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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />NOVEMBER 19, 2012 <br />TITLE: <br />CONTRACT AWARD TO NATIONAL AUTO <br />FLEET GROUP FOR FIVE PROPANE - <br />POWERED FORD UTILITY TRUCKS <br />(SPEC. NO. 12 -055) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1St Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Award a contract to National Auto Fleet Group for five propane - powered Ford utility trucks in an <br />amount not to exceed $469,560. <br />DISCUSSION <br />The Finance and Management Services Agency Facilities, Fleet Maintenance, and Central Stores <br />Division (FMCS) provides vehicles, equipment, and fleet services to City departments. FMCS is <br />responsible for the acquisition, maintenance, repair, and replacement of vehicles, motorcycles, <br />construction apparatus, trucks, and maintenance equipment. <br />The City has embarked on a five -year Alternative Energy Plan to convert 85 percent of the City <br />fleet to alternative energy, reduce our carbon footprint, and reduce green house gases within our <br />community. Additionally, over one third of the 700 pieces of equipment in the City's fleet <br />inventory are due for replacement. To subsidize the acquisition of new equipment, the FMCS <br />Division applied for and was awarded grant funds under the Local Government Match Program <br />launched by the South Coast Air Quality Management District Model Source Reduction <br />Committee (MSRC). <br />The MSRC grant offers a reimbursement of $30,000 per truck for the purchase of alternatively - <br />fueled vehicles. Based on current emission requirements for large trucks under the Air Quality <br />Management District rules, the FMCS Division has identified four diesel - powered trucks for <br />replacement in the current fiscal year budget. The four trucks range from model years 1995 to <br />2001 and have reached their useful lifecycle. The fifth truck is a new water meter service truck <br />and will be an addition to the Public Works Agency's fleet inventory. The grant will reduce the <br />total acquisition cost for the trucks from $469,560 to $319,560 resulting in a savings to the City of <br />$150,000. A four and a half percent contingency is included in the award amount. This action is in <br />concert with our five -year Alternative Energy Plan. Additionally, the propane - powered engines <br />will reduce annual fuel costs for the five vehicles by approximately 40 percent. <br />22C -1 <br />I <br />