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TITLE
Consider a memorandum/resolution authorizing the procurement of fleet replacement vehicles.
SUMMARY
DATE: June 18, 2019
TO: Ronald L. Olson, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Procurement of Fleet Replacement Vehicles
BACKGROUND AND FINDINGS:
Funding for the acquisition of replacement vehicles and equipment was approved as part of the City’s FY 2019 Budget processes. The Fleet Services division maintains an annual vehicle and equipment replacement schedule. The criteria used to establish this replacement schedule is based upon available funding, units per category, age, mileage/hours, repair costs, and department/division feedback. The annual fleet replacement budget for FY 2017 and FY 2018 was $752,155 and $4,444,596, respectively. The FY 2019 Budget includes $4,613,300 for fleet replacement.
There are 51 pieces of equipment that have exceeded their useful life and are proposed for replacement at this time. The number of procurements per category is listed below:
Category Description Qty.
Public Safety 8 Trucks, 7 Cars, 2 Vans, 10 SUVs 27
Public Works 8 Trucks, 1 Van, 1 SUV, 1 Valve Exerciser Trailer 11
Recreation 2 Trucks, 1 Utility Tractor|99|
Support Services 7 Trucks, 3 Vans 10
The existing vehicles being replaced are on average 17 years of age and have an average of 120,000 miles.
THE ALTERNATIVES CONSIDERED:
1.) Defer replacement, which could cause the departments to operate in a reduced resource capacity, incur increased maintenance costs, and lose any remaining residual value in the existing vehicles.
2.) Replace the vehicles in order to provide safe and effective services and achieve the least cost of ownership.
Which alternative is recommended? Why?
The second alternative is recommended in order to meet the departments’ mission and operate in the safest and most cost effective manner.
CONFORMI...
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