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APPROVE RESOLUTION TO AUTHORIZE THE PURCHASE OF 23 POLICE INTERCEPTOR UTILITY VEHICLES
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the purchase of 23 Police Interceptor Utility Vehicles from Big Valley Ford, of Stockton, CA, in the amount of $776,869.85.
2. Appropriate funds in the amount of $776,869.85 from the Fleet Internal Service Fund (501-0000-101) to the Fleet Internal Service Fund Fiscal Year 2018-19 operating account (501-5060-670).
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
The Fiscal Year (FY) 2017-18 replacement budget for the Fleet Internal Service Fund (ISF) includes funding to replace 23 patrol units utilized by Police Department staff. On May 3, 2018, the purchase of 23 Police Interceptor Utility Vehicles was put out to bid. On May 24, 2018, two bids were received, and Big Valley Ford submitted the lowest responsive bid. The recommended resolution authorizes the purchase of 23 Police Interceptor Utility Vehicles from Big Valley Ford for a total cost of $776,869.85 (Attachment A).
The Police Interceptor Utility Vehicle purchase was commenced but not completed in FY 2017-18, and the funding was returned to the fund balance at year end. To complete the purchase, staff recommends re-appropriating the FY 2017-18 funding from the Fleet ISF balance to the Fleet ISF operating account for FY 2018-19.
DISCUSSION
Background
The FY 2017-18 replacement budget for the Fleet ISF included funding to replace 23 marked (black and white) patrol units utilized by Police Department staff. The City currently has 217 marked vehicles assigned to the police patrol division, and 187 of these vehicles are 2013 model year and newer Ford Police Interceptor Utility Vehicles. The remaining 30 patrol units consist of 29 2011 model year and older Ford Crown Victoria sedans, and one 2013 model year Ford Police Interceptor sedan.
The City’s replacement criteria for marked police units, 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 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, which includes all public safety and emergency response vehicles. Fleet staff identified 23 vehicles in service that exceed the age and/or mileage criteria, or have recurring mechanical or operational problems (Attachment B). Replacement of these units is recommended. The final six Crown Victoria sedans will be replaced out of the FY 2018-19 fleet replacement budget.
Fleet staff prepared vehicle specifications and utilized the competitive bid process to obtain bids for the supply of these vehicles. The City’s Patrol Utility Vehicle specification is based on the Ford unit, but is generic to allow all manufacturers to bid if they have a comparable model. An initial bid process for this purchase was conducted in October of 2017, but yielded only one bid. Council approved a motion to reject this single bid on May 15, 2018, by Motion No. 2018-05-15-1125.
Present Situation
A Notice Inviting Bids for the purchase of 23 Sport Utility Patrol Vehicles was published in The Record on Saturday, May 4, 2018, and Sunday, May 5, 2018, respectively. On that same weekend, the Notice was e-mailed to 20 local vendors, including Big Valley Ford, Chase Chevrolet, and Stockton Dodge. A notification was also e-mailed through ASK Stockton to 2,567 recipients.
On May 24, 2018, bids were received from Big Valley Ford, of Stockton, CA, and Republic Ford, of Republic, MO. The response from Republic Ford did not include the required non-collusion affidavit. In addition, Republic Ford’s bid did not include sales tax nor Department of Motor Vehicle documentation fees. With sales tax and the local vendor preference applied, Big Valley Ford is the lowest bidder.
COMPANY NAME BID AMOUNT ADJUSTED BID AMOUNT
(including all taxes and fees) (local preference applied)
Big Valley Ford $776,869.85 $738,026.36
(Stockton, CA)
Republic Ford $756,215.79 $756,215.79
(Republic, MO)
Stockton Municipal Code section 3.68.090 gives a five percent bid preference to businesses located within the City of Stockton, and a two percent bid preference to businesses located within San Joaquin County. The bid from Big Valley Ford has been adjusted by five percent.
The bid from Big Valley Ford meets the bid specifications and is regular in all respects. It is recommended that Council adopt a resolution authorizing the purchase of 23 Ford Police Interceptor Utility Vehicles from Big Valley Ford. The 23 vehicles being replaced will be sold at auction.
The purchase process was commenced but not completed in FY 2017-18, and the funding was returned to the fund balance at year end. To complete the purchase, staff recommends re-appropriating the FY 2017-18 funding from the Fleet ISF balance to the Fleet ISF operating budget for FY 2018-19.
FINANCIAL SUMMARY
The purchase of the 23 Police Interceptor Utility Vehicles was budgeted in the FY 2017-18 Fleet replacement budget. Since the purchase was not completed in FY 2017-18, the funding was returned to the fund balance and needs to be re-appropriated from the Fleet ISF fund balance to the 2018-19 Fleet replacement account as follows:
From: 501-0000-101 To: 501-5060-670 Amount: $776,869.85
With the re-appropriation, there will be sufficient funds available in the Fleet ISF account 501-5060-670 for the purchase of 23 Police Interceptor Utility Vehicles.
Below is the purchase breakdown of 23 new units from Big Valley Ford:
Per Unit Cost Total (23 Units)
Unit Price $30,900.00 $710,700.00
DMV Document Fee $ 80.00 $ 1,840.00
9% Sales Tax $ 2,788.20 $ 64,128.60
CA Tire Fee $ 8.75 $ 201.25
Total Purchase Price $33,776.95 $776,869.85
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - Big Valley Ford Bid
Attachment B - Vehicle Replacement List