Consideration to Purchase:  Two (2) Utility Service Vehicles (Approve the purchase of two utility service trucks from Babbitt Ford).

The reason for the action is the City's need to replace older utility service trucks with new, more efficient, trucks that will allow the Utilities personnel to adequately arrive to perform maintenance and respond to customer repair calls. This will replace two service vehicles that have surpassed the maximum age and/or mileage limit of 150,000 per the City's fleet policy.

• The Utilities Department has budgeted in the Water Distribution Rolling Stock (201-08-303-1050-0-4401) and Wastewater Collections Rolling Stock (201-08-313-1130-0-4401) in the amount of $ 90,000 ($45,000 each). 


• The Utilities Department would like to purchase two (2) Ford pickups for the amount of $53,703.44 plus applicable sales tax.  Remaining funds will be used to outfit vehicles. 

Repair, replace and maintain infrastructure (Utilities vehicles, facilities infrastructure). Replacement of older vehicle assets is required to perform maintenance duties and deliver services to our customers.

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Option A:  Staff recommends that City Council reject all bids as submitted for Invitation for Bids (IFB) 2014-64, Diesel Service Trucks for Utilities Division.   Accept Purchase Bid 2014-74 from Babbitt Ford in Flagstaff as the lowest responsive and responsible bidder in the amount of $53,703.44 for the two (2) Ford 2015, F-250 pick-ups, 4x4, Fuel: Gas, extended cab, 6.2 L engine. 
 
Option B: Continue to use the existing utility service vehicles and forego the purchase at this time. One impact may be that we run the risk of having the older service trucks incurring high maintenance costs. By accepting this option, the City may experience additional downtime, additional repair costs and vehicles in for repair.

The initial bid invitation, Bid# 2014-64, for two diesel powered service trucks was rejected. The reason for this was because the City changed the specifications from a diesel engine to a gas engine for cost savings.The Fleet Services department recommended rejecting the first bid and obtaining a second bid for regular gas powered service trucks. Per Fleet Services, the gas powered service trucks have a lower initial cost, require less maintenance and have lower fuel costs for the life of the vehicle.
 
Both of these service vehicles are for Utilities Operations and are replacement vehicles. The criterion for replacement of a Utility Service truck is minimum 15 years old and/or 150,000 miles. The two vehicles being replaced have exceeded the age and/or mileage threshold. Below are the vehicles slated for replacement:             

• W2-37 Vehicle is 15 years old and has 129,000 miles and has existing mechanical issues.         
• S4-17 Vehicle is 13 years old and has 165,000 miles.             

All vehicles being presented to the City Council for replacement purchase have been reviewed, evaluated and approved by the Fleet Management Committee, which is comprised of Public works - Fleet staff, Utilities supervisors and maintenance workers. During the review /replacement process, the Utilities Supervisor along with his staff first evaluates the vehicles proposed for replacement. In performing their evaluation they review fiscal year-to-date as well as life to date costs to determine if the vehicle or equipment has had any recent major overhaul or replacement. If the existing vehicles are mechanically sound and the body is in fairly good condition, the vehicle is usually recommended for retention for another year. If the vehicle has incurred a significant number of repairs and is likely to experience major component failures, the vehicle is recommended for replacement by the Utilities Fleet representative and forwarded to the City Fleet Management Committee for their consideration.

The purchases being recommended were all reviewed and approved by the Fleet Committee. With Babbitt Ford being the lowest responsive and responsible bidder, this purchase will support the local economy.

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The replacement of two (2) service trucks will help reduce the amount of downtime, additional repair costs and vehicles in for repair. The replacement will help to ensure a reliable fleet of service trucks, which allows the Utilities Department to effectively provide maintenance and repair services to the citizens of Flagstaff in a safe and timely manner.

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CC Approved 5/20/2014 - Passed 6-0