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APPROVE A MOTION AND RATIFY THE EMERGENCY PURCHASE OF POLICE AND FIRE DEPARTMENTS VEHICLES
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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 findings and ratify the City Manager’s approval to execute an emergency Purchase Order to Michael Hohl Motor Company, Carson City, NV, in the amount of $234,362.72, for the purchase of four 2023 Chevrolet Tahoes 4WD PPV for the Police Department K-9 Division.
3. Approve findings and ratify the City Manager’s approval to execute an emergency Purchase Order to Phil Long Ford of Denver LLC, Denver, CO, in the amount of $194,240, for the purchase of four 2022 Ford Utility SSV Expeditions 4WD for the Police and Fire Departments.
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
On May 1, 2023, the City Manager approved a Single Available Source procurement for the purchase of four 2023 Chevrolet Tahoes 4WD PPV that will replace four K-9 vehicles for the Police Department’s K-9 Division, and four 2022 Ford Utility SSV Expeditions 4WD to replace two Watch Commander vehicles for the Police Department and two Battalion Chief vehicles for the Fire Department. Public Works’ staff located four in stock PPV Tahoe units at Michael Hohl Motor Company, Carson City, NV, and four SSV Expedition units at Phil Long Ford of Denver LLC, Denver, CO, available for purchase with an estimated delivery date of May 2023. A time-sensitive Purchase Order (PO) was required to hold and secure the procurement of the units.
It is recommended that Council approve a motion ratifying the City Manager approval to execute an emergency PO with Michael Hohl Motor Company, in the amount of $234,362.72, for the Single Available Source procurement purchase of four 2023 Chevrolet Tahoes 4WD PPV (Attachment A), and execute an emergency PO with Phil Long Ford of Denver LLC, in the amount of $194,240, for the Single Available Source procurement purchase of four 2022 Ford Utility SSV Expeditions 4WD (Attachment B).
DISCUSSION
Background
The City’s replacement criteria for police interceptors and other marked patrol vehicles, based on industry standards for performance and efficiency, is six years or 100,000 miles. Adherence to this standard replaces equipment before routine failures and breakdowns are experienced, reducing 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 public safety and emergency response vehicles. Fleet staff identified eight vehicles in the Police and Fire Departments that exceeded the age and/or mileage criteria.
In 2022, a PO was approved for the purchase of four 2022 Chevrolet Tahoe Sport Utility Vehicles (SUVs). The vendor later canceled the PO due to supply chain issues.
Public Works sought multiple resources to acquire the needed replacement units. Quotes were solicited multiple times between July 2022 through March 2023. One vendor, Michael Hohl Motor Company, Carson City, NV, was responsive and had the Chevrolet Tahoes available. On May 1, 2023, an emergency Single Available Source procurement was approved to issue an emergency PO to Michael Hohl Motor Company, Carson City, NV, in the amount of $234,362.72, for the purchase of four 2023 Chevrolet Tahoes 4WD PPV (Attachment A).
The Police and Fire Departments had two Watch Commander units and two Battalion Chief units, respectively, that required replacement. Quotes for the replacement of units were solicited on November 9, 2022, for Hybrid Sedans, Midsize SUVs, and Police Rated SUVs, Project No.OM-23-054, with no bids submitted. Vendors declined to participate in procurement solicitations because they could not commit to supplying the requested vehicles.
Public Works sought multiple resources to acquire the needed replacement units. Phil Long Ford of Denver LLC, Denver, CO, had the Ford Utility SSV Expeditions 4WD available. On May 1, 2023, an emergency Single Available Source procurement was approved to issue an emergency PO to Phil Long Ford, Denver, CO, in the amount of $194,240 (Attachment B).
Present Situation
On May 1, 2023, the City Manager approved the Single Available Source procurement to issue an emergency PO to Michael Hohl Motor Company, in the amount of $234,362.72, for the purchase of four 2023 Chevrolet Tahoes 4WD PPV, and to issue an emergency PO to Phil Long Ford in the amount of $194,240, not including applicable sales tax or other required fees, for the purchase of four 2022 Ford Utility SSV Expeditions 4WD.
The City received delivery of all eight vehicles in October 2023 and is currently preparing for the upfit and release of these units to the Police and Fire Departments.
The emergency POs were processed in accordance with the provisions of Stockton Municipal Code (SMC) section 3.68.070, which provides an exception to the competitive bidding process under certain circumstances, including cases of emergencies. SMC section 3.68.070 requires that a written report, including findings upon which the emergency was based, be provided to the City Council no later than its next regularly scheduled Council meeting.
It is recommended that Council approve a motion ratifying the expenditure of $234,362.72 to Michael Hohl Motor Company and the expenditure of $194,240 to Phil Long Ford for the emergency purchase of police and fire department vehicles and approve the appropriate findings which support an exception to the competitive bidding process.
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. All of the identified vehicles have surpassed the replacement life-cycle timeline by more than six years and utilization of over 100,000 miles. The K-9 vehicles were scheduled for replacement in Fiscal Year 2022-23.
2. PO No. 200403, issued for the four 2022 Chevrolet Tahoe SUV units, was canceled by the supplier with no anticipated reorder date available. Fleet sought out multiple resources and found one vendor who had a supply of this vehicle available.
3. Bid solicitation in November 2022, Project No. OM-23-054, for the purchase of four Ford Expedition units rendered no responses for the production of the required vehicle. Fleet sought out multiple resources and found one vendor who had a supply of this vehicle available.
4. Other agencies were competing to secure the same vehicles, and any delay would have resulted in the City not being able to readily find the needed replacements.
FINANCIAL SUMMARY
There is sufficient funding in the Fleet Internal Service Fund, Equipment Acquisition Account, to purchase four 2023 Chevrolet Tahoe 4WD PPV units and two 2022 Ford Utility SSV Expedition 4WD units for the Police Department, and in Project No. WARP101, to fund the purchase of two 2022 Ford Utility SSV Expedition 4WD units for the Fire Department.
ACCOUNT NUMBER AMOUNT VENDOR
4530-718-800004-500-000-00-45-000-000 $234,362.72 Michael Hohl Motor Co.
4530-718-800004-500-000-00-45-000-000 $ 97,120.00 Phil Long Ford
0010-156-800004-280-282-30-00-000-000 $ 97,120.00 Phil Long Ford
Attachment A - Approved Emergency PO - Michael Hohl Motor Company
Attachment B - Approved Emergency PO - Phil Long Ford of Denver LLC