Title
Staff Report for a City of San Leandro City Council Resolution to Approve a Non-Professional Services Agreement between the City of San Leandro and Priority 1 Public Safety Equipment Not to Exceed $637,200 for Two Fiscal Years; to Authorize the City Manager to Negotiate and Approve Change Orders Up to a Cumulative Value of 5% of the Original Contract Amount; and to Award a Sole Source Procurement to Match Equipment in Use on Existing Police Vehicles and to Provide Vehicle Maintenance Management, Collision Repair, and Service for the Duration of this Program
Staffreport
SUMMARY AND RECOMMENDATIONS
This contract provides the services necessary to outfit, repair, and maintain the Police Department Fleet through Fiscal Year 2020-21.
Staff recommends the City Council authorize the City Manager to negotiate and approve change orders up to a cumulative value not to exceed 5%, or $31,860, of the original contract amount.
Staff recommends that the City Council approve a sole source procurement California Public Contract Code section 3400, 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, 2021.
BACKGROUND
Council Resolution No. 2015-075 authorized the outfitting of police vehicles and Resolution No. 2017-104 authorized Priority 1 to be the sole source outfit, service, and maintenance provider to the San Leandro Police Department (SLPD) Fleet Program through Fiscal Year 2018-19.
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 has agreed to provide the Police Department with an additional service by managing all collision repairs. Priority 1 will not charge any additional fees for providing this service and will instead “pass through” any collision repair costs directly to the City, not to exceed $75,000 annually. Priority 1 will coordinate repairs with local automobile repair shops in San Leandro.
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)
• City Council adopted Resolution No. 2017-104 (July 17, 2017)
Fiscal Impact
This service agreement would require no additional appropriations. Funding would come from appropriations proposed in Fiscal Year 2019-20 and 2020-21 budgets as presented to Council for approval. All funds reside in the Equipment Repair and Maintenance Fund, specifically under Police Vehicle Leasing (690-16-003). 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
The total contract will not exceed $637,200 through June 30, 2021. Annual funding of $318,600 for the Police Fleet program exists in the appropriations presented to Council for approval in Fiscal Years 2019-20 and 2020-21 and would be budgeted in account No. 690-16-003.
ATTACHMENT(S)
Attachment(s) to Staff Report
• 2019 0503 - FY2020-21 Priority 1 Non-Professional Services Agreement draft
Attachment(s) to Related Legislative File
• 2019 0503 - FY2020-21 Priority 1 Non-Professional Services Agreement draft
PREPARED BY: Scott Koll, Business Manager, Finance Department