Title
Staff Report for a City of San Leandro City Council Resolution Authorizing the City Manager to Execute Purchase Agreement(s) for the Purchase and Outfitting of Eight Police Vehicles, Two of which will be Hybrid vehicles, in an Amount not to Exceed $513,822.19
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council approve a resolution authorizing the purchase of eight Police Vehicles. The competitive bid process for these eight vehicles was completed and offered to local dealerships as well as dealerships outside the County. Staff received two bids for each vehicle make. One bid from Elk Grove Auto Group for the purchase of three Dodge Chargers, and one bid from San Leandro Ford for the purchase of five Ford Interceptors, two of those five Fords are Hybrid Vehicles. The total amount of the purchase for all eight vehicles, including delivery, tax, but not including outfitting will not exceed $364,820.75.
The outfitting of the new vehicles will be completed by Priority One, which is already under contract for fleet maintenance and outfitting. Priority One will purchase and install all necessary equipment to make them a “patrol ready” vehicle. This will include the installation and purchase of wire harnesses, push bars, LED lights for emergency driving, light bars, sirens, etc. To lower costs and reduce unnecessary environmental waste, Priority One will reuse salvageable equipment from vehicles that were taken out of service. Priority One provided a written estimate of $149,001.44 to purchase and outfit the equipment for the eight new vehicles.
The estimate from Priority One is attached to this Staff Report.
The resolution authorizes the City Manager to execute the purchase agreement and other documents necessary to finance the acquisition.
BACKGROUND
The Police Department did not purchase any vehicles in Fiscal Year 2020-2021 during the scheduled replacement cycle. Funds were budgeted to replace vehicles through their normal replacement cycle; however those funds were reallocated. Therefore, no vehicles were purchased, causing excessive mileage and costly repairs to the current fleet.
Due to the high mileage on current vehicles, maintenance and repair costs have significantly increased. For comparison, in 2019 when many of the vehicles still had the five year/100,000 mile extended warranty, a total of $93,854 was spent in repairs for all fleet vehicles.
In 2020, $145,926 was spent on repairs, a $52,000 (55%) increase. If the City continues to defer the purchase of patrol vehicles, costs will increase. Additionally, the safety of officers driving vehicles with high mileage is a concern as these vehicles are sometimes driven at high speeds getting to a call for service to protect the community.
The department currently has twenty-nine marked patrol cars in service including four K-9 Units; ten of those cars have over 80,000 miles. Excessive mileage was placed on current vehicles in the fleet. As a result, eleven vehicles, (nine patrol vehicles and two CID vehicles) are no longer in serviceable condition and were taken out of service. These vehicles were retired due to high mileage and some were involved in traffic accidents. This resulted in totaling the vehicles because the cost to repair would exceed their value.
Staff will replace eight of the nine marked patrol vehicles that were taken out of service. If enough money exists in the budget, three more vehicles will be purchased this fiscal year. This will allow officers to drive newer vehicles, and reduce the miles on high mileage vehicles until they are taken out of service.
Analysis
Purchasing these vehicles will continue to improve current vehicles’ conditions, which have deteriorated over time due to an extended, and inconsistent replacement cycle.
The proposal for the replacement of eight patrol vehicles is attached to the staff report, as well as outfitting costs associated for a “patrol ready” vehicle. The competitive bid process for these eight vehicles was completed and will not exceed $364,820.75 for the purchases of the eight vehicles. Three Dodge Chargers will be purchased at Elk Grove Auto Group and staff will purchase three Ford Interceptor’s and two Hybrid Ford Interceptors at San Leandro Ford.
Once the vehicles are purchased and received, staff expects to pay Priority One approximately $149,001.44 to outfit all eight vehicles.
Fiscal Impacts
This project will cost $513,822.19, which requires no adjustment to the FY2021-2022 Adopted Budget. This amount includes the inspection, delivery, sales tax, equipment purchasing, and installation of all necessary equipment. There will be no off-setting revenues for this project.
Budget Authority
This project does not require Council appropriation given sufficient funding exists in the current Fiscal Year 2021-2022 Adopted Budget. Staff requests Council authorization to execute all contracts and payments to Elk Grove Auto Group, San Leandro Ford, and Priority 1 Public Safety Equipment and Installation to acquire and outfit the vehicles awarded under this competitive bid process.
PREPARED BY: Brian Anthony, Police Lieutenant
ATTACHMENT
• Bid sheets from Elk Grove auto Group, and San Leandro Ford.
• Cost Estimate for the purchase and installation of the necessary equipment by Priority 1.