Title
Adopt a Resolution to Approve a Sole Source Procurement and Authorize the City Manager to Execute Purchase Agreement(s) for the Procurement and Outfitting of Ten Police Vehicles, in an Amount not to Exceed $864,774.00
Staffreport
COUNCIL PRIORITY
• Public Safety
SUMMARY
On December 20, 2022, staff received notification that Future Chevrolet located in Sacramento, California unexpectedly had seventy-five available 2023 Police Pursuit Chevrolet Tahoe vehicles. These Chevy Tahoe vehicles were not allocated for a specific agency and would be sold quickly as there currently is a shortage of Police Fleet Patrol Vehicles due to a lack of production, specifically Chevy Tahoe vehicles.
Staff is requesting these vehicles be purchased through a sole source procurement under Cal. Public Contract Code section 3400(c)(3), because this necessary equipment is only available from one source within the timeframe necessary for their timely delivery. The need to purchase the vehicles under a sole source is due to variety of reasons including a limited number of days for ordering.
RECOMMENDATIONS
Staff recommends the City Council approve a resolution that authorizes the sole source procurement of ten Chevy Tahoe Police Vehicles from Future Chevrolet in Sacramento, California for an amount not to exceed $614,740.00 and to approve the vehicle outfitting services and necessary equipment purchase for an amount not to exceed $250,034.00 from Priority 1 Public Safety Equipment Installation Inc.
BACKGROUND
The Police Department did not purchase any vehicles in Fiscal Year (FY) 2021 for the scheduled replacement cycle. Funds were budgeted to replace the vehicles through the normal replacement cycle. Therefore, no vehicles were purchased, causing excessive mileage usage and costly repairs on the current fleet.
Due to the high mileage on the current vehicles, maintenance and repair costs have significantly increased. For a comparison, in FY 2019 when many of the cars still had the five-year/100,000 mile extended warranty, a total of $93,854 dollars in repairs was spent for all PD fleet vehicles.
In FY 2021, $205,089.00 was spent in repairs, a $111,235.00, or 118% increase. The Police Department fell behind as purchases of patrol vehicles was deferred. Staff is trying to recover from the deferred replacement cycle in FY 2022, and when caught up this will significantly lower monthly repair bills from the high mileage vehicles currently in operation.
Additionally, the safety of officers driving vehicles with high mileage is a concern as these vehicles are sometimes driven at high speeds going to a call for service to protect the community.
Analysis
Purchasing these vehicles will continue to improve current vehicles conditions, which have deteriorated over time due to the extended inconsistent replacement cycle. Staff has spent hours analyzing the next ten-year replacement cycle for the Police Department’s fleet to have a clear understanding of costs and replacement cycles. The analysis revealed that the Police Department needs a total of 17 vehicles purchased in FY 2023. With the purchase of the requested ten vehicles staff will only need to purchase seven more vehicles to align with the normal replacement cycle of the Police fleet.
The written estimate from Future Chevrolet is attached to this Staff Report, (Attachment B).
The outfitting of the new vehicles will be completed by Priority 1 Public Safety Equipment, Inc. The City currently contracts with Priority 1 for fleet maintenance and outfitting. Priority 1 will purchase and install the necessary equipment to make the vehicles “patrol ready.” This will include the installation and purchase of wire harnesses, push bars, LED lights for emergency driving, light bars, and sirens. To lower cost and reduce unnecessary environmental waste, Priority 1 will reuse any operable, salvageable equipment from vehicles that have been taken out of service. Priority 1 has provided a written estimate of $250,034.00 to purchase and outfit the equipment needed for the ten new vehicles. The estimate from Priority 1 is attached to this Staff Report (Attachment C).
Environmental Review
Not required.
Financial Impacts
This Council action would reallocate $864,774.00. Since the reallocated funds would be exclusively derived from salary savings from the previously adopted FY 2022-2023 budget, no additional appropriations would be required. (Account number 690-16-003).
Staff intends to make all purchases outlined in FY 2023, however staff requests Council authority to expend any balance leftover in FY 2024.
ATTACHMENT(S)
1. Attachment A: Resolution Approving the Sole Source Procurement and Authorizing the City Manager to Execute Purchase Agreement(s) for the Purchase and Outfitting of 10 Police Vehicles, in an Amount not to Exceed $864,774.00
2. Attachment B: Bid Sheet from Future Chevrolet
3. Attachment C: Cost Estimate for the purchase and installation of the necessary equipment by Priority 1 Public Safety Equipment Inc.
PREPARED BY: Brian Anthony, Lieutenant, Police Department