TO:Andrew P. Powers, City Manager
FROM:Clifford G. Finley, Public Works Director
DATE:February 27, 2024
SUBJECT: Electric Rideshare Van Purchases and Energy Efficiency and Conservation Block Grant Equipment Rebate
RECOMMENDATION:
1. Approve “piggyback” purchase of six Ford E-Transit 350 Cargo Vans from Creative Bus Sales of Chino, CA, through CalACT/MBTA Contract #20-01 M1 for replacement of assets #5595-039, 5595-040, 5595-041, 5595-042, 5595-043 and #5595-044 for a total cost of $643,459.20.
2. Accept Equipment Rebate Voucher in the amount of $174,360 from U.S.
Department of Energy’s Energy Efficiency and Conservation Block Grant (EECBG) Program and authorize Public Works Director to sign EECBG Program’s Terms and Conditions and other related documents.
3. Authorize budget appropriation in the total amount of $269,360 to the following accounts: $95,000 from A/C #001-0000-438-6100 (FTA Funds); and $174,360 from A/C #001-0000-438-9900 (General Fund – Federal Grants/Other) to A/C #001-5595-631-8400 (Van Equipment Over $5,000).
4. Authorize expenditure in the amount of $643,459.20 from A/C #001-5595-631- 8400 (Van Equipment Over $5,000) partially offset in the total amount of $589,172 by the following accounts: $95,000 by A/C #001-0000-438-6100 (FTA Funds); $174,360 by A/C #001-0000-438-9900 (General Fund – Federal Grants/Other); and $319,812 by A/C #001-5595-631-8900 (Van Fixed Asset Replacement).
5. Find that this action is not a project as defined under the California Environmental Quality Act.
FINANCIAL IMPACT:
$269,360 Increase to Adopted FY 2023-24 General Fund Budget fully offset by $269,360 Increase to Adopted FY 2023-24 General Fund Revenue Budget. $269,360 increase to Adopted FY 2023-24 General Fund Budget is requested for the replacement of rideshare vehicles. This budget increase will be fully offset by
Electric Van Purchases and EECBG Equipment Rebate
February 27, 2024
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1 $174,360 equipment voucher awarded to the City by U.S. Department of Energy under the EECBG Program and $95,000 in Federal Transit Authority (FTA) revenue. The remaining purchase in the amount of $374,099.20 is included in the available FY 2023-24 Van/Carpool Budget. The total purchase of $643,459.20 will be partially offset in the amount of $319,812 in fixed asset replacement funds.
BACKGROUND:
The City's current Rideshare Program includes 43 employees, utilizes 8 alternatively fueled or hybrid vehicles, and has received several awards from the Ventura County Transportation Commission. The cost of operating the program is partially offset by fees charged to the employee participants as well as federal grant funding when available.
Six of the eight vehicles used for the Rideshare Program are scheduled for replacement. As part of the replacement evaluation process, staff examines vehicles and equipment after 10 years of service or 100,000 miles, considering hours or miles of use, mechanical condition, continued safe operation, functionality requirements, and adherence to state emission rules and regulations. Once the vehicles are confirmed to meet the mechanical criteria for replacement and/or adherence to state emission rules and regulations, staff also evaluates the continued business need for the vehicles.
Based on this evaluation process, staff confirms that the assets listed below are still needed to provide internal City services and are recommended for replacement.
Department/
Division Asset Year Existing
Make/Model
Current
Miles
Replacement
Make/Model
DPW / Rideshare 5590-039 2012 Ford E350 85,703 Ford E-Transit 350 Van
DPW / Rideshare 5590-040 2012 Ford E350 86,799 Ford E-Transit 350 Van
DPW / Rideshare 5590-041 2012 Ford E350 84,119 Ford E-Transit 350 Van
DPW / Rideshare 5590-042 2012 Ford E350 93,406 Ford E-Transit 350 Van
DPW / Rideshare 5590-043 2012 Ford E350 109,034 Ford E-Transit 350 Van
DPW / Rideshare 5590-044 2012 Ford E350 49,313 Ford E-Transit 350 Van
All assets meet the age criteria. The mileage of asset 5590-044 is lower due in part to shorter overall commuting route distances and a prolonged period re- establishing routes following the COVID pandemic. These asset replacements will Electric Van Purchases and EECBG Equipment Rebate
February 27, 2024
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1 provide the opportunity to replace the majority of the City’s rideshare vans with zero-emission vehicles (ZEV) while utilizing grant funding.
In April 2023, the City applied for funding to purchase electric fleet vehicles through the U.S. Department of Energy’s Infrastructure Investment And Jobs Act of 2021 EECBG Program formula grant. On January 9, 2024, the City was informed that rebate vouchers for electric vehicle purchases in the amount of $174,360 will be made available to the City after vehicle purchase and upon receipt of signed Terms and Conditions grant acceptance document by the program administrator.
As of January 1, 2024, the California Advanced Clean Fleets (ACF) Regulation took effect which set California Air Resources Board (CARB) rules and standards in place to promote the adoption of ZEVs in the state. The ACF has certain requirements for state and local government agency fleets which includes the following schedule:
1. Between 2024 and 2026, 50 percent of medium and heavy-duty vehicles weighing 8,500 pounds or more being acquired by state or local governments must be ZEV each calendar year, although some exemptions apply.
2. In 2027, the requirement increases to 100 percent of new purchases in these vehicle categories, although some exemptions apply.
3. Beginning with the 2036 model year, all vehicles 8,500 pounds or more, that are produced and delivered for sale in California must be ZEVs. Some exemptions apply.
This schedule is known as the ZEV Purchase Schedule. State or local government fleets can elect to pursue an alternate method of compliance, called the ZEV Milestones Option. This method requires state and local government fleets to meet milestone target percentage rates of fleet vehicles over 8,500 pounds in operation to be ZEVs between 2024 and 2042, ending in 100 percent ZEVs by or before 2042. The milestones and associated due dates vary based on the type of vehicle.
State or local government fleets can “opt-in” to the ZEV Milestones Option any time before January 1, 2030. If they do not choose the ZEV Milestone Option, fleet purchases must comply with the ZEV Purchase Schedule. Staff is currently evaluating both options. At this time, the City’s fleet falls under the ZEV Purchase Schedule by default.
DISCUSSION/ANALYSIS:
This vehicle purchase not only furthers the City’s compliance with state ZEV requirements, it also supports one of the transportation goals in the City’s adopted 2018 Sustainability Plan for Municipal Operations, “Increase number of low- and Electric Van Purchases and EECBG Equipment Rebate
February 27, 2024
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1 no-emission fleet vehicles.” As transportation accounts for over 60 percent of the Citywide greenhouse gas emissions, transitioning to electric vehicles will be a critical component of the City’s Climate and Environmental Action Plan. Electric vehicles not only reduce carbon emissions but also have positive health benefits by reducing air pollution and noise.
On January 16, 2024, City Council approved the purchase of five medium and heavy-duty vehicles with internal combustion engines (ICE). Four of these vehicles were in the vehicle class weighing over 8,500 pounds but are included in the exempt vehicle configurations as noted in the ACF Regulations. The fifth ICE vehicle, the Ford T-150 Transit Cargo Van, weighs less than 8,500 pounds and therefore is not applicable to the ACF Regulations. The purchase of six Ford E- Transit 350 Vans will count as six ZEVs purchased this calendar year, ensuring that the City remains in full compliance with the ZEV Purchase Schedule this year. 2024 Vehicle Purchases
Meets ACF
Regulations for
Vehicles Weighing
8,500 lbs. or
Greater
Configuration
Qualifies as an
ExemptionType of Vehicle Quantity
Yes No Yes No
Ford F-450
Contractor Body 1 x x
Ford F-550 Work
Crew/Crane 1 x x
Ford E-450
Camera Van 1 x x
GapVax Vac Truc 1 x x
Authorized
ICE
Vehicle
Purchases
Ford T-150
Transit Cargo Van 1 x n/a n/a
ZEV
Vehicle
Purchases
Ford E-Transit
350 Van 6 x x
Pursuant to Thousand Oaks Municipal Code Section 3-10.203(b), the City may “piggyback” onto, or join an existing written purchase contract obtained through a competitive bidding process prepared and awarded by another local, state, or federal government agency. The City partners with the California Association for Coordinated Transportation (CalACT)/Massachusetts Bay Transportation Authority (MBTA), which provides a federal and California State-compliant purchasing solution to streamline the required purchasing process to assist local government agencies in obtaining compliant competitive bids on transit vehicles.
All cooperative purchasing contracts from CalACT/MBTA were competitively Electric Van Purchases and EECBG Equipment Rebate
February 27, 2024
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1 solicited and publicly awarded. Piggybacking on a larger contract generally affords better pricing based on their aggregate purchasing volume.
Under the CalACT/MBTA cooperative contract #20-01 M1, effective until 10/31/2025, the City will purchase six (6) vehicles in the amount of $643,459.20 or $107,243.20 each (Attachment #1), receiving a combined discount of $122,646.
Once the new vehicles are received, the existing assets will be listed for sale on the public auction website in accordance with the City’s Purchasing Manual, Chapter 8, Surplus Property, Section 1: “Any and all equipment purchased with public funds shall be accounted for and disposed of in the most profitable way for the government entity.”
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Donald Covarrubias, Fleet Services Supervisor Attachments:
Attachment #1 – Creative Bus Sales Quote
DPW:370-35\ev\Council\2024\022424\EECBG Equipment Rebate and EV Purchase staff report.docx