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APPROVE MOTION FOR THE PURCHASE OF UNMARKED POLICE VEHICLES
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Approve the use of a Cooperative/Piggyback Purchase Agreement through Sourcewell, Contract No. 091521-NAF, with National Auto Fleet Group of Watsonville, CA, for the purchase of unmarked Police vehicles.
3. Authorize the City Manager to execute a Cooperative/Piggyback Purchase Agreement, in the amount not to exceed $850,000, with National Auto Fleet Group of Watsonville, CA, for the purchase of unmarked Police vehicles.
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 motion.
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Summary
Public Works is responsible for maintaining the City’s fleet of vehicles and equipment, including Police vehicles. Staff recommends the replacement purchase of 17 unmarked vehicles utilized by the Police Department (Attachment A). The proposed replacement units have surpassed their stated life cycles for performance and efficiency of 10 years and/or 100,000 miles. This Cooperative/Piggyback Purchasing Agreement (COOP) will allow for the procurement of a diverse undercover fleet, meeting the needs of the Police Department.
Sourcewell is a public agency based in Minnesota that serves as a municipal contracting agency to streamline the procurement process for public agencies and takes advantage of volume purchasing. The use of COOP contracts streamline administrative costs and procedures while maintaining the integrity of the competitive bidding process. The specifications for the vehicles available through Sourcewell meet the City’s requirements for these types of vehicles.
It is recommended that Council approve a motion authorizing the City Manager to execute a COOP through Sourcewell, with National Auto Fleet Group, of Watsonville, CA, in the amount not to exceed $850,000, for the purchase of unmarked Police vehicles (Attachment B).
DISCUSSION
Background
Public Works is responsible for maintaining the City’s fleet of vehicles and equipment, including Police vehicles. The City’s replacement criteria for sedans, vans, and trucks, based on industry standards for performance and efficiency, is 10 years and/or 100,000 miles. Adherence to this standard replaces equipment before routine failures and breakdowns occur, reducing the demand for extensive mechanical repairs. The replacement standard increases the resources available for preventative maintenance and is critical to the availability and performance of all fleet equipment, including all public safety and emergency response vehicles.
In Fiscal Year (FY) 2022-23, many vehicle manufacturers were still experiencing delays from the COVID pandemic in parts supply chains, which resulted in shortened purchasing windows for buyers. This resulted in ordering banks for government agencies being extremely short and challenging to complete given the government procurement process and competitive purchasing market. In 2025, many vehicle manufacturers will begin experiencing the effects of tariffs, which will result in issues with parts supply chains, delivery/order lead times, and pricing. Due to the current market, Public Works is requesting the approval of a COOP for the purchase of unmarked Police vehicles.
Present Situation
Vehicle manufacturers have not completely caught up with parts supply chain shortages caused by the COVID pandemic and are now challenged with newly imposed tariffs. These shortages have caused fewer vehicles to be manufactured, resulting in an increase in vehicle pricing and a reduction in purchasing timelines.
To increase opportunities to acquire fleet vehicles within the constrained purchasing windows, staff is utilizing a competitively bid COOP, allowing the procurement of various classes, makes, and models of vehicles, and authorization for the City Manager to approve purchase orders for the acquisition of unmarked vehicles. Public Works’ staff anticipate being able to replace approximately 17 unmarked vehicles with this contract. All vehicles identified for replacement will be sold at auction (Attachment A).
Sourcewell is a public agency based in Minnesota that serves as a municipal contracting agency to streamline the procurement process for public agencies and takes advantage of volume purchasing. The use of COOP contracts streamline administrative costs and procedures while maintaining the integrity of the competitive bidding process.
It is recommended that Council approve a motion authorizing the City Manager to execute a COOP through Sourcewell, with National Auto Fleet Group, of Watsonville, CA, in the amount not to exceed $850,000, for the purchase of 17 unmarked Police vehicles (Attachment B).
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. Sourcewell established a COOP with National Auto Fleet Group to provide access to preferential pricing of various makes, models, and manufacturers of vehicles.
2. The National Auto Fleet Group COOP was established pursuant to formal competitive bidding processes conducted by Sourcewell on behalf of its governmental members, of which the City is one.
3. Taking advantage of the leveraged procurement agreements negotiated by Sourcewell will save the administrative expense of City staff conducting separate procurements.
4. The specifications for the replacement equipment available through the Sourcewell contract meet the City’s requirements for their vehicle type.
FINANCIAL SUMMARY
There are sufficient funds in the FY 2025-26 Fleet Internal Service Fund, Equipment Acquisition, to award a COOP to National Auto Fleet Group in the amount not to exceed $850,000 for the purchase of unmarked Police vehicles.
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 - Proposed Vehicle Replacement List
Attachment B - COOP with National Auto Fleet Group