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CC - CONSENT ITEM: Approval of an Increase to a Purchase Order with PB Loader in an Amount Not-to-Exceed $32,000 to Supply One New Roadway Maintenance Truck for the Public Works Department Street Maintenance Division.
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Meeting Date: June 9, 2025
Contact Person/Dept: Allison Cohen/Transportation Department
Phone Number: (310) 253-6543
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/05/2025)
Department Approval: Diana Chang, Chief Transportation Officer (05/22/2025)
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RECOMMENDATION
Staff recommends the City Council approve an increase to a purchase order with PB Loader in an amount not-to-exceed $32,000 to supply one new roadway maintenance truck for the Public Works Department Street Maintenance Division.
BACKGROUND/DISCUSSION
In Fiscal Year 2022-2023, City Vehicle #3308, a 2006 GMC C7500 asphalt patcher truck that has reached the end of its useful life, was approved by City Council for replacement at midyear in the amount of $236,000. Since the City last purchased an asphalt patcher in 2006, roadway maintenance vehicles have seen several notable advancements, including sophisticated computerized systems for precise material loading, mixing, and applications as well as advanced safety features, including automatic monitoring systems, improvements in truck chassis design, and improved environmental performance minimizing material wastage. Additionally, modern trucks are designed to handle multiple functions allowing operators to adapt to various application needs safely and effectively.
Considerations and research for zero-emission alternatives to replace the vehicle have been conducted and staff found that no commercially available electric models could meet the operational needs of the Public Works Department Street Maintenance Division. In working with a variety of manufacturers and commercial dealerships, staff found that the PB Loader BC-3 Asphalt Patcher with 3-cubic-yard capacity, mounted on a Ford F650 chassis with 7.3L gasoline engine would best meet the needs of the Street Maintenance Division and allow for the most flexibility to accommodate future needs. Originally sold by Ford Motor Company as a truck chassis, the truck would be outfitted by PB Loader to meet the unique configuration and operational needs of the City. The total not-to-exceed amount for the purchase of the roadway maintenance truck from PB Loader is $267,760.49.
The recommended amount exceeds the funding included in the Revised Budget for Fiscal Year 2022-2023 by $32,000. During the evaluation process, staff found that the cost of such specialized roadway maintenance equipment had outpaced projected budget expenditures which were based on the average Producer Price Index of Components for Manufacturing over the life of the existing equipment. The increasing cost relative to overall inflation was found to be attributed to several factors including the specialized materials and labor required to assemble these vehicles and the addition of advanced features and upgrades like advanced computerized systems and safety technologies. As such, additional funding is needed to ensure that the City is able to procure equipment that will continue to meet the operational demands of the Department over the truck’s anticipated lifecycle.
Pursuant to Appendment A, Section E of the Adopted Budget, the City Manager may approve appropriation adjustments to vehicle replacement budgets from Fund 307 in amounts not to exceed 5% of the cost of an individual piece of equipment when the actual cost exceeds the budget estimate. In this instance, the cost of the roadway maintenance vehicle exceeds the budget estimate by approximately 13% and exceeds the City Manager’s authority.
FISCAL ANALYSIS
The Revised Budget for Fiscal Year 2022-2023 included funding for the truck purchase in the amount of $236,000 in CIP Project No. PE004 (City Vehicle- Equipment Replacement), which was carried over into Fiscal Year 2024-2025. Project No. PE004 can be found in the Capital Improvements section of the budget in Fund 307 (Equipment Replacement Fund) on page 477 of the Adopted Budget for Fiscal Year 2024-2025. There is sufficient funding available in CIP Project No. PE004 for the additional amount of $32,000because of cost savings on other vehicle purchases.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve an increase to a purchase order with PB Loader in an Amount Not-to-Exceed $32,000; and
2. Authorize the Purchasing Officer to issue such purchase orders on behalf of the City.