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Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract with XL Hybrids, Inc., of Boston, MA, for the conversion of 11 Ford Transit vans and 8 Ford F-150 trucks to gasoline hybrid and plug-in electric units, in an amount not to exceed $304,860. (Citywide)
DISCUSSION
City Council approval is requested to authorize the City Manager, or designee, to execute a contract with XL Hybrids, Inc., for the conversion of vans and trucks used by Public Works and other City departments to gasoline hybrid and plug-in hybrid electric units. These 19 units have been approved in the FY 16 and FY 17 vehicle replacement plans and are fully funded.
XL Hybrids, Inc., is the only vendor certified by the Ford Motor Company to perform these vehicle conversions. Using XL Hybrids would allow Fleet Services to retain the original equipment manufacturer (OEM) warranty packages through Ford’s Qualified Vehicle Modifier (QVM) program. Therefore, no useful purpose would be served by advertising for bids and to do so would constitute an unnecessary expenditure of public funds.
These hybrid pickup trucks and vans are a pilot program for the City to support operational use testing for suitability and actual fuel savings. AB 2766 funding will be used to pay the incremental costs of the hybrid technology installed.
City Charter Section 1801 requires that contracts for City purchases be awarded to the lowest responsible bidder after a competitive bid process, but allows for awards without a competitive bid process if accompanied by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Monica J. Kilaita on June 21, 2017 and by Budget Operations Administrator Grace Yoon on June 23, 2017.
SUSTAINABILITY
This pilot program will increase fuel-efficiency and reduce harmful vehicle exhaust emissions by replacing 19 gasoline-powered vehicles with conventional or plug-in electric hybrids. The hybrid vans will provide a 25 percent increase in miles driven per gallon and a reduction of approximately seven short tons of greenhouse gas emissions over the life of each vehicle. The plug-in hybrid trucks will provide a 50 percent increase in miles driven per gallon and a reduction of approximately 17 short tons of greenhouse gas emissions over the life of each vehicle.
TIMING CONSIDERATIONS
City Council action is requested on July 18, 2017, to ensure the conversions of the Ford Transit vans and Ford F-150 trucks can take place expeditiously.
FISCAL IMPACT
The cost of this contract will not exceed $304,860, and is budgeted in the Fleet Services Fund (IS 386) in the Financial Management Department (FM). Replacement vehicle costs have been collected through charges to user departments in the Fleet monthly billing process and incremental costs of the conversions are funded from AB 2766 revenue that is budgeted in the Transportation Fund (SR 182) in the Public Works Department. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
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Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER