Report Prepared by: Cosmo Ordunez, Public Works Manager-Internal Services
Title
SUBJECT: Approval to Purchase One (1) New Ford E-Transit Cargo Van Equipped with Flexitrax C550 System, and Necessary Attachment Equipment, from WECO Industries in the Amount of $249,862.65 for the Sewer Division
REPORT IN BRIEF
Considers approving the purchase of one new Ford E-Transit Cargo Van equipped with Flexitrax C550 System, in the amount of $249,862.65. Staff has identified a vehicle that will not only aid their operation but allow the City to become compliant with California Code of Regulation Section 1962 (Zero-Emission Vehicle Standards).
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code section 3.04.210 and authorizing the purchase to be made on the grounds of sole/single sourcing; and,
B. Approving the purchase of one Ford E-Transit Cargo Van equipped with Flexitrax C550 System, in the amount of $249,862.65 from WECO Industries for the Sewer Division; and,
C. Authorizing the City Manager to execute any necessary documents for the purchase specified above; and,
D. Authorizing the issuance of the Purchase Order and approval of change orders not to exceed 10% of the total purchase price.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Municipal Code Section 3.04.210 - Exemptions from competitive bidding.
California Code of Regulation Section 1962 - Zero-Emission Vehicle (ZEV) Standards.
CITY COUNCIL PRIORITIES
As provided for in the FY 24/25 Adopted Budget.
DISCUSSION
Buying the vehicle directly through this sole/single source purchasing requires waiving the City’s competitive bid requirements. In addition to cost savings, purchasing directly from WECO Industries allows the City to qualify for California’s EV incentives of $15,000 and standardize equipment, which is a desire of the Fleet Services Division. With standardized equipment, Fleet Services will have the ability to reduce parts inventory, and ensure the vehicle controls, handling, and maneuvering are the same for vehicles that are currently being used by City employees. The vehicle requested will be the same make and model as other City equipment.
The Public Works Department, Fleet Services Division, is requesting Council authorize the purchase of one currently budgeted fleet vehicle for the Sewer Division on the grounds of sole/single source purchasing from WECO Industries. This vehicle will assist the Sewer Division in their everyday operations and allow the City of Merced to be in compliance with California Code of Regulation Section 1962 (Zero-Emission Vehicle Standards). Additionally, the California Air Resources Board (CARB), ZEV Milestones Option, starting January 1, 2025, fleet owners must meet or exceed the ZEV Fleet Milestone percentage requirements. Milestone Group 1, includes vans, box trucks, buses with two axles, yard tractors, light-duty package delivery vehicles. The table below shows a snap shot of the Milestone layout that the City will need to be compliant to.
Table A: ZEV Fleet Milestones by Milestone Group and Year
|
|
Percentage of vehicles that must be ZEVs |
10% |
25% |
50% |
75% |
100% |
|
Milestone Group 1: Box trucks, vans, buses with two axles, yard tractors, light-duty package delivery vehicles |
2025 |
2028 |
2031 |
2033 |
2035 and beyond |
|
Milestone Group 2: Work trucks, day cab tractors, pickup trucks, buses with three axles |
2027 |
2030 |
2033 |
2036 |
2039 and beyond |
|
Milestone Group 3: Sleeper cab tractors and specialty vehicles |
2030 |
2033 |
2036 |
2039 |
2042 and beyond |
The following is the breakdown of cost for the sewer inspection CCTV van;
E-Transit Cargo Van (After applying $15,000 incentive): $44,252.00
Equipment (Hardware, Software & Interior Buildout): $186,568.00
Total: $230,820.00 + $19,042.65 (8.25% Sales Tax), Grand Total: $249,862.65
The listed vehicle to be purchased is budgeted in the FY 24/25 adopted budget as an additional vehicle. The vehicle requested for purchase in this report will meet the California Code of Regulation Section 1962.
Staff requests waiving the bidding requirements and authorizing the purchase to be made on the grounds of sole/single sourcing.
IMPACT ON CITY RESOURCES
The vehicle was approved in FY24-25 adopted budget in Vehicle Replacement Fund Tracking #VR256065; the budget includes $185,000 as a transfer-in from the Wastewater Enterprise Fund. The additional funding of $89,848.92 will come from Fund 6000 - Wastewater Enterprise Fund (Sewer), which includes a 10% contingency for total amount not to exceed $274,848.92 for the purchase of the electric cargo van.
ATTACHMENT
1. WECO Industries Quote
2. Sole/Single Source Approval
3. E-mail Stating EV Incentives
4. WECO Sole Source Justification