REPORT TO THE CITY COUNCIL July 20, 2017 FROM: BRUCE RUDD, Interim Director Department of Transportation BY: JIM SCHAAD, Assistant Director Department of Transportation DUANE MYERS, Fleet Manager Department of Transportation/Fleet Management Division CLIFF TRAUGH, Sr. Management Analyst Department of Transportation/Fleet Management Division SUBJECT ..Title Actions related to purchasing six Elgin CNG Broom Bear street sweepers: 1. Approve purchase contract in the amount of $1,104,705.63 to Haaker Equipment Co Inc. for the purchase of three new Elgin CNG Broom Bear street sweepers for FY2017 2. Approve purchase contract in the amount of $1,104,705.63 to Haaker Equipment Co Inc. for the future purchase of three new Elgin CNG Broom Bear street sweepers in FY2018 3. ***RESOLUTION - 6th amendment to the Annual Appropriation Resolution (AAR) 2017-165 appropriating $1,104,800 in the Fleet Replacement fund (Requires 5 affirmative votes) ..Body RECOMMENDATION Staff recommends Council approve a purchase contract in the amount of $1,104,705.63 to Haaker Equipment Co Inc. for the purchase of three new Elgin CNG Broom Bear street sweepers for FY17, approve a purchase contract in the amount of $1,104,705.63 to Haaker Equipment Co Inc. for the future purchase of three new Elgin CNG Broom Bear street sweepers in FY18, and approve the 6th amendment to the AAR No. 2017-165 appropriating $1,104,705.63 into the Department of Transportation budget for three of the street sweepers (requires five affirmative votes). This standard, approved purchase through another governmental entity is before Council as per the oversight and transparency policy. EXECUTIVE SUMMARY The Street Maintenance Division is requesting the replacement of six street sweeping units at a total cost of $2,209,411.26. The division operates this class of equipment both day and night shifts incurring heavy maintenance costs especially as the equipment ages. As of April 2017 these six units were three years past their recommended replacement date. Staff recommends replacement of the six identified units to ensure the City can continue to provide quality and timely sweeping service to the residents of Fresno. BACKGROUND The Street Maintenance Division is responsible for maintaining the cleanliness of over 1,600 miles of city streets, alleys, and boulevards. This task is accomplished with just 21 units running both day and night shifts. This workload has created a productive fleet but also one that requires considerable maintenance to function effectively. Due to the high cost of this maintenance, the replacement schedule is set at five years or 10,000 hours whichever comes first. This replacement schedule was revised in 2012 after a thorough analysis by the Fleet Division found repair costs were outweighing replacement costs at the less aggressive ten-year replacement schedule. The six units to be replaced are model year 2009 and have been in service for three years beyond the replacement schedule. The purchase price per unit is $368,235.21. This price includes the NJPA discount applied to City purchases, as well as sales tax at 7.975%. This price will be honored through March 2018 for the approved specification. The Purchasing Division has approved this contract and recommends Council approval. ENVIRONMENTAL FINDING By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a "project"; therefore, it is exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference is not applicable because the City is not issuing an RFQ for this purchase through another governmental entity. FISCAL IMPACT These contracts will not impact the General Fund. Funding for three of the new Elgin CNG Broom Bear street sweepers was secured from federal grant funds and approved in the Department of Transportation FY17 budget. The funds were not spent in FY17, and if approved the FY17 funds will be re-appropriated to FY18 to complete this project. The funding for the remaining three Elgin CNG Broom Bear street sweepers was approved in the Department of Transportation FY18 annual budget. Attachment: Resolution Amending the AAR