HomeMy WebLinkAbout9/1/2004 - STAFF REPORTS (16) DATE: September 1, 2004
TO: City Council
FROM: Director of Procurement& Contracting and Director of Public Works
APPROVE THE PURCHASE OF ONE DEDICATED CNG VEHICLE.
RECOMMENDATION:
That the City Council approve the purchase of one dedicated CNG Silverado truck
from Sunset Auto Plaza of Banning for the amount of$39,957.22.
SUMMARY:
On July 21, 2004 City Council authorized the purchase of a 2005 Ford Explorer XLS
for use by the Public Works Department. At the time of award, grant funds were
expected to supplement the purchase. The grant source, Mobile Source Reduction
Control (MSRC) which is administered by the South Coast Air Quality Management
District(AQMD) had pre-approved our original recommendation forthe F-150 dedicated
Compressed Natural Gas (CNG) pickup. This item was continued by City Council from
a March meeting into the current fiscal year due to significant revenue uncertainties
within the budget process. During that time frame, the manufacturer announced that
they would not be producing the dedicated CNG vehicle for the 2005 model year.
Attempting to retain those grant funds, we selected our best available option and
substituted a gas/electric Hybrid vehicle. That vehicle did not meet eligibility
requirements for use of the MSRC funds. Working with officials from the AQMD, staff
was directed to the availability of a "special order" dedicated CNG pickup that they
would approve for MSRC funding. The Chevrolet division of General Motors offers a
"special order" dedicated CNG Silverado truck. With the $16,750 grant funds from
MSRC, the net cost to the City of the Silverado truck will be $23,207.22, which is
$1,350.77 less than the $24,557,99 cost of the originally approved Ford Explorer XLS.
BACKGROUND:
The vehicles authorized for purchase on July 21" included two vehicles for use by
the public works department. One gasoline powered SUV and one Hybrid
gasoline%lectric powered SUV. Staff was expecting MSRC grant funding to assist
with purchase of the Hybrid. The Hybrid was determined ineligible by AQMD
because it still used gasoline. Working with officials from the AQMD, staff was
directed to the availability of a "special order" dedicated CNG pickup that they would
approve for MSRC funding. While the purchase price is high ($39,957.22), the
application of grant funding produces a lower overall cost to the City. In addition, we
would be able to maintain our commitment to the use of alternative fueled vehicles.
Desiring to make the most use of available grant funding and continue our
commitment to the use of alternative fueled vehicles, staff is recommending the
following scenario; By eliminating a gasoline powered SUV (the Explorer) from the
already authorized purchase; substituting it with the Hybrid and adding the purchase
of a "special order" dedicated CNG (Silverado); we will be able to make use of the
MSRC grant funds($16,750), as well as a Coachella Valley Air Quality Enhancement
(CVAQE) grant of$10,000 for the Hybrid. So, the net reduction of expenditures for
approving this scenario is $11,350.77.
The Ford Explorer XLS approved by City Council for purchase on July 21, 2004 was
never ordered from the awardee, Ramsey Street Ford, due to the grant funding
issues described above.
A separate request for action rescinding the authorization to purchase the Ford
Explorer XLS has been submitted to City Council for approval via "change order".
Funds for this purchase are available from the referenced grant funds and the
current MVR fund.
Pv-
HAROLD E. GOOD, CPPO DAVID BARAKIAN
Director Procurement and Contracting Director, Public Work
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City Manager ---
ATTACHMENT: Minute Order
MINUTE ORDER NO. `.
APPROVE THE PURCHASE OF ONE DEDICATED CNG
SILVERADO TRUCK FROM SUNSET AUTO PLAZA OF
BANNING FOR THE AMOUNT OF $39,957.22.
I HEREBY CERTIFY that this Minute Order, approving the purchase
of one dedicated CNG Silverado truck from Sunset Auto Plaza of
Banning for the amount of$39,957.22 was adopted by the City Council
of the City of Palm Springs, California, in a meeting thereof held on the 1st
day of September 2004.
BY: PATRICIA A. SANDERS
City Clerk
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