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Home My WebLink AboutStaff Report 422-10TO: HONORABLE CITY COUNCIL 12 FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: NOVEMBER 22, 2010 CMR:422:10 REPORT TYPE: CONSENT SUBJECT: Adoption of a Budget Amendment Ordinance to Create Capital Improvement Program (CIP) ProjectVR-ll000 (Scheduled Vehicle and Equipment Replacements) and Transfer the Remaining Unused Appropriation from CIP Projects VR-07S00 anel VR-OSOOO to VR- 110000 in the Total Amount of $222,205 and Approval of a Purchas~ Order with Downtown Ford Sales in an Amount Not. to Exceed $152,030 for the Purchase of Six Police Patrol Vehicles RECOMMENDATION Staff recommends that Council: 1. Adopt the attached Budget Amendment Ordinance (BAO) to create CIP Project VR- 11000 (Scheduled Vehicle and Equipment Replacements) and transfer the remaining unused appropriation from CIP Projects VR ... 07800 and VR-08000 in the amount of $222,205 in order to provide initial funding to CIP VR-ll 000. 2. Approve and authorize the City Manager to execute a purchase order with Downtown Ford Sales in the amount of $152,030 for the purchase of six police patrol vehicles. DISCUSSION The vehicle and equipment replacement policy described in City Policy and Procedures 4-1 (Vehicle and Equipment Use, Maintenance, and Replacement), provides for the on-going replacement of City fleet vehicles and equipment. Replacements are scheduled using guidelines . based on age, mileage accumulation, and obsolescence. The City's fleet currently includes 27 police patrol vehicles (25 Ford Crown Victoria sedans, one Chevrolet Tahoe and one Ford Expedition). Policy 4-1 prescribes a replacement interval for patrol vehicles of four (4) years or 85,000 miles. In an effort to reduce ongoing costs, Equipment Management has extended this replacement interval to 100,000 miles. The extended interval has not dramatically increased maintenance costs, and the vehicles have remained safe and reliable. However, due to the severe service that patrol vehicles experience (continuous stop-and-go driving; aggressive acceleration and braking; extended idling) it is not recommended that patrol vehicles be kept beyond 100,000 miles as there is a significantly increased risk for high' cost repairs after that point, such as engine or transmission replacements. In addition to wear and tear on the powertrain components, the continuous heavy use of these vehicles places a great deal of wear and tear on the body and interior of the vehicle. As the vehicles age, this deterioration CMR:422:10 Page 10f4 results in an increasing frequency of failures, and escalates vehicle. downtime. The increased downtime has the potential to compromise the Police Department's ability to respond to calls for service. There are currently six patrol vehicles at or near replacement mileage. These vehicles are listed in the table below: Unit Year Description Current Mileage 5224 2007 Ford Crown Victoria Sedan 91,552 5229 2005 Ford Crown Victoria Sedan 95,195 5234 2005 Ford Crown Victoria Sedan 94,199 5236 2005 Ford Crown Victoria Sedan 104,236 5237 2005 Ford Crown Victoria Sedan 99,445 5239 2005 Ford Crown Victoria Sedan 95,721 The anticipated in-service date of these new vehicles is May 2011. At that time all it is anticipated that the vehicles in thetable will have exceeded 100,000 miles. Audit of Vehicle Utilization and Replacement This purchase is being conducted with full consideration for the recent Audit of Vehicle Utilization and Replacement. The audit did not include a review of the City's inventory of emergency vehicles, and emergency vehicles are generally exempt from minimum utilization requirements. The vehicles being replaced through this purchase have, on average, greatly exceeded the minimum mileage accumulation of 2,500 miles annually. The Fleet Review Committee (FRC) reviewed and ultimately approved the replacem~nt of these vehicles on October 20, 2010, in accordance with the audit recommendations. The approval was based on: .• An examination of each vehicle's current usage; • An analysis of each vehicle's operating and replacement costs; • A comparison of the age, mileage, operating cost and performance of each vehicle with others in the class. '. An analysis of alternatives to ownership, such as mileage reimbursement; pooling/sharing; the reassignment of another underutilized vehicle, or renting. The FRC determined that there are no alternatives to outright replacement. All of these vehicles are used for specialized tasks, and are equipped with a considerable amount of emergency equipment that renders them unsuitable for any purpose other than law enforcement. This precludes their assignment to a motor pool, and rules out the use of a private vehicle with mileage reimbursement. They are each used by a single employee on a continuous daily basis, so there are no opportunities for sharing. There are no similar, underutilized vehicles available to use as replacements for these vehicles. Because these vehicles are used continuously throughout the year, renting them would not be a cost-effective option. Post-Delivery Outfitting Subsequent to ·delivery, each vehicle will need to be outfitted with standard and necessary emergency equipment; including lights, sirens, two-way radio equipment, mobile data terminal, prisoner cage, and nUmerous accessories. It is Equipment Management's intent to transfer as CMR:422:10 Page 2 of4 much equipment as possible from the existing vehicles into the new vehicles; however, some equipment may have to be purchased new to accommodate the change in model years. There is a significant amount of labor associated with the outfitting of police vehicles. This work will be contracted through a separate bid process, and is estimated to cost $47,400. BIDDING AND SELECTION PROCESS A Request for Quotation (RFQ) for police patrol vehicles was sent to seven vendors on September 14, 2010. Bids were received from seven qualified vendors on October 5, 2010, as listed on the attached bid summary (Attachment B). Bids ranged from a high of $206,987 to a low bid of$182,316. The purchase order amount is lower than the bid amount because staff determined that an order of six vehicles would be sufficient at this time. In addition, staff elected not to purchase an optional wiring package that was included in the bid total. Staffhas reviewed all bids submitted and recommends that the bid submitted by Downtown Ford Sales be accepted and that Downtown Ford Sales be declared the lowest responsible bidder. Staff has checked references supplied by the vendor for previous contracts and has found no sIgnificant complaints: ' RESOURCE IMPACT In fiscal years 2006-07 and 2007-08, Council approved the appropriation of funds to Vehicle Replacement Fund CIP projects VR-07800 and VR-08000 (Scheduled Vehicle and Equipment Replacements). The vehicle and replacements covered by these projects are complete, and there is $222,205 in remaining funding available between the two of them. The attached Budget Amendment Ordinance will provide for the transfer of funding from these CIP accounts into the current year's Scheduled Vehicle and Equipment Replacement CIP (VR-llOOO). This transaction has no impact on the Vehicle and Equipment Replacement Fund reserve balance. POLICY IMPLICATIONS Authorization of the contract does not represent any change to the existing policy. ENVIRONMENTAL REVIEW The vehicles being supplied are in conformance with all applicable emISSIons laws and regulations. Accordingly, this purchase is exempt from the California Environmental Quality Act under the CEQA guidelines (Section 15061). ATTACHMENTS Attachment A: Budget Amendment Ordinance Attachment B: Bid Summary PREPARED BY: Fleet Manager CMR:422:10 Page 3 of4 DEPARTMENT HEAD: CITY MANAGER APPROVAL: CMR:422:10 J.MIC ARTOR ~~~ t:. / JAMES KEENE 'r/CitY Manager Page 4 of4 Attachment A ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 2011 TO ESTABLISH CAPITAL IMPROVEMENT PROGRAM PROJECT NUMBER VR-11000, SCHEDULED VEHICLE AND EQUIPMENT REPLACEMENT, AND TRANSFER THE REMAINING UNUSED APPROPRIATION FROM CIP PROJECTS VR-07800 AND VR-08000 IN THE TOTAL AMOUNT OF $222,205 TO VR-11000 The Council of the City of Palo Alto does ordain as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III 'of the Charter of the City of Palo Alto, the Council on JUIle.28, 2010 .. did adopt a budget for fiscal year :a011; and B. City policy on vehicle and equipment replacement provides for the on-going replacement of City fleet vehicles and equipment. Specifically, Policy 4-1 prescribes a replacement interval for police patrol vehicles of four years or 85,000 miles. In an effort to reduce ongoing costs, Equipment Management has extended this replacement interval to 100,000 miles; and C. There are currently six patrol vehicles at or near replacement mileage. The Fleet Review Committee (FRC) approved the replacement of these vehicles on October 20, 2010, in accordance with the audit recommendations; and D. A Request for Quotation (RFQ) for police patrol vehicles was sent to seven vendors on September 14, 2010. Bids were received from seven qualified vendors on October 5, 2010 and Downtown Ford Sales was declared the lowest responsible bidder; and E. Subsequent to delivery, each vehicle will need to be outfitted with emergency equipment; including lights, sirens, two-way radio equipment, mobile data terminal, prisoner cage, and numerous accessories; and F. An estimated amount of $197,430 is needed to purchase and outfit the six police patrol vehicles. The funds needed by this project will be provided by a transfer of appropriations from existing but completed CIP projects as follows; and Project Number aud Name Amount of Transfer VR-07800 -Scheduled Vehicle and $43,700 Equipment Replacement (FY 2007-08) VR-08000 -Scheduled Vehicl~ and $178,505 Equipment Replacement (FY 2008-09) Total $222,205 G. City Council authorization is needed to amend the 2011 budget as hereinafter set forth. SECTION 2. Capital Improvement Program (CIP) Project Number VR-11000, Scheduled Vehicle and Equipment Replacement is hereby created. SECTION 3. The -sum of Two Hurtdred Twenty Two Thousand '!'wo Hundred Five Dollars ($222,205) is hereby appropriated to CIP Project Number VR-11000. SECTION 4. The appropriation for CIP Project VR-07800, Sch~duled Vehicle and Equipment Replacement is hereby reduced by Forty Three Thousand Seven Hundred Dollars ($43,700). SECTION 5. The appropriation for CIP Project VR-08000, Scheduled Vehicle and Equipment Replacement is hereby reduced by One Hundred Seventy Eight Thousand Fi ve Hundred Fi ve Dollars ($178,505). SECTION 6. The transactions above will have no impact on the Vehicle and Equipment Replacement Fund reserve balance. SECTION 7. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 8. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 9. The vehicles being purchased are in compliance with all applicable emissions laws and regulations. Accordingly, this purchase is exempt from ,the California Environmental Quality Act under the CEQA guidelines (Section 15061) . INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk APPROVED AS TO FORM: APPROVED: Mayor City Manager Director of Public Works Director of Administrative Services ATTACHMENT B City of Palo Alto Bid Summary Request for Ouotatig QUOTATION NUMBER: 138678 BID DUE DATE: October 5,2010 ! ITEM QTY UIM DESCRIPTION Downtown San Francisco Albany Ford Hansel Ford Folsom Wondries Theodore Ford Ford Lincoln Lake Ford Fleet Group Robins Ford 1. 7 Ea New, 2011 model Ford Crown $162,295.00 $162,638.00 $162,567.23 $162,645.00 $166,243.00 $167,706.00 $184,190.51 Victoria Police Interceptor 3. Sales Tax @ 9.25 $15,012.29 $15,044.02 $15,037.47 $15,044.67 $15,377.48 $15,512.81 $17,037.63 4. 7 Ea Tire tax $61.25 $61.25 $61.25 $61.25 $61.25 $61.25 $61.25 Total $177,368.54 $177,743.27 $177,665.95 $177,750.92 $181,681.73 $183,280.06 $201,289.39 .or