HomeMy WebLinkAbout9/1/2004 - STAFF REPORTS (15) DATE: September 1, 2004
TO: City Council
FROM: Director of Public Works/ City Engineer and Director of Procurement and
Contracting
APPROVE A CHANGE ORDER DELETING ONE VEHICLE AUTHORIZED FOR
PURCHASE VIA MINUTE ORDER#7528.
RECOMMENDATION:
That the City Council approve a change order to purchase order #516484 deleting
one 2005 Ford Explorer 4x4 XLS authorized on July 21, 2004 via minute order #
7528.
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
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 2D05 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. 114
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; 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 to purchase the dedicated CNG Silverado truck in
place of the Ford Explorer XLS has been submitted to City Council for approval.
HAROLD E. GOOD, CPPO DAVID BARAKIAN
Director Procurement and Contracting Director, Public Works/ City
Engineer
APPROVED.---
City Manager
ATTACHMENT: Minute Order
MINUTE ORDER NO. 7,Jr`f
APPROVE A CHANGE ORDER TO PURCHASE ORDER#516484
DELETING ONE 2005 FORD EXPLORER 4X4 XLS AUTHORIZED ON
JULY 21, 2004 VIA MINUTE ORDER#7528.
I HEREBY CERTIFY that this Minute Order, approving a change order to
purchase order#516484 deleting one 2005 Ford Explorer 4x4 XLS authorized
on July 21, 2004 via minute order#7528 was adopted by the City Council
of the City of Palm Springs, California, in a meeting thereof held on the 1s`
day of September 2004.
BY: PATRICIA A. SANDERS
City Clerk
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