Title
Department of Transportation recommending the Board:
1) Approve and authorize the Chair to sign a Budget Transfer adjusting the Fleet and Code Enforcement budgets for Fiscal Year 2019-20 to accommodate three (3) replacement additions and one (1) new vehicle;
2) Authorize the Purchasing Agent to utilize the State of California competitively bid contract 1-18-23-23A, 1-18-23-20D and 1-18-23-23D, for the acquisition of one (1) Ford Transit, one (1) Chevrolet Equinox, one (1) Chevrolet Colorado, and one (1) Chevrolet Traverse for the Department of Transportation, Fleet Services Unit;
3) Authorize the Purchasing Agent to sign a purchase order to the awarded state vendor, Elk Grove Auto/Winner Chevrolet of Elk Grove, CA. in the amount of $78,221.44 plus applicable delivery, fees and taxes (estimated at $6,147.33) for a one time purchase for one (1) Chevrolet Equinox, one (1) Chevrolet Colorado and one (1) Chevrolet Traverse following Board approval;
4) Authorize the Purchasing Agent to sign a purchase order to the awarded state vendor, Downtown Ford of Sacramento, CA. in the amount of $35,251.00 plus applicable delivery, fees and taxes (estimated at $2,664.45) for a one time purchase for one (1) Ford Transit following Board approval; and
5) Make findings that these purchases are exempt from competitive bidding in accordance with Purchasing Ordinance 3.1.16, Section D. (4/5 Vote required to approve the budget amendment)
FUNDING: Fleet Internal Service Fund.
Body
DISCUSSION / BACKGROUND
Budgeted appropriations for Fixed Assets: Vehicles in Fleet Operations needs to be increased by $129,000.00 to allow for the purchase of three (3) replacement additions and one (1) new additional Fleet vehicle. This is offset by a decrease in Capitalized Equipment in Fleet Operation in the amount of $129,000.00. Budgeted appropriations for Appropriation for Contingency needs to be increased by $35,000.00 to allow for the transfer in from Code Enforcement to fund the purchase, offset by an increase in Operating Transfers In - Fleet Revenue in Fleet Operations. Budgeted appropriations in Code Enforcement need to be increased by $35,000.00 in Operating Transfers Out, offset by a decrease to Fixed Asset - Vehicles in the amount of $35,000.00.
The replacement of the three (3) additional fleet vehicles listed above is generally determined when the vehicle reaches the targeted mileage standardized by Fleet Management, or replaced due to mechanical costs in which the vehicle is worth less than what it would cost to repair it. Two of the replacement vehicles are being replaced due to mechanical costs and the third is to replace a van that was surplused in 2012 but was never replaced. Fleet has been waiting for an all-wheel drive van for the replacement and Ford now is producing an all-wheel drive Transit to replace it like for like. All vehicle replacements are in accordance with the revised Vehicle Standards approved by the Board of Supervisors on April 11, 2017. Likewise, one (1) new vehicle has been requested to be added to the Fleet for Code Enforcement for inspections that require them to drive off-road.
Department of Transportation, Maintenance and Operations Division issued a comparative market analysis comparing dealer pricing against the various State of California contracts pricing for the acquisition of vehicles that meet the needs of El Dorado County. Comparative market analysis was sent to multiple dealerships who had previously responded to county vehicle bids, no responses were received.
ALTERNATIVES
The Board may elect to not approve the budget transfer and purchase of additional replacement vehicles, however the use of vehicles that are over target mileage may result in unsafe conditions or additional maintenance costs incurred to repair such vehicles.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
It is recommended that the Board approve this item.
FINANCIAL IMPACT
The proposed budget transfer results in no increase to Net County Cost. All increases in expenditures are funded by commensurate offsets or additional revenue.
CLERK OF THE BOARD FOLLOW UP ACTIONS
The Clerk of the Board will obtain the Chair's signature on the original budget transfer and will forward the budget transfer to the Auditor/Controller for processing.
STRATEGIC PLAN COMPONENT
Good Governance, Infrastructure
CONTACT
Rafael Martinez, Director
Department of Transportation