TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Interim Finance Director
Gwen Eng, Purchasing Manager
Mike Grafton, Equipment Maintenance Supervisor
SUBJECT:Title
Approve Purchase of Three Replacement Motorcycles for the Police Department from Huntington Beach Honda in the Amount of $81,519.57; Waive Formal Bid Requirements Pursuant to Manhattan Beach Municipal Code Section 2.36.140 (Interim Finance Director Charelian).
a) APPROVE
b) WAIVE FORMAL BIDDING
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
a) waive formal bid requirements pursuant to Manhattan Beach Municipal Code Section 2.36.140 (waivers), and
b) approve the purchase of three replacement Police motorcycles from Huntington Beach Honda in the amount of $81,519.57.
Body
FISCAL IMPLICATIONS:
Funds totaling $96,646 are budgeted in the fiscal year (FY) 2017-2018 Fleet Management Fund for the purchase and equipping of two motorcycles. The third motorcycle was involved in a traffic accident, which resulted in the vehicle being considered a total loss. Replacement of this motorcycle was unanticipated in the current fiscal year. Risk Management is pursuing insurance recovery and any funds obtained will be deposited into the Fleet Fund.
The total cost for the three motorcycles is $81,519.57 and the remaining funds of $15,126.43 will be used to procure any communications or electronic equipment necessary for these vehicles.
BACKGROUND:
The fiscal year (FY) 2017-2018 budget includes funding for the replacement of fifteen vehicles in the City’s fleet that need to be replaced in order to maintain service levels, reduce repair costs and provide for cost-effective fleet operations.
DISCUSSION:
This purchase is for three replacement motorcycles for the Police Department. Two of the motorcycles referenced in this staff report are included in the approved Fiscal Year 2017-18 vehicle replacement list. The existing units are 2010 Honda police motorcycles with over 45,000 miles, and are at end of useful life. Replacement is based on several factors including age, reliability, maintenance/repair costs, and wear and tear on the engine and transmission. Police motorcycles are subject to repeated and severe service conditions due to rapid acceleration and braking that occurs through traffic law enforcement and emergency calls. Replacement at this time is the most cost-effective schedule before maintenance costs for these vehicles escalate.
The third motorcycle was involved in a traffic accident with damage so extensive that the motorcycle was considered a total loss. This has resulted in a shortage of police motorcycles and the need to purchase a replacement.
The City has standardized on Honda motorcycles for ease and consistency of repairs as well as rider safety. There is only one dealer in Southern California that has the capacity to “build-out” Honda motorcycles to meet law enforcement requirements. The last two requests for bids have resulted in only one response, that from Huntington Beach Honda. Consequently, staff does not believe that bidding this requirement will result in additional bids, or in a lower cost being obtained. As a result, staff recommends waiving formal bidding and awarding an order to Huntington Beach Honda.
The City’s last purchase of motorcycles was in December 2016 and the unit cost was $500 less. The difference is primarily due to a newer model year, LED lighting and updated equipment (more secure rifle rack) that will enhance safety for the motor officers. As a result, staff believes that the costing provided by Huntington Beach Honda remains consistent for the specialized motorcycles being purchased.
Staff recommends that the City Council award an order to Huntington Beach Honda for the purchase of three police motorcycles ($81,519.57). If this purchase is approved, the existing vehicles will be declared surplus and sent to auction for the highest attainable value or sold for scrap. The new vehicles will arrive in approximately 3 months.
PUBLIC OUTREACH/INTEREST:
No public outreach was performed.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.