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 CITY COUNCIL AGENDA ITEM NO. 15


Meeting Date: March 11, 2003

Subject/Title: Authorize the City Manager to purchase three (3) 2003 Compressed Natural Gas Honda Civics for the Building Division, from Pacific Honda of San Diego.

Submitted by: Pamela Ehler, Director of Finance and Information Systems
Louis Kidwell, Chief Building Official
Becky Bridgen, Purchasing Agent

Approved by: John Stevenson, City Manager


RECOMMENDATION
Authorize the City Manager to purchase three (3) 2003 Compressed Natural Gas Honda Civics for the Building Department from Pacific Honda of San Diego for a cost of $66,002.18. (A net expense of $52,502.18 after Bay Area Air Quality Management District incentives.)

PREVIOUS ACTION
A Vehicle Replacement Fund was established in 1999 in order to insure scheduled replacement of vehicles. This process is currently in-place for all City of Brentwood vehicles. 

The City of Brentwood Purchasing Policy was adopted by Council on February 26, 2002, Resolution 2475. 

The 2002/2003 Amended Operating Budget was adopted by Council on June 25, 2002, Resolution 2599.

BACKGROUND
In the 2002/2003 Operating Budget, the Vehicle Replacement Fund for the Building Division has two (2) 1995 Ford Escorts are scheduled for replacement at funds not to exceed $43,200. Also budgeted in the 2002/2003 Equipment Budget for the Building Division, $22,000 was budgeted to purchase an additional inspector vehicle.

Community Development currently has five (5) Honda Civic Compressed Natural Gas and one (1) Toyota Prius bi-fuel (electric/gas) vehicles in addition to three (3) gas fueled vehicles. Two (2) of the gas fueled vehicles are the 1995 escorts that would be replaced by this request. The alternative fuels vehicles work very well for the Building Division inspectors and code enforcement officers who stay within the city limits and make frequent stops. The department has its own fueling station, which will provide adequate re-fueling capacity for the additional compressed natural gas vehicles.

Purchasing the Honda Civics will help to maintain fleet consistency, minimize our parts inventory and the Bay Area Air Quality Management District offers subsidies for the true compressed natural gas Honda. 

Based on Public Contract Code 10298, local agencies are allowed to participate in State procurements including agreements for goods, information technology and services. In that regard, the State of California Contract #1-03-23-22, with Pacific Honda of San Diego, offers the 2003 Honda Civic Compressed Natural Gas vehicles for $22,000.73 each. 

The Bay Area Air Quality Management District has reserved VIP incentives for clean air vehicles for public agencies of $4,500 each vehicle. This incentive will result in a net cost of $17,500.73 per vehicle.

Staff considered holding this item until the Purchasing Policy on the Replacement of All City Vehicles is approved by City Council. However, we are receiving an incentive that is time-sensitive ($4,500/car) that precludes waiting for the Council policy. Staff, therefore, recommends approval of this item.

The purchase of the Honda’s and the subsequent disposal of the replaced vehicles is in compliance with the Purchasing Policy adopted on February 26, 2002, Resolution No. 2475.

FISCAL IMPACT
The 2002/2003 Vehicle Replacement Fund budgeted $43,200 for two (2) vehicles. The 2002/2003 Building Division budgeted $22,000 for the purchase of one (1) vehicle. The net expense to the vehicle replacement fund will be $35,001.46. The net expense to the Building Division equipment budget will be $17,500.72.

The incentive will go back into the Vehicle Replacement Fund and will offset the Building Division equipment budget (General Fund).


RESOLUTION NO. _____

RESOLUTION AUTHORIZING THE CITY OF BRENTWOOD TO 
PURCHASE THREE (3) 2003 COMPRESSED NATURAL GAS HONDA CIVICS FOR THE BUILDING DEPARTMENT FROM PACIFIC HONDA OF SAN DIEGO.

WHEREAS, in the 2002/2003 budget for replacement vehicles, $43,200 was budgeted and in the 2002/2003 Building Division adopted Equipment $22,000 was budgeted.

WHEREAS, based on Public Contract Code 10298, local agencies are allowed to participate in State procurements including agreements for goods, information technology and services. In that regard, the State of California Contract #1-03-23-22, with Pacific Honda of San Diego, offers the 2003 Honda Civic Compressed Natural Gas vehicles for $22,000.73 each

WHEREAS, Bay Area Air Quality Management District offers subsidies public agencies for purchasing alternative fuels vehicles.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brentwood, that the City will purchase three (3) 2003 Compressed Natural Gas Honda Civics for the Building Department from Pacific Honda of San Diego.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 11th day of March, 2003 by the following vote:

AYES:
NOES:
ABSTAIN:
ABSENT:

__________________________
Brian Swisher
Mayor


ATTEST:



_____________________
Karen Diaz, CMC
City Clerk

City Administration
City of Brentwood City Council
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Brentwood, CA 94513
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