Item Coversheet

Village Board
2/21/2023

Item: Electric Vans Purchase for Public Works - Contract Award and Budget Amendment Ordinance
Department: Public Works
 

The approved 2023 Capital Plan includes $93,000 for replacing three work vans in the Public Works Department. The scheduled replacement vans are for Building Maintenance and Water Production Units and are used daily to carry our core services.  
 
The current vans have undergone a thorough condition assessment performed by the Department's Fleet Technicians, and replacement has been recommended due to the high maintenance costs incurred over the years for two of those three vans. The Water Production van has not reached end of life status and will be deferred, but the two Building Maintenance vans have. However, while replacement is recommended, two factors continue to challenge the Village's ability to purchase new vans: availability and price. 
 
No ordering banks are available to the Village to purchase a gasoline van with Ford this year. Even if Ford makes an ordering bank available this year, there is no confidence that the vehicle will be manufactured. For example, in February 2022, Ford opened an ordering bank for 2022 Ford Transit Full-Sized gasoline vans. The Village was able to reserve one and created the associated Purchase Order to secure the order. However, just this month, Ford informed staff that the 2022 model would no longer be produced and canceled the order after nearly 12 months of waiting for the new vehicle. 
  

Sourcewell, a cooperative purchasing group that the Village belongs to, has priced the 2023 Ford E-Transit van at $56,190, which is $8,655 more than the gasoline version. Coincidentally, local dealerships under the Sourcewell contract have these vehicles available for purchase and delivery this year, so long as they are ordered by March 1, 2023.  
 
This availability of the Ford E-Transit is also quite fortuitous for Public Works. Most of the Public Works’ fleet, like plow trucks or vactors, will likely not see electric counterparts developed in the near future; however, these work vans present an opportunity to sensibly upgrade an essential vehicle to a green vehicle and affirm the Department's commitment to accomplishing Village Board goals whenever possible. Therefore, staff recommends the following actions:

 

  • Cancel the purchase order created in February 2022 for the Ford Transit Full-Sized gasoline van, unencumbering $28,527 in the Fleet Fund.

 

  • Amend the 2023 Budget Fleet Fund for the amount of $28,500 from fund reserves. $19,000 in the Public Works Fleet Vehicle Equipment, account number 621-9003-550050 (VH9501-VEHICLES) and $9,500 in the Public Works Fleet Vehicle Equipment, account number 621-9003-550050 (VH9502-VEHICLES) to subsidize the purchase of the three electric work vans.

 

  • Transfer $21,000 from Public Works Fleet Fund Contingency 621-7501-540960, $14,000 to Public Works Fleet Vehicle Equipment, account number 621-9003-550050 (VH9501-VEHICLES) and $7,000 to Public Works Fleet Vehicle Equipment, account number 621-9003-550050 (VH9502-VEHICLES) to subsidize the purchase of the three electric work vans.

 

  • Amend the 2023 Budget Capital Projects Fund in the amount of $26,100 in the Capital Projects Fund Sustainability Projects account 401-7101-550600 (EQ2203-EQUIP-OPSPW-CPF) to subsidize the price increase for the upgrade from gas to electric works vans.

 

  • Approve the purchase of three 2023 Ford E-Transit Cargo Vans from National Auto Fleet Group, which was competitively bid under the Sourcewell Cooperative Purchasing Program for a total purchase price of $168,570. This purchase includes the replacement Water Meter van from 2022 and two replacement vans for Building Maintenance planned for 2023.  

 

RECOMMENDATION

 

It is recommended that the Village Board approve the purchase of three 2023 Ford E-transit Vans from National Auto Fleet Group of Watsonville, California, for a total price of $168,570 and approve the attached Ordinance amending the 2023 Fleet Budget and authorize Staff to execute the necessary documents.

 

ATTACHMENTS:
DescriptionType
Ordinance BA03 - Fleet Vehicles (002)Ordinance