Agenda Item Wording:
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Authorize and award a purchase contract with National Auto Fleet Group located in Watsonville, CA, for a not to exceed amount of $3,040,000 to purchase thirty-two (32) 2024 Police patrol vehicles and appropriate additional funds of $233,200 from various funds.
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Deadline for Action: 10/16/2023
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. 4151, 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 and award a purchase with National Auto Fleet Group located in Watsonville, CA in the amount not to exceed $3,040,000 to purchase thirty-two (32) 2024 marked patrol vehicles and appropriate additional funds of $233,200 from various funds outlined in the report. This purchase is utilizing the National Sourcewell Master Vehicle contract 091521-NAF.
Summary:
The Department annually replaces vehicles as allocated in the budget and in accordance with the City’s Vehicle Policy. The Police Department currently has ten (10) patrol vehicles budgeted for replacement in the Vehicle Replacement Fund and two (2) in Measure N. Staff is also recommending advancing the purchase of twenty (20) patrol vehicles from FY24/25, bringing the total purchase to thirty-two (32).
In addition to the thirty-two (32) vehicles, staff are currently working through the Measure N process for the purchase of two (2) Measure N patrol vehicles. If approved, this would replace a total of thirty-four (34) vehicles. These Measure N vehicles would be an amendment to this contract once approved.
Staff previously prepared a staff report for the purchase of the above-listed vehicles. Staff’s intention at that time was to purchase Ford Police Interceptors; however, due to circumstances currently affecting the automotive industry as a whole, Ford has not shown any indication of opening an ordering window. As a result, Staff have determined that the Dodge Durango provides city staff with the highest likelihood to both order and receive our full request. Despite our current assessment, staff is requesting to increase funding per car to $95,000 to ensure all acceptable options available to the Department should additional changes affect the automotive industry.
Background Discussion:
On August 21, 2023, City Council unanimously approval the purchase of twelve (12) Ford Police Interceptors for FY23/24 and to advance the purchase of twenty (20) Ford Police Interceptors for FY24/25. As described in the previous staff report for that Council session (attached to this report for reference), the precarious nature of the automobile industry is placing an unprecedented demand for patrol vehicles despite limited supplies. At the time of that hearing, based on the information staff had and the estimated projections for ordering windows, staff believed that the best option would be the Ford Police Interceptor. Since that time, the United Auto Workers (UAW) began an incremental strike that has led to an increase in parts and assembly plant closures. As a result, the ordering window has not opened for Ford and there is a high likelihood of significant delays before the ordering window opens, if it does at all in the next year.
Law enforcement organizations around the State and Country are feeling the effects of this crisis. Organizations are having orders cancelled and at least one California city has declared a state of emergency to bypass traditional bidding process in an effort to secure an order.
Staff have been working with our existing vendors to research solutions to this problem. Dodge (Stellantis) elected to open their ordering window despite the issues related to the strike and as a result, staff are currently recommending the purchase of Dodge Durango Pursuit. Because we have been a longtime client of Dodge (through our purchases of the Dodge Charger), our orders are prioritized over new customers; increasing the likelihood that our order will be accepted and fulfilled. The Dodge Durango Pursuit performs consistent with the Ford Explorer and in discussions Fleet staff, there is no concern integrating this vehicle option. Additionally, the costs projections for this option are consistent with previous projections for the Ford Police Interceptor. Unfortunately, Dodge does not provide a hybrid option for patrol vehicles, and staff have converted the previous request for two (2) hybrid vehicles into two (2) gas-powered options.
Although staff are confident that Dodge will be able to receive and fulfill our requested purchase, staff is requesting authorization from City Council to purchase marked patrol vehicles at a cost up to $95,000 per vehicle, with a total cost not to exceed $3,040,000. This authorization request is due to the dynamic nature of the automotive industry and serves as safety measure should our projections fall short or other external conditions impact our current situation. It will also provide staff with the flexibility to make immediate decisions and prevent the city from having to consider more dramatic means to resolving the ordering crisis facing the law enforcement industry. Despite this request, staff will continue to pursue the costs previously provided to Council.
Based on the above information, staff is requesting to enter into a contract with National Auto Fleet Group located in Watsonville for an amount not to exceed $3,040,000 for Dodge Durango. Due to the timing of placing these orders, staff is also requesting authority to enter into an agreement with National Auto Fleet Group for Ford Explorers if the Dodge Durango is not able to be purchased for the same not to exceed amount. If both options are not available, staff will return with other options.
Fiscal Impact:
At the August 2023 Council meeting, staff had an average estimated base cost for each gas patrol vehicle of $87,250. This cost included upfitting which averaged $28,000. The cost varies depending on the patrol vehicle type (K-9 versus regular patrol)
Since Measure N budget amendments need to go through a separate process, staff is requesting to increase the budget for only the vehicles listed in the General Fund Vehicle Replacement Fund ($177,900) and Measure T ($55,300). Measure N budget amendment is on a separate Council item for discussion.
The total not to exceed of $3,040,000 will be funded by the following funds:
• General Fund Vehicle Replacement $ 2,185,000
• Measure T Vehicle Replacement Fund $ 665,000
• Measure N Vehicle Replacement Fund $ 190,000
Prior Council Action: N/A
Other: N/A
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
Award a purchase contract with National Auto Fleet Group located in Watsonville, CA, for an amount not to exceed $3,040,000 to purchase a thirty-two (32) 2024 marked patrol vehicles and appropriate $233,200 from various funds outlined in the report.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: August 21, 2023, approved staff report.