PREPARED BY: JILL MERCURIO DATE OF MEETING: 09/07/21
SUBJECT:
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO (1) AUTHORIZING THE CITY MANAGER TO PURCHASE ONE (1) 2021 FORD F-650 CHASSIS, ELECTRIC BATTERY-POWERED GARBAGE TRUCK FROM ELECTRIC VEHICLE CONVERSIONS IN SANTA FE SPRINGS, CA; (2) WAIVING THE COMPETITIVE BIDDING REQUIREMENTS FOR THE PURCHASE PURSUANT TO THE SAN PABLO MUNICIPAL CODE SECTION 3.16.110; (3) RATIFYING THE APPLICATION FOR FUNDING THROUGH CALIFORNIA’S HYBRID AND ZERO-EMISSION TRUCK AND BUS VOUCHER INCENTIVE PROJECT; AND (4) APPROPRIATING $220,000 FROM THE GENERAL FUND DESIGNATED RESERVES TO THE VEHICLE REPLACEMENT FUND TO EXECUTE PUBLIC WORKS VEHICLE PURCHASES IN FY 2021/22
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
Enhance Community Resilience: Priority 202 Develop and Implement Long-Term Environmental Stewardship Goals and Improve Public Safety: Priority 506 Keep San Pablo Clean Litter and Illegal Dumping Initiative are adopted policy items under City of San Pablo City Council Priority Work Plan FY 2021-23, effective March 15, 2021 through Resolution 2021-026.
CEQA Compliance Statement
This proposed action is not a project under CEQA pursuant to the exemption for maintenance activities. .
BACKGROUND
The City is responsible for emptying city-owned trash cans in public areas throughout the City. Currently staff uses a 2004 Ford F-450 garbage truck to empty all of the city trash cans twice each week. The vehicle is well past its useful life and needs replacement.
As part of the City’s ongoing effort to provide good environmental stewardship within the community, each time a vehicle or major equipment needs to be replaced, staff assesses the possibility of replacement with a lower emission unit. A new Class 6, rear-loading trash truck costs approximately $150,000 - $200,000. Similar vehicles powered by an electric battery were found in the $270,000 - $335,000 range.
In order to make the most cost-effective purchase possible for the electric garbage truck, the Public Works Department has pursued grant funding and rebate options to lower the vehicle cost. The preferred funding source is the Hybrid and Zero Emission Vehicle Incentive Program (HVIP) <https://californiahvip.org/> administered by the California Air Resources Board (CARB). This voucher program provides State funding directly to the participating equipment dealership to apply to the purchase price resulting in a lower overall cost to the buyer. Wave 2 of the Year 11 HVIP Cycle closed on August 10, 2021, with an advance priority deadline for public agencies on August 6, 2021. Public Works Department staff submitted application materials for HVIP voucher on August 5, 2021, and are seeking Council ratification of the HVIP application as part of this Council item.
The HVIP program requires a purchase from a list of certified dealers and vehicles, and provides a rebate of $85,000 for this type of electric truck. As such, the Public Works Department did not go out to bid for an electric garbage truck, but sought quotes from approved dealers that make electric garbage trucks in the specific size that the Maintenance Division needs (Class 6 chassis, 10-yard trash body).
Staff have confirmed that the City was successful in qualifying for the $85,000 voucher, plus a 10% voucher upgrade because San Pablo is identified as a disadvantaged community - as defined by Senate Bill 535 (De León, Statutes of 2012) - for a total voucher value of $93,500.
The Public Works Department recommends purchase of the attached quoted electric garbage truck (Ford F-650 chassis, SEA electric power drive and EV Conversions garbage unit) from Electrical Vehicle Conversions (EVC) in Santa Fe Springs, CA, which was the lower of the two quotes received from participating dealers. EVC agreed to the terms of the City’s standard contract.
This vehicle purchase is a hybrid “sole source” agreement, “cooperative purchasing” agreement (through the limited number of vendors established by CARB), and “specialized services combined with equipment and/or products” exception to the competitive bidding requirements pursuant to the San Pablo Municipal Code 3.16.110.
The total cost of the new equipment - including electric vehicle supply equipment (EVSE) appropriate to charge this type of medium-duty maintenance vehicle, including installation costs at the City Corporation Yard - is shown below:
|
Vehicle |
|
|
|
2021 Ford F-650 cab/chassis |
$74,475 |
|
|
SEA Drive: 120B power system with installation |
$132,845 |
|
|
EVC rear compactor 10-yard trash body |
$70,000 |
|
|
|
$277,320 |
|
|
|
|
|
|
tax title, and fees |
$27,885 |
|
|
|
$305,205 |
|
|
|
|
|
|
CA HVIP 2021 zero emissions truck voucher: class 6/7 |
-$85,000 |
|
|
Disadvantage Community +10% |
-$8,500 |
|
|
Total |
$211,705 |
|
|
|
|
|
Outfitting (lights, backup camera, wrap, etc.) |
$10,000 |
|
|
|
|
|
EVSE (Charging station*, including equipment and new transformer) |
|
|
|
*Estimated cost after including outside funding) |
$10,000 |
|
|
|
|
|
|
|
$231,705 |
Staff are pursuing additional outside funding sources to help defray the costs of the new Electric Vehicle Supply Equipment, including the EV Fleet Program from PG&E and MCEv Program from MCE (formerly known as Marin Clean Energy).
Through the EV Fleet Program, PG&E would pay for the “To the Meter” (TTM) costs - which include the power lines and transformer - that are required to install EVSE at the City Corporation Yard. The City would pay for the “Behind the Meter” (BTM) costs - which include the electric panel and any other “make-ready” infrastructure costs required to connect the installed EVSE to the meter. However, PG&E would provide an additional rebate for these BTM costs, based on the number of medium and heavy-duty electric vehicles the City commits to putting in operation by 2024. Finally, PG&E would provide a rebate for the EVSE equipment costs, based on the power of the charging station.
Participation in the EV Fleet Program requires a demonstrated commitment to procure a minimum of two medium or heavy-duty electric vehicles by 2024, sharing of charging data from the newly installed meter, and operations and maintenance of all electric vehicles and chargers for a minimum of 10 years.
Through the MCEv Program, PG&E would provide a rebate for a minimum of two electric vehicle charging ports from a Level 2 charging station. Participation in the MCEv Program requires a metering of all funded EVSE through an MCE account for a minimum of 5 years.
Staff will return to Council to authorize the City Manager to sign any needed agreements with PG&E or MCE once staff have identified the preferred EVSE funding approach.
STANDING COMMITTEE REVIEW
On July 21, 2021, staff presented this procurement request to the Public Safety Standing Committee (Cruz; Xavier). Upon completion of the presentation, the Standing Committee recommended the procurement request be forwarded to the City Council for review and approval. At the time of the presentation to the Standing Committee, Public Works staff had not secured the HVIP vouchers and had assumed that the FY 2021/22 General Fund Designated Reserves allocation would be augmented by funds through the State Water Resources Control Board with an in-lieu payment for a regional stormwater violation by the offenders. These forthcoming revenues will be accepted at a later Council meeting.
FISCAL IMPACT
The total purchase cost of $231,705 will be made using $220,000 from the General Fund Designated Reserves Account (100-0000-00000) to Property Maintenance Vehicle Replacement (100-3410-46300), and $11,705 from Property Maintenance operating budget.