Mercury Associates, Inc.
186 Seven Farms Drive, Suite F, PMB #103 • Daniel Island, SC 29492 • (888) 518-3377 City of Patterson, California
Proposal to Provide Comprehensive Fleet Study
March 2025
REVISED 6/25/2025
MERCURY ASSOCIATES, INC. PAGE |3
186 Seven Farms Drive, Suite F, PMB #103 | Daniel Island, SC 29492 www.mercury-assoc.com | (888) 518-3377 3/26/2025
Mr. Xavier Guluarte
Deputy Director of Public Works
1 Plaza
Patterson, CA 95363
Mr. Guluarte:
Pursuant to our recent conversations, Mercury Associates, Inc. (Mercury) is pleased to submit this proposal to provide fleet management support to the City of Patterson, CA. You have graciously inquired about Mercury Associates ability to assist you in a strategic campaign to align the operational needs of your operations with the growing requirement to comply with emissions and environmental goals set forth by the State of California. Our intimate knowledge and participation in the process of compliance and transitioning fleet operations to zero-emissions is unmatched and we are proud to have the opportunity to present this proposed plan to you and the City’s team.
Our approach to fleet management offers a comprehensive, integrated solution that recognizes the interdependencies between different facets of fleet operations. The City of Patterson is committed to advancing sustainability and environmental responsibility by transitioning its municipal fleet to zero-emission vehicles (ZEVs). In alignment with state and federal regulations, including the California Air Resources Board (CARB) mandates and the Advanced Clean Fleets (ACF) regulation, the City seeks a comprehensive and strategic approach to fleet conversion. Our team will develop a detailed roadmap to facilitate this transition efficiently and cost-effectively.
By partnering with the City, we will streamline fleet operations, build a plan to a realistic and attainable fleet compliance plan, mitigate the possibility of fines, produce a right-sizing plan that creates efficiency and opportunity to lessen the exposure to the ACF, and produce a complete transition plan that includes the training of staff in the maintenance garage, operators, and supervisors.
MERCURY ASSOCIATES, INC. PAGE |3
186 Seven Farms Drive, Suite F, PMB #103 | Daniel Island, SC 29492 www.mercury-assoc.com | (888) 518-3377 The City of Patterson faces increasingly stringent
environmental regulations that require a transition
to zero-emission vehicles. The Advanced Clean
Fleets (ACF) regulation establishes specific
deadlines for public fleets to convert to ZEVs:
• 2025: 10% Minimum ZEV Adoption for
Group 1 Vehicles (mainly vans)
• 2027: Minimum 15% ZEV including work
trucks
• 2035: 100% ZEV compliance in Group 1
• 2039: 100% ZEV compliance in Group 2
• 2042: Full ZEV compliance in all Groups
Note: Any ZEV purchased counts toward any group
milestone.
This transition presents both challenges and
opportunities. Our consulting services will help the
City navigate technical, financial, and operational
considerations while maximizing environmental
benefits and potential cost savings over the vehicle
lifecycle.
SCOPE OF SERVICES
1. Fleet Assessment & Data Collection
Objective: Establish a comprehensive baseline of the current fleet to inform strategic decisionmaking and measure future progress.
Deliverables:
1. Current fleet inventory report detailing vehicle types, age, condition, and replacement schedules
2. Vehicle utilization analysis with daily/seasonal usage patterns and mileage data
3. Fuel consumption and emissions baseline report with GHG calculations
4. Stakeholder needs assessment document based on interviews with department representatives
5. Gap analysis identifying operational requirements, ZEV capability limitations, and deficiencies in the City’s current fleet—regardless of fuel type including underutilized MERCURY ASSOCIATES, INC. PAGE |3
186 Seven Farms Drive, Suite F, PMB #103 | Daniel Island, SC 29492 www.mercury-assoc.com | (888) 518-3377 assets, functional redundancies, and unmet operational needs that impact service delivery. The analysis shall inform strategic decisions on ZEV integration, right sizing, and traditional fleet optimization.
2. Phased Fleet Conversion Plan
Objective: Create a detailed roadmap for transitioning to a 100% ZEV fleet by 2040 that aligns with regulatory deadlines while maintaining operational effectiveness.
Deliverables:
1. Comprehensive conversion timeline with specific vehicle replacement schedules by department
2. A comprehensive, vehicle-by-vehicle replacement matrix identifying suitable ZeroEmission Vehicle (ZEV) alternatives for each City fleet vehicle, including an operational assessment of vehicles and equipment that may be downsized, right-sized, or phased out due to limited usage, redundancy, or non-applicability to ZEV regulations. The analysis shall highlight opportunities to reduce overall fleet size or transition to vehicles outside the regulatory scope of the ZEV mandate, such as light-duty non-road equipment or specialty-use assets.
3. Procurement strategy document outlining purchasing vs. leasing recommendations
4. Decision framework for determining optimal timing for new acquisitions vs. retrofitting
5. Contingency plans for addressing technological limitations or ZEV availability challenges
3. Infrastructure & Charging Needs Assessment
Objective: Develop an infrastructure strategy that ensures reliable charging capabilities while minimizing costs and implementation disruption.
Deliverables:
1. Site assessment report identifying optimal locations for charging infrastructure
2. Electrical capacity analysis document detailing current capabilities and required upgrades
3. Charging infrastructure deployment plan with installation timeline and specifications
4. Load management strategy to optimize charging schedules and minimize demand charges
5. Utility coordination roadmap outlining partnership opportunities and implementation steps
4. Cost Analysis & Funding Strategy
Objective: Provide comprehensive financial planning to manage transition costs while maximizing available funding opportunities.
MERCURY ASSOCIATES, INC. PAGE |3
186 Seven Farms Drive, Suite F, PMB #103 | Daniel Island, SC 29492 www.mercury-assoc.com | (888) 518-3377 Deliverables:
1. Total cost of ownership (TCO) analysis comparing conventional vs. ZEV fleet options
2. Capital expenditure projection for vehicle procurement and infrastructure installation
3. Operational expense forecast detailing maintenance, energy, and training costs
4. Comprehensive funding resource guide identifying applicable grants, incentives, and rebates
5. Multi-year budget plan with recommended funding allocations and application timelines
5. Environmental & Operational Impact Assessment
Objective: Quantify the environmental benefits and operational implications of ZEV conversion to support decision-making and public communication.
Deliverables:
1. Emissions reduction forecast showing projected GHG savings over the conversion timeline
2. Performance assessment report addressing range, payload, and operational limitations
3. Maintenance protocol recommendations for ZEV-specific service requirements
4. Risk mitigation plan identifying and addressing potential operational challenges
5. Environmental benefits summary for stakeholder and public communication
6. Workforce Training & Transition Support
Objective: Ensure City staff are prepared to safely and effectively operate and maintain the ZEV fleet.
Deliverables:
1. Staff vs Fleet Ratio - Staffing gap analysis evaluating current Fleet Division staffing levels against operational demands, future ZEV transition workload, maintenance complexity, and projected fleet expansion. This analysis shall identify the number and type of FullTime Equivalent (FTE) positions needed to support the existing and future fleet with adequate technical, administrative, and compliance capacity.
2. Comprehensive training curriculum for operators, maintenance staff, and emergency responders
3. Train-the-trainer program to develop internal expertise
4. Transition support documentation including quick reference guides and troubleshooting resources
5. Staff engagement strategy to build buy-in and address concerns MERCURY ASSOCIATES, INC. PAGE |3
186 Seven Farms Drive, Suite F, PMB #103 | Daniel Island, SC 29492 www.mercury-assoc.com | (888) 518-3377
7. Compliance Monitoring & Reporting
Objective: Establish systems to track progress, ensure regulatory compliance, and demonstrate results.
Deliverables:
1. Compliance tracking dashboard with key performance indicators and regulatory deadlines
2. Automated data collection framework for emissions, efficiency, and cost metrics
3. Regulatory reporting templates aligned with CARB and ACF requirements
4. Progress evaluation methodology with quarterly and annual assessment protocols
5. Continuous improvement framework to adapt to changing regulations or technologies
8. Stakeholder Engagement & Public Communication
Objective: Build support for the ZEV transition through effective engagement and transparent communication.
Deliverables:
1. Progress reporting templates for City Council, department heads, and public audiences, including a commitment by the consultant to present key findings and recommendations at a City Council meeting and, if requested, participate in public workshops as a subject matter expert to support education, transparency, and stakeholder engagement. Available for Council Presentations and/or 2-2-1 and being present for questions from Council and Public. Presentation and Adoption at City Council Meeting.
2. Communication plan with messaging, channels, and timeline for different audiences
3. Public education materials highlighting environmental and economic benefits
4. Progress reporting templates for city council, department heads, and public audiences
9. Implementation Support & Utility Coordination
Objective: Provide ongoing technical assistance to ensure successful initial implementation over the course of the first year and long-term sustainability, with the specific goal of presenting results prior to March 1st, 2026 to inform the following year’s budget.
Deliverables:
1. Implementation action plan with detailed first-year priorities
2. Technical specification guidelines for procurement processes
3. Utility partnership framework with coordination protocols
4. Monthly progress monitoring reports during initial implementation
5. Quarterly strategy adjustment sessions to address emerging challenges MERCURY ASSOCIATES, INC. PAGE |3
186 Seven Farms Drive, Suite F, PMB #103 | Daniel Island, SC 29492 www.mercury-assoc.com | (888) 518-3377
PROJECT TIMELINE
We propose a 12-month engagement with the following phases:
Months 1-2: Fleet assessment, data collection, and stakeholder interviews Months 3-4: Infrastructure assessment and planning
Months 5-6: Development of conversion plan and cost analysis Months 7-8: Creation of training programs and compliance frameworks Months 9-10: Finalization of comprehensive plan and funding strategy Months 11-12: Implementation support and knowledge transfer We propose to provide the services described above for a firm fixed price of $98,470 for all 9 tasks with a timeframe as outlined above.
We recognize that this is not an insignificant cost for our services. We would like to highlight that the intent of this work will be to enhance and maintain a program that will be sustainable following the end of Mercury’s engagement, and to ensure that the City of Patterson has the safest, most reliable fleet to ensure that service to the citizens is of the highest caliber possible.
Having a program that attracts talented staff, retains great teams, and supports the internal stakeholders is our goal for the company.
As discussed, we are prepared to pursue this engagement through our mutual participation in a cooperative purchasing contract, and, subsequently, we have arrived at this price using our cooperative purchasing rates. Mercury is an awarded vendor on Equalis Group cooperative contract #COG-2122 for fleet management consulting and information technology services, as well as OMNIA contract number 05-84, and we welcome the opportunity to engage with the City utilizing either agreement. Additional documentation for our cooperative contracts will be provided upon request.
We continue to consider ourselves honored to be able to understand and provide this work to the City of Patterson as one of our valued partnerships, and we thank you for the opportunity to potentially serve your team. We look forward to hearing back from you. If you have any questions regarding this proposal, please contact me at (202) 306-8127 or dreichmann@mercuryassoc.com.
Sincerely,
Dan Reichmann
Director of Advisory Services
Mercury Associates, Inc.