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PW Fleet Vehicle Purchases____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: 05/06/2019 Disposition: Resolution 14663 Agenda Item No.: 4.g Meeting Date: May 6 , 2019 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Public Works Prepared by: Bill Guerin Director of Public Works City Manager Approval: ________ File No.: 01.14.16 TOPIC: FLEET VEHICLE PURCHASES SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO INCREASE THE APPROVED PURCHASE PRICE FOR THREE POLICE PATROL CARS BY $8,000 EACH ($24,000 TOTAL FOR ALL THREE), FOR A TOTAL NOT-TO- EXCEED PURCHASE AMOUNT OF $195,000. RECOMMENDATION: Adopt a resolution authorizing the City Manager to increase the approved purchase price for three police patrol cars by $24,000, for a total not-to-exceed amount of $195,000. BACKGROUND: The City of San Rafael’s vehicle fleet consists of 185 vehicles. This includes passenger cars and trucks, as well as the City’s specialty vehicles supporting the Fire Department, Police Department, Public Works, and others. The majority of City vehicles are utilized by public safety (Police and Fire), followed by Public Works. The Department of Public Works annually proposes a list of vehicles that are recommended for replacement during that fiscal year. The annual budget for vehicle replacement is set in the Vehicle Replacement Fund (Fund #600). Since FY 2017-18, the following fleet purchases have been approved by City Council: Council Meeting Date Vehicles/Equipment Purchased June 5, 2017 3 Fire Command Vehicles 3 Public Works Equipment Vehicles (Backhoe, Sweeper, Vacuum Truck) 1 Parking Enforcement vehicle October 2, 2017 2 Fire Ambulances December 18, 2017 3 Public Works Commercial Work Trucks 1 Public Works Utility Truck 1 Police Department Utility Truck 1 Parking Services Utility Truck 1 Fire Department Ambulance SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 September 17, 2018 3 Police Patrol Cars (price increase proposed) 1 Police Investigation Unit 1 Fire Department Heavy Duty Utility Truck The City’s Fleet Management Policy and Procedures (Attachment 3) outlines the role of the Fleet Manager and various policies around replacement and repairs (including a commitment to purchase “green” (e.g. hybrid or electric vehicles) whenever possible). In addition, the Policy and Procedures document suggests a useable life for fleet vehicles by type. Although the usable life schedule outlined in the Fleet Policy and Procedures serves as a guide for estimating when replacement should occur, vehicles are not necessarily replaced in the number of years dictated by this schedule. Ultimately, the decision to replace a vehicle or other piece of equipment is based on its safety, mechanical condition, repair history and cost, the department’s operational needs, and available finances. This results in some vehicle replacements made well after a vehicle’s original anticipated replacement date, and at times vehicles may also be recommended for replacement before their scheduled replacement date. ANALYSIS: After the City Council approved the purchase of three 2019 Ford Explorer Interceptor Police Patrol units at the September 17, 2018 City Council meeting, a purchase order was created and provided to the State-contracted dealership which supplied the quote and bid price included with the September 2018 staff report. At that time, the dealership informed the City that Ford Company had oversold the 2019 Ford Police Interceptors, and the City’s order could no longer be fulfilled. In fact, all public agencies with active orders of the Ford Interceptors made after July 2018 were issued a notice that dealerships were unable to supply the 2019 models, and agencies must wait until the 2020 Ford Interceptor model and corresponding State bid came out in early 2019. Therefore, like other agencies which placed orders after July, San Rafael had to wait for the 2020 models to be available for purchase. However, while the wait was not ideal, the 2020 Ford Interceptor offers some important upgrades and advantages over the 2019 model. Chiefly, it will be Ford’s first hybrid Police unit. This will not only help achieve the City’s goal to continue to make significant strides in greening our fleet but will also yield significant savings in fuel costs over the vehicle’s useful life. The new 2020 Ford Interceptor Model, with the hybrid option, is about an $8,000 increase per car over the 2019 model that was approved in the September Council meeting. Additionally, the price for the 2019 models had been the last year of a multi-year state contract, and therefore a significant price increase for even the non-Hybrid model was anticipated for the 2020 Ford Interceptors. Dept Vehicle to be replaced Last year replaced Replace with (Make/Model) 2019 Price approved 9/17/18 Increase price for 2020 hybrid models Total 2020 model price (proposed) Outfitting Police Patrol Car (#226) 2013 Ford Interceptor Hybrid $41,000 $8,000 $49,000 $16,000 Police Patrol Car (#241) 2013 Ford Interceptor Hybrid $41,000 $8,000 $49,000 $16,000 Police Patrol Car (#229) 2014 Ford Interceptor Hybrid $41,000 $8,000 $49,000 $16,000 $123,000 $24,000 $147,000 $48,000 New Grand Total $195,000 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 Negotiated and administered by the State of California General Services Agency, the State Contract is a cooperative purchasing program that local governments (and other government agencies) are able to “piggyback” on with their own purchases. The prices for vehicles and equipment in the statewide contract are awarded to the dealership which bids the lowest price for that make/model. The San Rafael Municipal code provisions for Procurement allow for the utilization of cooperative purchasing programs: Municipal Code 2.55.260 - Cooperative purchasing programs. “Purchases of supplies, material, equipment or services and sales of surplus property made under a cooperative purchasing program, utilizing purchasing agreements maintained by the state, county or other public agencies are exempt from the requirements of this chapter. To the extent possible, cooperative purchases joined will be competitively awarded, and documentation as to the advantage of the cooperative purchase will be retained.” FISCAL IMPACT: There are sufficient funds available in the Vehicle Replacement Fund (#600) for the increase in purchase price of $24,000 over the amount originally approved in the September 17, 2018 Council Meeting. All City departments pay into the Vehicle Replacement Fund each year as an internal service charge. The amount they pay is based on the number and dollar value of vehicles/equipment the Department utilizes and is amortized over the anticipated useful life. Per the City’s purchasing policy, all retired City vehicles will be competitively bid and sold at auction or to other agencies. Any income received from the sale of the vehicles will be deposited back into the Vehicle Replacement Fund towards for future vehicle purchases. OPTIONS: 1. Approve the resolution authorizing the City Manager to increase the approved purchase price for three police patrol units by $24,000, for a total not-to-exceed purchase amount of $195,000. 2. Direct the Department of Public Works to modify the proposed purchases. 3. Direct the Department of Public Works to withhold the proposed purchases. This option may have additional costs associated with vehicle/equipment rentals in the event that the current vehicles or equipment experience mechanical failure. RECOMMENDED ACTION: Adopt the resolution. ATTACHMENTS: 1. Resolution 2. Police Department – Folsom Lake Ford 2020 Ford Interceptor Quote 3. City of San Rafael Fleet Management Policy and Procedures 1 RESOLUTION NO. 14663 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AUTHORIZING THE CITY MANAGER TO INCREASE THE APPROVED PURCHASE PRICE FOR THREE POLICE PATROL CARS BY $8,000 EACH ($24,000 TOTAL FOR ALL THREE), FOR A TOTAL NOT-TO-EXCEED PURCHASE AMOUNT OF $195,000. WHEREAS, San Rafael’s various departments operate a fleet of 185 vehicles; and WHEREAS, the management and replacement of the City’s fleet of vehicles and equipment is governed by the guidelines set forth in San Rafael’s Fleet Management Policies and Procedures document issued September 6, 2012; and WHEREAS, the City Council approved the purchase of five vehicles at its September 17, 2018 regular meeting: three Police patrol cars, one investigation vehicle (Police), and one utility truck (Fire Department); and WHEREAS, due to the timing of the order placed after the September 17, 2018 Council meeting, the Police patrol cars as quoted, and bid were no longer available; and WHEREAS, the City has rebid the vehicles for the 2020 hybrid models and received updated pricing through the State of California General Services Agency contract which includes a price increase of $8,000 per vehicle for a total increase of $24,000 over the amount approved at the September 17, 2018 Council Meeting for the three police patrol units; and WHEREAS, there are sufficient funds in the City’s Vehicle Replacement Fund (#600) to cover the price increase of $8,000 per vehicle; and funds shall be appropriated accordingly in order to support these purchases totaling $195,000; NOW, THEREFORE BE IT RESOLVED that the City Council of the City of San Rafael authorizes the City Manager to approve the increase on the purchase price for three Police patrol cars by $24,000 each, for a total purchase price not-to-exceed amount of $195,000. I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday, the 6th day of May 2019 by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None LINDSAY LARA, City Clerk 4/11/2019 REVISED 2020 ORDERPRODUCTION BEGINS 5/6/2019 ENGINE IDLE47A LESS $500.00 DISCOUNT20 DAY PAYMENT INCLUDES PAINTED WHITEROOF AND 2 FRONT DOORS $43,376.80$ 3,903.92 TAX @ 9%$ 8.75 CA TIRE FEE---------------$47,289.47 DELIVERED 52P HIDDEN DOOR LOCK