DATE: OCTOBER 8, 2024
DEPARTMENT: PUBLIC WORKS, ENVIROMENTAL MAINTENANCE
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: TERRY MILLEMAN, FLEET MAINTENANCE MANANGER
TITLE: DIRECT PURCHASE OF CITY VEHICLES
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing the Purchasing Agent to directly purchase five (5) vehicles for use by Public Works and Community Development Department employees for a total cost not to exceed $767,661.94.
EXECUTIVE SUMMARY:
Staff recommends that City Council authorize the direct purchase of five (5) vehicles for use by City employees of various departments for a total cost not to exceed $767,661.94. Public Works continues to replace dated and worn-out vehicle fleet and equipment. The FY 2024-25 City Budget provided funding to Departments to purchase new and replacement vehicles. When such vehicles can be located, provided the total cost of each vehicle does not exceed the projected “not to exceed” cost identified in this Report and provided the total cost for all the vehicles does not exceed $767,661.94, the purchases will be completed.
BACKGROUND:
Permit Services will be utilizing the (1) new Toyota Tacoma. The Permit Center has a plan to replace their vehicles every 5 years before any major repairs are needed. They would normally trade their old vehicle in to offset the cost; however, the Fleet Division has identified a need in the Parks Division. Fleet will pay the trade in value of $18,000 from the Fleet replacement fund to keep the older vehicle in service and eventually reallocate the vehicle to the Parks Division. The remaining balance of $28,688.44 is paid by the enterprise fund listed in the Fiscal and Sustainability Impact section. This would save the City about $30,000 by not purchasing a brand-new truck for the Parks Division next year.
The Facilities Division will be receiving (1) new replacement Ford F450 graffiti truck to remove and clean graffiti throughout the City of Salinas. Their old van PW-32 was decommissioned last year due to major mechanical failures. They are currently using two vehicles to accomplish the work needed. This new truck will make it more efficient for the graffiti abatement crew to complete their workload.
The Streets Division will receive (2) new replacement F350 flatbed trucks. These (2) trucks will replace PW-98 and PW-21 that are in serious need of replacement. PW-21 is 22 years old and has over 107,000 miles on it. PW-98 is 25 years old and has over 140,000 miles on it. Both vehicles are well passed the 17-year replacement guidelines. Fleet working with the Streets Division has determined the ½ ton trucks that are currently being used are under rated for the department’s needs. Fleet is recommending upgrading the new trucks to 1-ton trucks. These trucks are used in hauling materials and tools for street paving and repair.
The Streets Division will also receive (1) new replacement dump truck to replace PW-685. This dump truck is 24 years old and doesn’t meet California’s emission standards. The new dump truck will be used to transport materials for street paving and sidewalk repair projects. It is also used for homeless cleanup needs throughout the city of Salinas.
The Salinas Plan identified the following goal related to Operational Efficiencies: “Implement a Citywide fleet strategy to centralize fleet operations, contract out non-routine fleet repair and maintenance functions, and develop fleet tracking, rightsizing, and replacement plans.” In 2021, Public Works implemented Fleetio, a fleet management software, to track and manage Citywide fleet vehicles and operations. Also in 2021, the City developed a Fleet Replacement Plan to focus on standardization of vehicles, establishment of replacement cycles.
Over the last few years, all Departments have sometimes struggled with purchasing fleet vehicles. Departments have spent significant time trying to locate or order new and replacement vehicles as not all vehicles are consistently available for purchase via State Contract, and local dealerships are often charging premiums on desired vehicles. When vehicles do become available, or State Contract order windows open, dealerships ask for an immediate commitment or issuance of a purchase order which requires City Council approval. In the case of most vehicles available via State Contract, the next model year pricing and order window have not yet been established but we have been told that orders will be cancelled if a purchase order is not generated within 30 days. Given the challenge with locating available vehicles at competitive cost we are requesting authorization to purchase target vehicles, once located, if the total cost for each vehicle does not exceed the projected “not to exceed amount” identified, and the total for all the vehicles does not exceed the total amount identified in this Report.
The chart contained within this report identifies the target vehicle and pricing information for each vehicle needing to be purchased. Each vehicle has a Not to Exceed (NTE) total which represents the maximum purchasing authority granted. Additionally, purchases may not exceed the total fleet-related appropriations within the Fleet Division’s FY 2024-25 budget. Target vehicles are identified, though substitutions to equivalently priced and equipped vehicles may be necessary due to inventory challenges. Purchases of alternate makes or models will be subject to review and approval by the City’s Fleet Manager based upon how the vehicles fit within the City vehicle standardization framework, ability to provide internal maintenance and repair services, and projected vehicle reliability. The Fleet Division will make every effort to purchase locally if within the purchasing preference threshold, but given market conditions and vehicle availability, that may not be possible.
All requested purchase amounts utilize the most recent publicly available State Contract rate as the underlying pricing source. We have incorporated the 9.25% sales tax for the City of Salinas, as well as $1,000 to account for any potential dealer fees. The State contract price is below the Manufacturers Suggested Retail Price (MSRP) price, or the price available via local dealerships, thus we are requesting authorization of a contingency amount to allow for the higher price. Additionally, the dealerships are still transitioning to the new model year, while listed State contract prices are based upon current model year which can no longer be ordered. To account for an anticipated new model year price increase we have calculated a 25% contingency for each vehicle.
Target Vehicle
Pricing Resource
Qty
Per-Vehicle Price
Taxes & Fees
25% Contingency
NTE
Toyota Tacoma (or alternate small truck)
State Contract
1 33,273
4,077.75
9,337.69
46,688.44
Ford F450 graffiti truck (or alternate truck chassis)
State Contract
1 160,348.44
15,832.23
44,045.17
220,225.84
Ford F350 Flatbed (or
Alternate truck chassis)
State Contract
2 54,883.10
6,076.68
15,239.95
152,399.48
Peterbilt 12–14-yard Dump truck (or Alternate truck chassis) State Contract
1 254,168.00
24,510.54
69,669.64
348,348.18
TOTAL VEHICLES
5 NOT TO EXCEED (NTE) TOTAL
767,661.94
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
Yes
STRATEGIC PLAN INITIATIVE:
Approving the proposed resolution will support the City Council’s Strategic Plan Goals of providing Operational Efficiencies, Public Safety and Effective and Culturally Responsive Government.
DEPARTMENTAL COORDINATION:
Fleet Maintenance, in coordination with Community Development, Street Maintenance, Facility Maintenance selected the appropriate vehicles based on typical usage and demand. The Finance Department will coordinate the purchase and title change.
FISCAL AND SUSTAINABILITY IMPACT:
Fund
Appropriation
Appropriation
Name
Total Appropriation
Amount for recommendation
FY 24-25 Operating Budget Page
Last Budget Action (Date, Resolution) *
6900
30.3350.66-5500
Capital Outlays
Vehicles
$35,000
$28,688.44
368
6/11/24, 22979
7121
50.5233-66.5500
Capital Outlays
Vehicles
$907,115.00
$738,973.50
413
6/11/24, 22979
* The FY 24-25 Adopted Budget was adopted on June 11, 2024.
ATTACHMENTS:
City Council Resolution
Page | 2
Page | 1
CITY OF SALINASCOUNCIL STAFF REPORTCITY OF SALINASCOUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT