Title
Staff Report To Recommend Approval For A Non-Professional Services Agreement And That It Should Be A Sole Source Procurement To Match Equipment Already In Use On Existing Police Vehicles To Provide Vehicle Maintenance Management And Service For The Duration Of This Program.
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council approve a sole source procurement, which is justified to match vehicle equipment currently in use on existing vehicles, and authorize the City Manager to execute a non-professional services agreement with Priority 1 Public Safety Equipment Installation, Inc., to outfit, service and maintain any new and replacement police vehicles through 2016-17.
BACKGROUND
Council Resolution No. 2015-075 authorized the outfitting of police vehicles, but it did not expressly state the vendor or any terms associated with that service. This staff report clarifies the lease program terms by identifying a sole source vendor - Priority 1 Public Safety Equipment Installation (Priority 1). The City utilized Priority 1 services in the past and the proposed agreement satisfies the sole source vendor requirements, as further outlined in the related resolution.
Analysis
Priority 1 will be responsible for outfitting all vehicles to the Police Department’s exact specifications for compensation not to exceed $120,000 in FY 2015-16. “Service” means all administrative work associated with the coordination of services for outfitting vehicles, bid preparation, purchasing of vehicles through our selected financing agent, and any other administrative needs related to this lease program. The same service fee will not exceed $120,000 for FY 2016-17. The service rate is $200 per patrol vehicle per month and $100 per vehicle per month for unmarked vehicles. Priority 1 will also be responsible for the regular maintenance of each leased vehicle, which includes all routine and unplanned maintenance, at a total cost not to exceed $120,000 for FY15-16. “Maintenance” means all upkeep of the fleet, warranty work, tire repair, oil changes, and any other maintenance required to maintain the Police Department’s fleet through the lease program. Maintenance of the fleet will be conducted with as many local businesses as possible. This same maintenance agreement will be for a not to exceed amount of $123,600 for FY16-17, with any remaining balance carried forward each year to sustain the lease program.
The purpose of this proposed police fleet leasing and maintenance program is to update the fleet in a timely manner, replace aging equipment that has been extended beyond its useful life and streamline the purchasing, outfitting and maintenance of police vehicles in an effort to save costs long-term. A full analysis of the lease and maintenance program will be conducted in the third quarter of 2016-17.
Previous Actions
• City Council adopted Resolution No. 2014-046 (May 19, 2014)
• City Council adopted Resolution No. 2014-053 (June 2, 2014)
• City Council adopted Resolution No. 2015-074 (April 6, 2015)
• City Council adopted Resolution No. 2015-075 (April 6, 2015)
Fiscal Impact
This service agreement will require no new funding and will draw all necessary funds from established appropriations for 2015-16 and 2016-17. All funds reside in the Equipment Repair and Maintenance Fund, specifically under Police Vehicle Leasing. Any remaining balance will remain within that account and will be carried forward to sustain the program, per the City Council’s prior resolutions listed above.
Budget Authority
Funding for this $483,600 program exists in the appropriations approved by City Council for 2015-16 and 2016-17 and are budgeted in account # 690-16-003.
PREPARED BY: Scott Koll, Police Business Manager, Police Department