BOARD MEETING DATE: March 7, 2003
AGENDA NO. 11

PROPOSAL: 

Authorize Purchase of Thirty Vehicles for AQMD Fleet and Transfer Savings from Capital Outlays to Salaries and Benefits

SYNOPSIS: 

To reduce the number of high-mileage, high-maintenance-cost vehicles in AQMD's fleet and to promote the use of dedicated CNG vehicles, staff recommends purchasing thirty dedicated CNG sedans. After reviewing specifications of CNG vehicles available through the State of California Multiple Award Schedule and through local dealerships, staff has determined the CNG Honda Civic GX meets AQMD needs in terms of cost, fuel economy, ease of handling, and product availability. The cost of this purchase would not exceed $576,000, and funds are available in the FY 2002-03 Budget.

COMMITTEE: 

Administrative, February 14, 2003, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Procurement Manager to execute all documents for the purchase of thirty dedicated-CNG Honda Civic GX sedans at an amount not to exceed $576,000.
   
   
2. Transfer $234,000 in budget savings from the Capital Outlays Major Object to the Salaries and Employee Benefits Major Object in District General.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AQMD budgets annually for the replacement of high-mileage vehicles that are no longer cost effective to maintain and repair. Last year the Board approved the purchase of 32 dedicated-CNG Ford Crown Victoria sedans to replace sedans used primarily by field staff in compliance and air monitoring. The only CNG sedan choices currently available are the Honda Civic and the Ford Crown Victoria. Purchase of Honda Civics is recommended to provide diversity within the fleet and because of their lower cost, ease of handling, and availability.

Proposal

Price quotes were obtained through the State of California Multiple Award Schedule and from local dealerships, as shown in Attachment A. Staff recommends the Board authorize the Procurement Manager to execute a purchase order with the dealer offering the lowest price quote, Robertson Palmdale Honda, for 30 CNG Honda Civic GX sedans. Prices listed include the $3,000 buy-down incentive offered by the California Energy Commission (CEC).

During budget preparation last year, the price of Ford Crown Victoria’s purchased in 2002 was used to estimate the budgeted amount ($810,000) for this year’s purchase of 30 vehicles. With the decision to purchase Honda Civics and the $3,000 per vehicle incentive offered by the CEC, staff requests that the budget savings of $234,000 be transferred to the Salaries and Benefits Major Object to assist in covering the cost of the Subvention positions unfunded (but filled) in this year’s budget. As part of the FY 2002-03 budget adoption, the Board unfunded 29 of the 32 Subvention positions added in FY 2000-01 in response to a 33% reduction ($2.1 million) in Subvention support. While all of the Subvention positions were filled at the beginning of the year, staff proposed in its budget presentations to eliminate these positions through attrition and use budget savings generated during the year to offset the higher cost in the salary and benefit accounts. To date, the agency has been able to identify approximately half the savings necessary within the salary and benefit accounts. Staff proposes the transfer of $234,000 at this time to further reduce the budget shortfall in the Salaries and Benefits account and will return to the Board at its May meeting identifying further budget savings to offset the remaining shortfall. The recommendation to transfer savings from the purchase of vehicles was brought forward subsequent to the February 14, 2003 Administrative Committee meeting and therefore was not discussed in committee.

Resource Impacts

Sufficient funds for the purchase of 30 vehicles have been included in the FY 2002-03 Budget.

Attachment

A - Vehicle Cost Summary

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