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HomeMy WebLinkAboutItem 3d - Purchase of 2013 all-electric aerial lift truck�� � GPLIFOR�y�9'Y,d f' m.orno. Ica `424niq°fvl°0 cy STAFF REPORT Public Works Services Department DATE: October 1, 2013 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Dave McVey, General Services Superintendent Carmen Masud, Management Analyst SUBJECT: AUTHORIZE AND DIRECT THE CITY MANAGER TO APPROVE THE PURCHASE OF A 2013 ALL - ELECTRIC AERIAL LIFT TRUCK FROM ZEROTRUCK CORPORATION IN THE AMOUNT OF $65,907 AND APPROPRIATE AN ADDITIONAL $20,000 OF AQMD GRANT FUNDS TO BE INCLUDED IN THE BUDGET Recommendation: Approve SUMMARY The Fiscal Year 2013 -14 Equipment Acquisition Program includes the purchase of an aerial lift truck for the Public Works Services Department. The purchase of this vehicle is a sole source from ZeroTruck Corporation. ZeroTruck Corporation has received grant funding from the California Energy Commission to be used as a subsidy for the sale of "Advanced Medium - and - Heavy -Duty Vehicle Technologies Pre - Commercial Demonstrations" under the Alternative and Renewable Fuel and Vehicle Technology Program. It is recommended that the City Council authorize and direct the City Manager to approve the purchase of a 2013 all- electric aerial lift truck from ZeroTruck Corporation in the amount of $65,907 and appropriate an additional $20,000 of AQMD Grant funds to be included in the budget. DISCUSSION The Public Works Services Department's Street Lighting /Traffic Signal Technicians currently share a single aerial lift truck to perform the daily maintenance and repairs of street lights and traffic signals. The aerial lift truck is used for a multitude of tasks ranging from replacing traffic signal LED lamps, adjusting CCTV cameras, replacing intersection lighting, lifting personnel to buildings for roof repairs and equipment installations, and installing City banners and flags. Over the years, scheduling the lift truck to accommodate various service requests for both street lighting and traffic signals has been difficult, and has in some cases delayed permanent repairs due to the availability of the aerial lift truck. Purchasing an additional aerial lift truck would alleviate the scheduling conflicts and allow the Signal Maintenance Technician and Street All- Electric Aerial Lift Truck October 1, 2013 Page 2 of 3 Lighting Technician to schedule their maintenance and repairs in a timely manner without interruption. When completing the Fiscal Year 2013 -14 Equipment Acquisition Program, staff initially budgeted for a 2010 used diesel aerial lift truck with 50,000 miles. Funds were budgeted in the amount of $80,000. Since the budget was adopted, City staff was notified about a heavy duty vehicle grant program through the California Energy Commission (CEC). The Alternative and Renewable Fuel and Vehicle Program partnered with ZeroTruck Corporation to offer subsidies to agencies for the purchase of medium and heavy duty vehicles. The purchase of this truck is only available through ZeroTruck Corporation. The purchase of the all- electric aerial lift truck is a sole source purchase since the City could not purchase this truck from any other vendor for this cost. The total cost of the all- electric aerial lift truck would be $246,690. Grant funding from the CEC to ZeroTruck Corporation significantly reduces the cost of the truck to the City. The CEC grant subsidizes 70% of the retail cost, leaving the City of Arcadia to pay the remaining 30 %. While the original budget included only Equipment Replacement Funds, by purchasing an all- electric vehicle, the City can utilize a portion of the City's annual AQMD grant funding. The cost breakdown is as follows: Cost of 2013 All-Electric Aerial Lift Truck $ 246,690 Grants California Energy Commission $ 172,683 AQMD Grant Funding $ 20,000 Total Grant Funding $ 192,683 City Cost after grant incentives (includes tax and destination fees) $ 65,907 The terms and conditions of the CEC Grant require the City to purchase an all- electric aerial lift truck from a CEC certified vendor. ZeroTruck is the only certified CEC vendor that is qualified to build and sell an all- electric aerial lift truck. The City of Santa Monica has taken advantage of the CEC's Grant Program and purchased two all- electric aerial lift trucks from ZeroTruck with very good results. All-electric vehicles have less range than gas or diesel powered vehicles. However, the nature and proposed use of the all- electric aerial lift truck will be to travel short distances. For example, the truck will be mostly used to maintain and repair traffic signals. This would mean that the truck would be used at one or two signalized intersections performing routine maintenance or repairs each day. The all- electric powered aerial lift truck will reduce the City's overall dependence on gas or diesel fuel and emit less greenhouse gases. The Public Works Services Department will be All- Electric Aerial Lift Truck October 1, 2013 Page 3 of 3 installing a 220 volt outlet at the Service Center for the all- electric aerial lift truck to plug into to be recharged. According to the manufacturer's specifications, the all- electric aerial lift truck can travel 50 miles before it will have to be recharged. The all- electric aerial lift truck's battery life expectancy is 15 years and will cost approximately $18,000 to replace. Fuel, oil, and other costs related to combustion engines over the same period would far exceed this amount. This is the first all- electric heavy duty vehicle purchase for the City of Arcadia. This could be a platform to build on in the future in accomplishing an alternative fueled fleet comprised of CNG, gas electric hybrid, and all electric vehicles. FISCAL IMPACT The total cost to the City for the new all- electric aerial lift truck is $74,007. The CEC grant subsidizes 70% of the retail cost and is paid by CEC directly to the vendor. Annual AQMD grant funds can be applied towards the purchase of a new all- electric lift truck leaving the City to pay a total of $65,907. Funds in the amount of $80,000 have been budgeted for the purchase of an aerial lift truck. Therefore, there will be an overall savings of $14,093 in the Equipment Replacement Fund by purchasing a new all - electric vehicle versus the used diesel powered truck that was contemplated in the adopted budget. RECOMMENDATION It is recommended that the City Council authorize and direct the City Manager to approve the purchase of a 2013 all- electric aerial lift truck from Zerotruck Corporation in the amount of $65,907 and appropriate an additional $20,000 of AQMD Grant Funds to be included in the budget. Approved- Dominic LazzareW City Manager