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02-15-2011 - Award of Bid for the Purchase of Two Propane Truck - Item 4 (2).docCity of West Covina Memorandum A G E N D A TO: Andrew G. Pasmant, City Manager and City Council ITEM NO. 4 DATE February 15, 2011 FROM: Shannon Yauchzee, Director/City Engineer Public Works Department SUBJECT: AWARD OF BID FOR THE PURCHASE OF TWO PROPANE TRUCKS WITH AIR QUALITY MANAGEMENT DISTRICT (AQMD) FUNDS RECOMMENDATION: It is recommended that the City Council authorize the purchase of one propane-fueled Ford F250 pickup truck and one propane-fueled Ford F350 truck with a utility bed from Tuttle Click Ford of Irvine for a total cost of $86,606.99, including sales tax, options, and warranties. DISCUSSION: The City’s Capital Improvement Program (CIP) for Fiscal Year 2010-2011 included $90,000 for the purchase of (3) hybrid vehicles utilizing AQMD subvention funds. After reviewing and prioritizing fleet needs, staff determined that there was a greater need for medium duty alternative fueled trucks. The need for replacing trucks was increased when the funding for (7) trucks was put on hold and then eliminated in 2009. There have been no trucks replaced since 2008. With the lack of general funds for vehicle replacement, it is becoming vital to replace the aging fleet with other available funding whenever practicable. Staff analyzed options available for alternative fueled trucks and determined that with the funding available, two propane-fueled medium duty trucks could be purchased – one propane-fueled Ford F250 pickup truck and one propane-fueled Ford F350 truck with a utility bed. Bid packages were mailed to 11 Ford dealerships. The solicitation of bids was noticed in the San Gabriel Valley Tribune on Monday, December 13, 2010. On Tuesday, January 4, 2011, one bid was received and opened. That bid was from Tuttle Click Ford of Irvine in the amount of $86,606.99, including sales tax, options, and warranties. The purchase of these two Ford propane powered trucks will remove from the City’s fleet two trucks that have higher tail pipe emissions replacing them with trucks that have lower tail pipe emissions to comply with AQMD emission reduction standards. This purchase brings the number of “green” vehicles in the City’s fleet to 36. The trucks to be replaced (129 and 723) cannot be practically utilized elsewhere within the City and are recommended they be surplused by way of public auction. ALTERNATIVES: Reject all bids and re-solicit new bids. Since favorable bids were received, it is unlikely that lower bids will be received. Do not purchase replacement vehicles and continue to make costly repairs on the older vehicles. FISCAL IMPACT: Sufficient AQMD funds were approved in the FY 2010-2011 CIP (119.87.8135.7170) for the purchase of these medium duty propane fueled trucks. Prepared by: David Gandolfi Reviewed/Approved by: Shannon A. Yauchzee Equipment Maintenance Supervisor Director/City Engineer Reviewed/Approved by: Finance