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<br />'Re. .p. OR. r <br />. .. <br />. '. . , "'.-. '.'- '. .-.;. <br />.".-. ." '" " .. <br />... ........................ .... .< <../ . <br /> <br /> <br />6.1C <br />Page 1 <br /> <br /> <br />. ....()theHon()rabl~MayorancJCityC()uncil <br />... .. .... . ... . . .Ft()rJl1:h~CityMaflager <br /> <br /> <br />April 23, 2007 <br /> <br />Subject <br />Purchase of Two (2) Ford F-750 Dump Trucks <br /> <br />Recommendation <br />By Motion, approve the purchase of two F-750 Dump Trucks from East Bay Ford of <br />Oakland, CA in the amount of $181,679.12. <br /> <br />Background <br />The Public Works Services Department's Sanitary Sewer Maintenance and Streets & <br />Parking Lots Maintenance Sections developed vehicle specifications for the scheduled <br />replacement of two dump trucks. The primary uses of these trucks are for the transporting <br />of spoils, asphalt, permeable and base rock, as well as hauling equipment trailers to <br />transport backhoes and other equipment to job sights. <br /> <br />The City Clerk advertised the bid invitation with copies of the bid being mailed to six local <br />dealerships. The two bids received were opened by the City Clerk on Wednesday, March <br />14, 2007, which are summarized as follows: <br /> <br />Serramonte Ford <br /> <br />Calma, CA <br />Oakland, CA <br /> <br />$181,465.97 (Incomplete Bid) <br /> <br />East Bay Truck Center <br /> <br />$181,679.12 <br /> <br />Serramonte Ford did not include the cost of a 60 month extended warranty as required in <br />the bid specifications, which is valued at approximately $2,800. Therefore, East Bay Ford is <br />the lowest responsible bidder who has proven in the past to be experienced and reliable. <br /> <br />Alternative <br />Not approving the purchase of the two dump trucks would impact the operational <br />requirements of the Sanitary Sewer Maintenance and Streets & Parking lots Maintenance <br />Sections. Their existing dump trucks are extremely worn from heavy daily use. It would not <br />be economically sound to invest in the continued repair of these dump trucks due to their <br />current age and condition. These trucks, if not replaced, would be subject to the 2007 <br />diesel emission requirements as mandated by the California Air Resource Board (CARB) <br />and would be required to be retrofitted at a cost of $30,000. <br /> <br />Fiscal Impact <br />Funds for the purchase of these replacement dump trucks were approved by City Council <br />in the FY 2006/07 Equipment Replacement Fund Budget in the amount of $157,750. The <br />remaining balance of $23,929.12, will initially be financed from retained earnings in the <br />Equipment Replacement Fund. This amount will be subsequently recovered from the <br />operating budget of the user department through the vehicle replacement charges in future <br />years. The two main reasons for the price difference between what was budgeted <br />