TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Mike Grafton, Equipment Maintenance Supervisor
Mario Hernandez, Purchasing Supervisor
SUBJECT:Title
Consider Awarding Bid No. 1290-23 to McGovern Commercial for the Purchase of Seven Patrol Vehicles for the Police Department in the Amount of $289,691 and Approving an Additional Appropriation of $178,043 from the Fleet Management Fund (Finance Director Charelian).
A) APPROVE
B) APPROPRIATE FUNDS
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
a) Award Bid No. 1290-23 to McGovern Commercial for the purchase of seven Ford Interceptor Utility patrol vehicles for the Police Department in the amount of $289,691; and
b) Appropriate an additional $178,043 from the Fleet Management Fund.
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FISCAL IMPLICATIONS:
The total cost for the purchasing and outfitting seven Ford Interceptor Utility patrol vehicles is $289,691 and $130,000 respectively. Funds totaling $241,648 are budgeted in the Fiscal Year (FY) 2022-2023 Fleet Management Fund for the purchase and outfitting of these vehicles. To accommodate the cost of purchasing and outfitting additional vehicles, an appropriation of $178,043 is required from the unreserved Fleet Management Fund balance.
BACKGROUND:
McGovern Commercial has seven Ford Interceptors in stock and will ship them within three weeks of receiving a purchase order from the City. Three Ford Interceptor Utility patrol vehicles are budgeted for replacement during this current fiscal year (FY 2022-2023). In FY 2021-2022 a purchase order for one patrol vehicle was issued, but as the vendor has not been able to fulfill the order, the purchase will be canceled and be included as part of this order. With delays in vehicle production and continued chip shortages relating to the COVID-19 pandemic, staff intends to advance the purchase of three patrol vehicles currently scheduled for replacement in FY 2023-2024 in order to utilize the vendor’s current stock rather than risk future delays to replacement.
Currently, it is commonplace for vehicle manufacturers to submit quotes for vehicles that have not been built yet, close vehicle ordering windows prematurely, and have lead times of over 12 months. With this low supply of vehicles, it is rare to find a dealer with one vehicle and City staff have managed to find seven available vehicles through one dealer. The City extended the search to the East Coast, which is where McGovern Commercial is headquartered. McGovern typically supplies vehicles to much larger municipalities and government agencies and as such is able to meet our needs of seven Ford Interceptors.
DISCUSSION:
This purchase is for seven replacement vehicles for the Police Department. The vehicles proposed to be replaced are over nine years old, with an average mileage of 100,000, and have reached the end of useful serviceability for the department’s purposes. These vehicles are used by the patrol officers. The selection of the replacement vehicle has been approved by the using department and the City’s Equipment Maintenance Supervisor.
The Request for Bids was posted on the City’s website, as well as OpenGov, a public bid notification board. A total of two bid responses were received for this vehicle. The attached bid comparison lists the aggregate price, including sales tax, fees and payment discounts (the lowest bid is indicated in bold font).
Based on this bid, staff recommends that the City Council award Bid No. 1290-23 to the lowest responsive bidder, McGovern Commercial, for the purchase of seven Ford Interceptor Utility patrol vehicle in the amount of $289,691. The new vehicles will arrive in approximately one month.
PUBLIC OUTREACH:
This bid was advertised on the City’s website, as well as OpenGov, a public bid notification board.
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 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.
ATTACHMENT:
1. Bid No. 1290-23 Comparison for Patrol Vehicle