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ADOPT A RESOLUTION AND RATIFY THE EMERGENCY PURCHASE OF POLICE VEHICLES AND ONE DUMP TRUCK, AND APPROVE CONTRACT CHANGE ORDER NO. 1 WITH STOMMEL DBA LEHR AUTO ELECTRIC
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Appropriate funds in the amount of $2,231,808.32 from the Fleet Internal Service Fund Balance to the operating Fleet Internal Service Fund, Equipment Acquisition Account.
2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
3. Approve findings and ratify the City Manager’s approval to execute an Emergency Purchase Order to Phil Long Ford of Denver LLC, of Denver, CO, in the amount of $117,340, for the purchase of two Ford Utility SSV Expeditions for the Police Department.
4. Approve findings and ratify the City Manager’s approval to execute an Emergency Purchase Order to Big Valley Ford of Stockton, CA, in the amount of $117,850.70, for the purchase of one 5-yard dump truck for the Municipal Utilities Department.
5. Approve findings and ratify the City Manager’s approval to execute an Emergency Purchase Order to Folsom Lake Ford, Inc. of Folsom, CA, in the amount of $5,506,970, for the purchase of 100 Ford Police Interceptor Utility Vehicles for the Police Department.
6. Approve Contract Change Order No. 1 with Stommel DBA Lehr Auto Electric of Sacramento, CA, in the amount of $2,231,808.32 for the upfitting of police vehicles, bringing the contract total to $4,389,854.12.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
On November 9, 2023, the City Manager approved an Emergency Single Available Source (SSJ) procurement to Phil Long Ford of Denver LLC, of Denver, CO, in the amount of $117,340, for the purchase of two Ford Utility SSV Expeditions for the Police Department (Attachment A).
On December 6, 2023, the City Manager approved an Emergency SSJ procurement to Big Valley Ford of Stockton, CA, in the amount of $117,850.70, for the purchase of one 5-yard dump truck for the Municipal Utilities Department (MUD) (Attachment B).
On February 6, 2024, the City Manager approved an Emergency SSJ procurement to Folsom Lake Ford, Inc. of Folsom, CA, in the amount of $5,506,970, for the purchase of 100 Ford Police Interceptor Utility Vehicles for the Police Department (Attachment C).
It is recommended that Council adopt a resolution ratifying the City Manager’s approval to execute Emergency Purchase Orders (POs) with Phil Long Ford of Denver LLC in the amount of $117,340 for the purchase of two Ford Utility SSV Expeditions; with Big Valley Ford in the amount of $117,850.70, for the purchase of one 5-yard dump truck; and with Folsom Lake Ford, Inc. in the amount of $5,506,970, for the purchase of 100 Ford Police Interceptor Utility Vehicles. The total purchase cost for all three Emergency POs is $5,742,160.70.
It is also recommended that the City Manager approve Contract Change Order (CCO) No. 1 with Stommel DBA Lehr Auto Electric of Sacramento, CA, in the amount of $2,231,808.32 for the upfitting of police vehicles, bringing the contract total to $4,389,854.12.
DISCUSSION
Background
On April 12, 2023, the Police Department submitted a request to the City Manager to purchase two vehicles as additions to the fleet. One vehicle was requested to support the Recruiting Division for travel to recruiting events and the second vehicle to support the Public Information Officer in traveling to City of Stockton Police Department events. Due to supply chain issues, many vendors were declining to participate in requests for proposals and these vehicles were not available on the State Contract. The vehicles were searched nationwide, and Phil Long Ford of Denver LLC was able to supply both vehicles. On November 9, 2023, an Emergency SSJ procurement was approved to issue an Emergency PO to Phil Long Ford of Denver LLC, in the amount of $117,340, to purchase two Ford Utility SSV Expeditions (Attachment A).
On November 21, 2022, Public Works solicited bids for Various Trucks, Project No. OM-23-057. The bid included a solicitation for a new 5-yard dump truck to support the Water Division of the MUD; no bid responses were received. Due to supply chain shortages, Public Works experienced delays in ordering vehicles. In response to the lack of bids, Public Works contacted several dealerships in search of a vehicle that would meet the operational needs of the MUD. On December 6, 2023, an Emergency SSJ procurement was approved to issue an Emergency PO to Big Valley Ford, in the amount of $117,850.70, to hold and secure the purchase of one 5-yard dump truck (Attachment B).
On August 22, 2023, by Resolution No. 2023-08-22-1228, Council approved the purchase of 29 Ford Police Interceptor Utility Vehicles from Folsom Lake Ford, Inc. of Folsom, CA. However, Public Works identified 100 marked patrol units that required replacement. All 100 vehicles surpassed our typical industry standards for performance and efficiency, which is 6 years or 100,000 miles. Staff contacted Folsom Lake Ford, Inc. and were able to negotiate the additional purchase of 71 units for a total purchase of 100 units. November 20, 2023, an Emergency SSJ procurement was approved to issue an Emergency PO to Folsom Lake Ford, Inc. of Folsom, CA, in the amount of $117,340, to hold and secure the purchase of 100 Ford Police Interceptor Utility Vehicles (Attachment C). The 100 vehicles are being delivered with only prewiring and paint. The dealership is not installing any lighting, sirens, or auxiliary equipment.
On March 7, 2023, by Motion No. 2023-03-07-1206, Council approved the Police Department and City Vehicle Up-Fitting, Project No. OM-23-022, for Fiscal Year (FY) 2024-25, in which 29 Ford Police Interceptor Utility Vehicles were budgeted for upfitting. With the additional purchase of the 71 Ford Police Interceptor Utility Vehicles, Public Works is requesting the approval of CCO No. 1 for an increase of $2,231,808.32
Present Situation
The Emergency POs were processed in accordance with Stockton Municipal Code (SMC) section 3.68.070, which provides an exception to the competitive bidding process under certain circumstances, including cases of emergencies.
The total cost of two Ford Utility SSV Expeditions from Phil Long Ford of Denver LLC, one 5-yard dump truck from Big Valley Ford, and 100 Ford Police Interceptor Utility Vehicles from Folsom Lake Ford, Inc. is $5,742,160.70. It is recommended that Council adopt a resolution ratifying the total expenditure of $5,742,160.70 for the emergency vehicle purchases and the appropriate findings which support an exception to the competitive bidding process.
Public Works is requesting approval for CCO No. 1 with Stommel DBA Lehr Auto Electric, Contract No. 423000428, in the amount of $2,231,808.32. The change order will provide upfitting for the additional 71 units not accounted for in FY 2024-25, budgeting for a new total of $4,389,854.12.
Findings
Pursuant to SMC section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. The use of the Single Available Source procurement purchase is appropriate for these procurements due to supply chain issues in ordering and receiving vehicles.
2. Public Works sought out multiple resources for the supply of vehicles. Upon solicitation of requests, only one source was available for each of the postings.
3. Other agencies were competing to secure the same vehicles, and any delay would have resulted in the City not being able to readily secure the needed vehicles.
4. The use of the Single Available Source procurement is appropriate for this purchase because it allows the City to be more competitive in acquiring equipment in current industry conditions as vendors struggle to honor quoted pricing through the duration of a traditional government low-bid procurement process.
FINANCIAL SUMMARY
With the appropriation of funds in the amount of $2,231,808.32 from the Fleet Internal Service Fund (ISF) to the Fleet ISF, Equipment Acquisition, Account No. 4530-718-800004-500-000-00-45-000-000, there will be sufficient funding for the purchase of the additional 71 Police Interceptor Utility Vehicles and CCO No. 1 with Stommel DBA Lehr Auto Electric.
MUD had sufficient funding for the 5-yard dump truck in the amount of $117,850.70 in the Water Utility Fund Vehicle Acquisition Account No. 6514-000-800003-600-000-00-65-000-000.
The Police Department had sufficient funding for the purchase of two Ford Utility SSV Expeditions in the amount of $117,340 in Project No. P022022-EQPACQ.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Phil Long Ford of Denver LLC
Attachment B - Big Valley Ford
Attachment C - Folsom Lake Ford, Inc.