Title
Staff Report for Resolution Approving a Non-Professional Services Agreement with Priority 1 Public Safety Equipment and a Sole Source Procurement to Match Equipment in Use on Existing Police Vehicles and 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 June 30, 2019.
BACKGROUND
Council Resolution No. 2015-075 authorized the outfitting of police vehicles and Resolution No. 2015-173 authorized Priority 1 to be the sole source outfit, service, and maintenance provider to the San Leandro Police Department (SLPD) Fleet Program through FY 2016-17.
Analysis
Priority 1 will be responsible for servicing all vehicles in the Police Department’s fleet. “Service” means all administrative work associated with the coordination of service providers for outfitting vehicles, recordkeeping, and any other administrative needs related to the fleet program. The service fee shall not exceed $120,000 per fiscal year. The service rate is $200 per patrol vehicle per month and $100 per vehicle per month for unmarked vehicles. Any remaining balance will be carried forward each year to sustain the police fleet program. A sole source procurement is justified under California Public Contract Code section 3400, so that the new equipment will match and be compatible with existing equipment in use on other City police vehicle assets.
Priority 1 will also be responsible for the regular maintenance of all police fleet vehicles. “Maintenance” means all upkeep of the fleet, mechanical inspections, warranty work, tire repair, oil changes, and any other maintenance required to maintain the Police Department’s fleet. Maintenance of the fleet will be conducted with as many local businesses as possible. This same maintenance agreement shall not exceed $123,600 each fiscal year, with any remaining balance carried forward each year to sustain the police fleet program.
Priority 1 will be responsible for outfitting all vehicles to the Police Department’s exact specifications. “Outfitting” means procuring all materials and equipment needed to meet state vehicle code requirements for emergency vehicle operation, including lights and sirens, prisoner transport cages, and vehicle push-bars. Outfitting could also include any miscellaneous parts needed to improve the useful life of the vehicle or officer visibility, like protective exterior coatings or decals on the hood of the vehicle. Any additional technology, hardware, or equipment that the fleet manager deems necessary for public safety may be considered “outfitting.”
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 reduce costs long-term.
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)
• City Council adopted Resolution No. 2015-173 (October 5, 2015)
Fiscal Impact
Each year, the Police Department (PD) funds a portion of the Public Works garage’s Overhead and Maintenance (O&M) charges to maintain any vehicles not currently serviced through the PD Fleet Program and Priority 1. O&M costs are covered by Internal Service Fund (ISF) transfers captured in the 21-8311 object code within the PD’s budget. In Fiscal Year 2014, right before the PD Fleet Program with Priority 1 began, O&M costs were $458,172 each year for 62 cars being serviced. By comparison, Priority 1 will service 68 cars by the end of Fiscal Year 2019 with a not to exceed value of $264,600 each year, which would generate a savings of approximately $193,600 per year. The $193,600 does not include any additional long-term cost-savings associated with staffing adjustments.
This service agreement would require no new funding. Funding would come from appropriations proposed in the Fiscal Year 2017-18 and 2018-19 budget to Council. 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
Annual funding for this $243,600 program exists in the appropriations approved by the City Council for 2017-18 and 2018-19 and would be budgeted in account # 690-16-003.
PREPARED BY: Scott Koll, Police Business Manager, Finance Department