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HomeMy WebLinkAbout2018-05-08; City Council; ; Authorize the purchase of eight Ford Explorer Police Interceptor vehicles from Downtown Ford for $449,216 and appropriate an additional budget allocation of $93,216CAReview ~ ~ CITY COUNCIL ~ Staff Report Meeting Date: To: From: Staff Contact: Subject: May 8, 2018 Mayor and City Council Kevin Crawford, City Manager Shawn Gaskari, Management Analyst shawn.gaskari@carlsbadca.gov or 760-434-2925 Authorize the purchase of eight Ford Explorer Police Interceptor vehicles from Downtown Ford for $449,216 and appropriate an additional budget allocation of $93,216. Recommended Action Adopt a Resolution authorizing the purchase of eight Ford Explorer Police Interceptor vehicles from Downtown Ford for $449,216, appropriating an additional budget allocation of $93,216, and authorizing the administrative services director to appropriate and transfer these funds from the General Fund to the Fleet Replacement Fund. Executive Summary In June 2017, the Carlsbad City Council adopted the fiscal year (FY) 2017-18 Operating Budget, approving the replacement of six Police vehicles. Additionally, two vehicles were approved for purchase in June 2016 for the FY 2016-17 Operating Budget. In total, Fleet seeks to purchase eight Ford Explorer Police Interceptors for a total of $449,216. In addition to the budget adoption process, City Council authorization is required for vehicle acquisitions in excess of $100,000, either individually or collectively. Staff is recommending that the City Council authorize the purchase of eight replacement Ford Explorer Police Interceptor vehicles for a total of $449,216, including tax. Staff is also recommending that the City Council approve an additional budget allocation of $93,216 and authorize the administrative services director to appropriate and transfer these funds from the General Fund to the Fleet Replacement Fund. Discussion The Police Department seeks to retire and replace eight existing Police vehicles, to include four Chevy Caprices, three Ford Fusions and one Ford Crown Victoria, with eight Ford Explorer Police Interceptors. These eight vehicles all meet the mileage and/or age requirements of Administrative Order No. 3 and have been approved by the Fleet Committee for replacement. The eight replaced vehicles will be sold at auction. Five of the vehicles that are currently scheduled for replacement are discontinued models and will be replaced with Ford Explorers. May 8, 2018 Item #10 Page 1 of 6 There are also three Ford Fusions that will be replaced with Ford Explorers. In 2016 the Police Department reallocated four positions within the department to create a Crime Suppression Team. These positions were from the Investigations Division, the Traffic Division and the Professional Standards and Services Division. With the creation of this team it was necessary to convert three detective vehicles (three Ford Fusions) to unmarked enforcement vehicles (three Ford Explorers). The three Ford Fusions that are due for replacement are now more than ten years old. There are three major components in the cost of a Police Interceptor: base cost of the vehicle, cost of outfitting and new technology. With the change in vehicle type there is a marked increase in base vehicle cost and outfitting. In the past, to save on costs, equipment was reallocated from older vehicles to the new vehicles. Due to the change in vehicle type, and constant advancements in technology and vehicle design, this is not possible for these vehicles. The new vehicles will be purchased from Downtown Ford through competitive bid no. 16153311007 conducted by the City of Sacramento in March 2016. Downtown Ford is offering the City of Carlsbad the same pricing offered to the City of Sacramento. This type of cooperative purchasing is allowed pursuant to Section 3.28.100 of the Carlsbad Municipal Code. Going forward, procedures and processes have been established in conjunction with the Police Department to try and minimize exposure to future shortfalls in funding. Staff has analyzed and adjusted accounts to remedy future needs and to account for increased costs. Among these newly established processes are regular assessments by Public Works staff in conjunction with the Police Department to review and adjust asset specifications and costs to current operational requirements. Fiscal Analysis The approved budget estimate for the original five replacement Ford Explorer Police Interceptors was $52,000 per vehicle. As of Feb. 13, 2018, the cost of a Ford Explorer Police Interceptor is $32,764 (not outfitted), in addition to approximately $23,388 for outfitting, for a total of $56,152 per vehicle. This is an increase of $4,152 per Ford Explorer Police Interceptor vehicle. The additional expense is associated with the incremental increases in cost of outfitting parts and a significant increase of approximately $2,000 for the computer consoles and docks. The total increase for the originally planned Ford Explorer Police Interceptors is $20,760 (five vehicles times $4,152). The approved budget estimate for the original three replacement Ford Fusions was $32,000 per vehicle. These three vehicles are now planned to be replaced with Ford Explorer Police Interceptors at an additional cost of $24,152 per vehicle, for a total cost increase of $72,456 (three vehicles times $24,152). The eight replacement Ford Explorer Police Interceptors will cost $449,216 in total. The currently approved budget estimate for the purchase of all eight replacement vehicles is $356,000. The eight replacement Ford Explorer Police Interceptor vehicles will cost $262,109.70 (not outfitted) as quoted by Downtown Ford. The remaining existing budget amount of May 8, 2018 Item #10 Page 2 of 6 $93,890.30 will be utilized for outfitting the eight replacement vehicles, leaving a budget shortfall of $93,216. The Public Works General Services Division, on behalf of the Carlsbad Police Department, is recommending that the City Council approve the additional $93,216 budget necessary to purchase the eight replacement Ford Explorer Police Interceptors and authorize the administrative services director to appropriate and transfer these funds from the General Fund to the Fleet Replacement Fund. Next Steps The vehicles will take approximately six months for delivery and outfitting. Environmental Evaluation (CEQA) Pursuant to Public Resources code Section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect change in the environment, and therefore does not require environmental review. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to scheduled meeting date. Exhibits 1. City Council Resolution. 2. Downtown Ford Quote. May 8, 2018 Item #10 Page 3 of 6 RESOLUTION NO. 2018-068 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE PURCHASE OF EIGHT FORD EXPLORER POLICE INTERCEPTOR VEHICLES FROM DOWNTOWN FORD FOR $449,216, APPROPRIATING AN ADDITIONAL BUDGET ALLOCATION OF $93,216, AND AUTHORIZING THE ADMINISTRATIVE SERVICES DIRECTOR TO APPROPRIATE AND TRANSFER THESE FUNDS FROM THE GENERAL FUND TO THE FLEET REPLACEMENT FUND. Exhibit 1 WHEREAS, the City Council ofthe City of Carlsbad, California has determined that funds in the amount of $356,000 were previously appropriated to the fiscal year 2017 and 2018 Fleet Vehicle Replacement Fund by the Carlsbad City Council for the purchase of five Ford Explorer Police Interceptor vehicles and three Ford Fusion vehicles; and WHEREAS, city staff is now proposing to replace the three Ford Fusions with three Ford Explorer Police Interceptors, for a total of eight Ford Explorer Police Interceptor vehicles. This change is necessary to address a shortage in the number of Ford Explorer Police Interceptors available to patrol officers, as well as issues with vehicle maintenance downtime, without increasing the number of new vehicles purchased; and WHEREAS, the City Council of the City of Carlsbad, California has determined that additional funds in the amount of $93,216 will be appropriated for the purchase of the eight replacement Ford Explorer Police Interceptors for a total of $449,216; and WHEREAS, the Fleet Committee has reviewed the overall condition, maintenance history and future maintenance needs and determined it is in the best fiscal interest of the City of Carlsbad to replace the requested vehicles; and WHEREAS, in accordance with Carlsbad Municipal Code section 3.28.100, the City of Carlsbad utilized competitive bid no. 16153311007 established through a cooperative purchasing agreement by the City of Sacramento; and WHEREAS, the City of Carlsbad has procured a bid from Downtown Ford to provide eight Ford Explorer Police Interceptors for a total cost of $449,216 and the purchasing officer has determined it is in the city's best interest to enter into a contract with Downtown Ford to purchase these vehicles. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: May 8, 2018 Item #10 Page 4 of 6 Exhibit 1 1. That the above recitations are true and correct. 2. That the City of Carlsbad General Services Division is authorized to purchase eight Ford Explorer Police Interceptors for a total cost of $449,216. 3. The administrative services director is authorized to appropriate $93,216 from the General Fund to the Fleet Replacement Fund, to pay for the increase in vehicle replacement costs. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 8th day of May, 2018, by the following vote, to wit: AYES: NOES: ABSENT: M. Packard, M. Schumacher, C. Schumacher. None. M. Hall, K. Blackburn. (SEAL) May 8, 2018 Item #10 Page 5 of 6 Jeff Smith, Police Lieutenant Shawn Gaskari, General Services Management Analyst May 8, 2018 Purchase of Eight Replacement Police Vehicles Agenda Item No. 10 Adopt a Resolution authorizing the purchase of eight Ford Explorer Police Interceptor vehicles from Downtown Ford for $449,216 and appropriating an additional budget allocation of $93,216, and authorizing the administrative services director to appropriate and transfer these funds from the General Fund to the Fleet Replacement Fund. Introduction •As part of the 2017 budget adoption, the Fleet Committee recommended, and council approved, the replacement of two unmarked police sedans •The following year, as part of the 2018 budget adoption, Council approved the replacement of one unmarked and five marked Police vehicles •Since initial approval, technology changes and departmental reorganization to meet service needs has led to increases in costs Service Needs •The Police Department has recently reallocated resources to meet service needs prompting a change in vehicle utilization •The implementation of a newly formed Crime Suppression Team has required a change in vehicle type for mission effectiveness •As a result, the Police Department requests that the three Ford Fusion sedans are replaced with Ford Explorers Cost of Changes •In FY16 the approximate replacement cost of a fully equipped Explorer was $52,000 •In FY18, due to increased costs in technology and outfitting, this cost has increased to $56,152 •Implementation of the Crime Suppression Team led to the change from the Ford Fusion to the Ford Explorer and therefore an increase from $32,000 per vehicle to $56,152 Summary of Costs •The previously approved budget for the purchase of all eight replacement vehicles was $356,000 •The new proposed budget request for eight Ford Explorers is $449,216 •Staff is requesting the appropriation of an additional $93,216 •Any single purchase in excess of $100,000 must be presented to council for approval Process Improvement •In an effort to mitigate unforeseen cost increases associated with future vehicle purchases: •General Services staff now conduct regular meetings with other city departments to explore their business needs •As a result of these meetings estimated replacement costs will be projected and adjusted accordingly Staff Recommendation Adopt a Resolution authorizing the purchase of eight Ford Explorer Police Interceptor vehicles from Downtown Ford for $449,216 and appropriating an additional budget allocation of $93,216, and authorizing the administrative services director to appropriate and transfer these funds from the General Fund to the Fleet Replacement Fund.