supersedes other lower priority replacement projects . Staff recommends Council approve a new capital project, Specification No . 91183, for the Dum p Truck Replacement and the transfer of $88,900 from the Equipment Replacement Fund to suppor t this purchase. Currently, there are sufficient funds available in the Equipment Replacement Fun d identified for fleet replacements ($752,448). Staff further recommends authorization of the Finance Director to make this purchase an d subsequent equipment appurtenances through Wondries Fleet Group, as the approved Cooperativ e Agreement vendor for this vehicle chassis, in the amount of $68,947 .79 (Attachment 4) an d Marathon Industries, Inc . for $18,123 .19 as the approved vendor for the vehicle dump bed . (Attachment 5). Equipment Replacement Fund 41 0 Fleet Replacement Fund Balance* 2012-13 Budget 2,703,189 Project Costs Base Unit Cost (Ford F750 Chassis ) Delivery Sales Tax (7 .75%) $ 62,60 1 $ 1,495 $ 4,851 .59 • Chasis Tota l Base Unit Cost (Dump Bed ) Sales Tax (7 .75%) Dump Bed & Fabrication Cos t City Logo & Accessories $ 68,947 .79 $16,665 $ 1,291 .5 4 $ 17,956 .5 4 2,00 0 Total Project Cos t Fleet Replacement Fund balance remaining *Fleet Replacement Fund balance per Janaury 14, 2013 ALTERNATIVES 1.Deny Purchase.The City Council could defer the replacement of the Corporation Yar d 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 fro m CARB or, long-term deferral of this equipment could incur significant rental fees of $18,70 0 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 fo r alternative fuels such as Compressed Natural Gas or Propane for the fuel type of the vehicle . $ 88,90 0 $ 2,614,289 C7-4 • • Dump Truck Replacement- Corporation Yard Pool Vehicle Page 5 Alternative fuel options are primarily offered in larger duty vehicles such as buses, refus e vehicles and street sweepers . Due to the size of the dump truck it would require extensiv e 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 vehicl e purchased will be immediately compliant with CARB regulations as it will be a tier 4 diese l powered engine ; resulting in lower emissions . ATTACHMENT S 1.National Joint Powers Alliance Cooperative Purchasing Agreement No . 102811-NA F 2.Quotation, Wondries Fleet Grou p 3.Quotation, Marathon Industries, Inc . 4.Purchase Order, Wondries Fleet Group 5.Purchase Order, Marathon Industries, Inc. t:Sundl agenda reports\2013\2013-01-22\ccrporation yard dump truck replacement (grigsby-bachum-Schmidt)\e-count agenda dump truck purchasedo c • Attachment 1 Stu: i 2-, FOR IMMEDIATE RELEAS E NJPA Contract Award Announc ment Vendor Awarded NIPA National Contract for P Light Duty, Medium Duty, and Heavy Duty Trucks With Related Accessories NJPA contracts # 102811 were recently awarded by the NJPA Board of Directors under the category of "Passenger Cart Ugh 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. n response to a national solicitation and resulting competitive bid and evaluatio n Alliance (NWPA) has awarded : art,Inc.102811-DC I Secured Mobility, LLC d eyless Ride 102811-SM L CODA Automotive;102811-CD A Mitsubishi Motors North America (MMNA)102811-MM N Smith Electric Vehicles US 102811-SE V Empire Southwest,LLC dba Empire Truck and Trailer 102811-ESV J Gresham Ford 102811-GET Husky Trucks,LLC 1002811-JITL National Auto Fleet Group 102811-NA F Northside Ford Trucks 102811-NSF the Accessories sub-section of this procurement, NJPA has awarded DriveCam, Inc ., and Keyless Ride it 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/Gresham's joint offering is limited to the Azure Dynamic s 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 NIPA sees very limited overlap in these equpment offerings, therefore NJPA has elected to award these responses and make all of these vehicle options available to our Membership . Staples, MN (lanua+ process, the National Joint P • C7-6 Oshkosh, on behalf of its featured Striker line of ARFF vehicles, is award e fire,and emergency utility vehicles which will be a unique safety equipment asset for o municipals that service airports . Husky Trucks is awarded for their i Mitsubishi is also awarded for their cab equipment offerings is this area of equipment vans, and their Isuzu line of eab .over trucks . ding depth and breadth to NIPA's Finally, National AS Fie4tThOOP-A is awarded for their full line of Cars and Trucks . The NAF respons e 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 ears and trucks, each with an extensive offering o f factory and dealer applied options . National Auto Fleet Group,a subsidiary of a franchised new car deale r demonstrated the ability to sell and service members in all 50 states for the manufacturers including but no t limited to, Ford, Chevy, Nissan and Toyota . Large over the road truck line includes Mac and Volvo . "It was exciting to the seethe vehicle industry support and respond to our national contract concept and nationa l • solicitation, The value and efficiencies to both our members and our vendors will prove and validate this ne w and innovative way to procure vehicles "said NJPA Director of Contracts & Marketing, Mike Radek . About NJPA : The National Joint Powers Alliance* (NJPAI is a municipal contracting goverment agency that serves education an d government agencies nationally through competitively bid and awarded contract purchasing solutions . Over member agencies enjoy the value and commitment of the world class NJPA awarded vendors. Go to wwvrnipac000 are to loin PUPA at no cost, obligation or liability . Learn more about the now over 135 contract solutions available to ou r member agencies. ike Halek Director of Contracts and Marketing!218-894-5477 1pacoop.org C7-7 Attachment 2 r tiU ••• / •• Attachment 2 • na S S S • S S ti0 Attachment 3 • Platbth Jrrrdrs4dt4~ttc ._ oeaatarii»~+urm, w~Nw T ji,kiraiLt:6; . Ua®.4Att6N'2- en Ltiiis44ifa: E77dUseK' Heigkd-t9."t(igi'rTa f ToF+'H0 I:Cxossneml5er `9 ! e[~ers : ritwg~el, ~azs~~t . e oe'.-~V1enpAS'r [.° r T.~'tip rartui r 5eenacHoa DuKp • C7-17 Attachment 3 • Mattel tattle;lntD 0 '8rot8QYn-7;9,&ettlgr Mtb O4060Fal.0300864833kdlinkdbanvalat f W4`lNCil1Tn11CJIBbaY Tet face ItemNa id?Fe??;. Unit Qq Order • UMW*.. Tnsuice DTscalust LOU -Teri lnaimt .d58:a9 Totala "03i't 19 C7-1 8 City of San Luis Obispo Attachment 4 PURCHASE ORDE R PURCHASE ORDER NO . X Send copy to vendor with any attachment s Do not send to vendor 11/20/1 2 3 ENDOR WONDRIES FLEET GROUP SHIP TO CITY OF SAN LUIS OBISP O 25 PRADO ROADADDRESS400SOUTH ATLANTIC BLVD ADDRESS SAN LUIS OBISPO, CA 9340 1ALHAMBRA CA 91801 JEREMY SCHMIDT, FLEET SUP VMIKE LADNER, SALES RE P Bus :626-457-5590 Bus :805-781-704 6 Fax :626-457-5593 Fax:805-781-7537 Quote Number Date Account #Description Amount 10/17/201 2 QUOTE 10/17/12 41050300-91183956-91183410-91183956 Purchase of one (1) Ford F750 Truck Bed Chassi s for the Streets Maintenance Division, pe r consultant's proposal dated 10/17/12 and Specification No . 91183 . $62,601 .2 0 10/17/1 2 QUOTE 10/17/12 41050300-91183956-91183410-91183956 Delivery charges $1,495.0 0 10/17/201 2 QUOTE 11/20/12 41050300-91183956-91183410-91183956 Sales Tax 7 .75%$4,851 .5 9 • TOTAL $68,947 .7 9 Departmen testinq Prepared By Dept Approval Finance/Administration Approva l ublic Works MMUDGET T structions : e artment : Complete form and obtain departmental approval ACCOUNTING USE ONL YP.Attach quotes, bid summaries , CAO report as required by purchasing guidelines). Route to Finance or Admin for approval .Verified By nance : After final approval, assign PO number and return copy to department . Process encumbrance. ity of San Luis Obispo Attachment 5 PURCHASE ORDE R PURCHASE ORDER NO . 3,ra X Send copy to vendor with any attachment s Do not send to vendor 11/20/1 2 3 ENDOR MARATHON INDUSTRIES, INC .SHIP TO CITY OF SAN LUIS OBISP O ADDRESS PO BOX 800279 ADDRESS 25 PRADO ROA D SANTA CLARITA CA 91380 SAN LUIS OBISPO, CA 9340 1 DANA SUMMERS, SALES REPRESENTATIVE JEREMY SCHMIDT, FLEET SUP V Bus : 661-286-1520 Bus : 805-781-704 5 Fax :661-286-1533 Fax :805-781-753 7 Quote Number Date Account #Description Amount QT-026751 10/16/12 41050300-91183956-91183410-91183956 Purchase and fabrication of one 5-7 Cubic Yar d Dump Bed Body & Hoist, Model #3DMP5-7YARD , per consultant proposal dated 10/16/12 for th e Streets Program Dump Bed, Speficiation No . 91183 . $16,665 .0 0 QT-026751 10/16/12 41050300-91183956-91183410-91183956 Sales Tax 7 .75%$1,458 .1 9 TOTAL $18,123 .1 9 Requestinq Department Prepared By Dept Approval Finance/Administration Approva l Public Works MMUDGETT Instructions :ACCOUNTING USE ONL Y 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 .Verified B y Finance : After final approval, assign PO number and return copy to department . Process encumbrance .