Agenda Item Wording:
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Authorize City staff to initiate the Measure N amendment process to appropriate $174,200 and advance the purchase of one (1) Ford Police Interceptor for from FY 24/25 and replace a wrecked Measure N funded Dodge Charger; and appropriate $14,200 to address the budget shortfall for FY 23/24 vehicle purchases.
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Deadline for Action: 8/21/2023
Submitting Department: Police Department
Contact Name and Phone Number: Chief Jason Salazar, ext. 4215, jason.salazar@visalia.city <mailto:jason.salazar@visalia.city> ; Captain Dan Ford, ext. XXX, Daniel.ford@visalia.city <mailto:Daniel.ford@visalia.city> ; Financial Analyst Liz Ybarra, ext.4250, liz.ybarra@visalia.city <mailto:liz.ybarra@visalia.city>
Department Recommendation:
Authorize City staff to initiate the Measure N amendment process to appropriate $174,200 and advance the purchase of the one (1) Ford Police Interceptor for FY 24/25 and purchase one (1) Ford Police Interceptor to replace a Measure N funded Dodge Charger, that was wrecked and totaled by a drunk driver. In addition staff is requesting to appropriate an additional $14,200 to address the budget shortfall for FY 23/24 vehicle purchases.
Summary:
On June 19th, 2023, City Council approved an amendment to Measure N for the purchase of two (2) Dodge Charger patrol vehicles that were originally budgeted in FY 21/22 and 22/23. The vehicles had not been purchased in previous years due to low inventory and vehicle cost increases. This approval was provided after staff had presented to the Measure N Committee and conducted two Public Hearings.
Since presenting and receiving approval to increase the allocation, staff were notified that Dodge was no longer going to produce gas-powered Dodge Chargers in 2024, and due to high demand, there is no 2023 models available for purchase. Staff have since identified the Ford Police Interceptor (patrol rated Ford Explorer) as the only suitable replacement for the Dodge Charger. The cost of the Explorer is more than the recently adjusted budget and will require an additional $14,200 for the purchase of the two vehicles currently in the budget. These two vehicles are part of the contract award that is also being requested tonight. Due to Measure N budget amendment requirements, the funding must go through a separate process. In addition,staff is requesting to advance the purchase of one (1) Ford Police Interceptor from FY24/25 (outlined in the Measure N Plan) and replace an existing Measure N 2019 Dodge Charger that was wrecked due to a drunk driver. The advance purchase is due to an anticipated supply shortage.
Background Discussion:
In 2010, the Department began using the Dodge Charger as the standard patrol vehicle. The Charger was a replacement for the discontinued Ford Crown Victoria Police Interceptor and has been in use by the Department since that time. The Department was notified in the spring of 2023 that Dodge would discontinue production of the Charger in 2024; however, Dodge indicated at that time they would still be able to fulfill orders made through the 23/24 budget cycle. In July of 2023, due to unprecedented demand, the Department was notified that all available Chargers had been purchased prior to our anticipated order date in September-October 2023. This unanticipated circumstance has resulted in numerous police departments having to identify a suitable replacement option for the Dodge Charger, while significantly increasing demand for the remaining gas-powered patrol vehicle options. This increased demand will likely last several years as organizations and the automotive industry adapt to EV legislation.
Staff analyzed several options for replacement of the Dodge Charger and determined that Ford Police Interceptor would be the best option. The Police Interceptor is very similar to the Dodge Charger in performance, maintenance, and overall cost (including estimated purchase, upfit, fuel, and maintenance cost. Overall, the Police Interceptor is the cheapest alternative to the Dodge Charger.
Despite being the cheapest alternative, the Police Interceptor is still more expensive than the Dodge Charger. Using FY 22/23 pricing models, the Police Interceptor was approximately $4,500 more than the Dodge Charger. Although the actual cost has not been released by Ford, staff are estimating a 5-7% cost increase. The primary reason for this increase is related to the increased demand for gas-powered vehicles despite limited options and supply. Based on research, staff estimate a total cost of $87,071 per vehicle. This includes a base price of $53,500; upfit cost of $26,750; and tax of $6,821.
Staff believe that due to the increasing demand and limited supply, as well as manufacturing trends in the automotive industry that are directed towards production of EV rated vehicles, the cost of patrol vehicles will continue to increase moving forward. Additionally, limited supply will likely make it more difficult for vendors to fulfill orders moving forward. In speaking with the vendor, staff believe that there will be sufficient supply to meet the needs of the City this year but will become more difficult in subsequent years. The Department experienced a similar supply shortage in FY 21/22 when supplies were limited due to COVID, and vendors were unable to provide any of the vehicles ordered by the Department.
Due to the anticipated supply shortage and vehicle change, staff is requesting to advance one Measure N patrol vehicle from FY 24/25 (outlined in the plan) In addition,, staff is requesting to replace one Measure N Vehicle that was wrecked during a collision with a drunk driver. This vehicle, which was totaled because of the collision, was purchased in 2019 and was not scheduled for replacement until FY 29/30.
Staff is also requesting to increase the Measure N budget for two vehicles currently budgeted in FY 23/24 by $14,200. An increased allocation for these vehicles was previously approved by Council after presenting to the Measure Committee and receiving their recommendation to increase the allocation, and conducting two Public Hearings
In addition to this request, staff is requesting on tonight’s Council Agenda the authorization to purchase thirty-two (32) Ford Police Interceptors. If the Measure N process is approved, the two additional Measure N vehicles will be added to the contract being awarded tonight, bringing the total contract to 34 patrol vehicles.
Staff is recommending to start the Measure N process to amend the budget as outlined which includes directing staff to receive comment from the Measure N Committee, conduct two public hearings, and final approval from Council.
Fiscal Impact:
Staff is requesting an additional appropriation of $14,200 to address a budget shortfall to purchase two (2) Measure N Ford Police Interceptors currently budgeted; and appropriate $174,200 for the advance purchase of 1 Measure N Ford Police Interceptors from FY 24/25 and replace 1 wrecked patrol vehicle.
Prior Council Action: June 19, 2023: Council approved motion to amend MN spending plan.
Other: N/A
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
Authorize City staff to initiate the Measure N amendment process to appropriate $174,200 and advance the purchase of one (1) Ford Police Interceptor for from FY 24/25 and replace a wrecked Measure N funded Dodge Charger; and appropriate $14,200 to address the budget shortfall for FY 23/24 vehicle purchases.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: N/A