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Home My WebLink About5.5 Delegation of Authority to the City Manager to Purchase Fleet Vehicles Exceeding $45,000sus DUBLIN STAFF REPORT CITY COUNCIL Agenda Item 5.5 DATE: September 17, 2024 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SU B.ECT : Delegation of Authority to the City Manager to Purchase Fleet Vehicles Exceeding $45,000 Prepared by: Jordan Foss, Management Analyst 11 EXECUTIVE SUMMARY: The City Council will consider delegating purchasing authority of fleet vehicles exceeding $45,000 to the City Manager for the remainder of Fiscal Year 2024-25. STAFF RECOMMENDATION: Adopt the Resolution Delegating Authority to the City Manager to Purchase Fleet Vehicles Exceeding $45,000 for Fiscal Year 2024-25. FINANCIAL IMPACT: Replacement vehicles will be covered by the Fiscal Year 2024-25 Internal Service Fund (ISF) Budget. Any revenue generated from the auction of the retired vehicles will be deposited into the ISF to offset future replacement costs. Authority for the purchase of non -replacement vehicles will be sought either through the annual budgeting process or at a City Council meeting during the year. DESCRIPTION: Background The City's fleet is made up of general use, maintenance, police, and fire vehicles. Public Works manages the general use and maintenance fleet, made up of nine vehicles which are either hybrid or electric. Dublin Police Services manages a fleet of 38 police vehicles, including 13 unmarked vehicles and 25 marked vehicles for patrol, crime prevention, and school resource officers. Alameda County Fire Department manages a fleet of 11 fire vehicles, including seven apparatus (two of which are reserve units), two patrol vehicles, and two general use vehicles. The City Manager recently established a Fleet Life Cycle/Replacement Administrative Policy (Attachment 2) that identifies the metrics to be used when considering vehicle replacement (age, Page 1 of 2 1 mileage, and repair/maintenance data). For example, Police vehicles are now reviewed after four years (it was previously three years) or 75,000 miles, and general fleet vehicles are reviewed at six years or 75,000 miles. Generally, Staff reviews the vehicle inventory each year and budgets for anticipated replacements in the Internal Service Fund. Police Services budgets for and replaces between six and 10 police vehicles each year on average; Public Works and Fire replace vehicles much more infrequently, as vehicle usage is much lower, and maintenance needs are not as prevalent. Currently, Public Works and Fire have no active vehicles that are over the mileage or age benchmark set forth in the Fleet Life Cycle/Replacement Policy. Staff Request Recent purchases of replacement vehicles and equipment have exceeded the City Manager's purchasing authority of $45,000, requiring Staff to seek City Council approval. However, these transactions have been hindered by supply chain shortages and vehicle and equipment availability at various dealerships. By the time Staff obtains City Council approval, the vehicles are often no longer available, requiring Staff to begin the procurement process again. For this reason, Staff is seeking approval from the City Council to delegate purchasing authority to the City Manager for vehicles and equipment over $45,000 in accordance with the planned and budgeted vehicle replacement schedule. Scheduled purchases for Fiscal Year 2024-25 include the replacement of four marked police vehicles and two police motorcycles. The model and make of the replacement vehicles are subject to availability. It is anticipated the replacement motorcycles will be procured from Harley Davidson for consistency purposes. Staff will provide a report to the City Council on the replaced vehicles as well as the purchased vehicles once procurement has been completed. Staff is also requesting that the City Council authorize the disposal of any replaced vehicles by transferring them to a professional auction company for sale. Any revenue generated from the auction of the retired vehicles will be deposited into the fund to offset future replacement costs. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) Resolution Delegating Authority to the City Manager to Purchase Fleet Vehicles Exceeding $45,000 for Fiscal Year 2024-25 2) Administrative Policy 3.6 - Fleet Life Cycle/Replacement Page 2 of 2 2 Attachment I RESOLUTION NO. xx — 24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN DELEGATING AUTHORITY TO THE CITY MANAGER TO PURCHASE FLEET VEHICLES EXCEEDING $45,000 FOR FISCAL YEAR 2024-25 WHEREAS, the City of Dublin's fleet is made up of general use, maintenance, police, and fire vehicles; and WHEREAS, Public Works manages a fleet of nine general use and maintenance vehicles, Dublin Police Services manages a fleet of 38 police vehicles, including 13 unmarked vehicles, and 25 marked vehicles for patrol, crime prevention, and school resource officers, and Alameda County Fire Department manages a fleet of 11 fire vehicles, including seven apparatus, two patrol vehicles, and two general use vehicles; and WHEREAS, to ensure reliability and to minimize repair expenses, the City reviews these vehicles in accordance with the City's Fleet Life Cycle/Replacement Policy for replacement with the most appropriate vehicles to maintain City operations; and WHEREAS, scheduled purchases for Fiscal Year 2024-25 include the replacement of four marked police vehicles and two police motorcycles; and WHEREAS, due to increased costs, it is expected the procurement of new and replacement vehicles will exceed the City Manager's purchasing limit of $45,000; and WHEREAS, due to supply chain shortages and reduced vehicle and equipment availability at various dealerships, the purchasing process has become time sensitive; and WHEREAS, with the City Council's delegation of authority to the City Manager to make vehicle purchases over $45,000, Staff will be able to work with dealerships to quickly purchase the appropriate vehicles as they are available; and WHEREAS, such purchases will be made in accordance with the vehicle replacement schedule and the availability of funds in the Internal Service Fund budget for Fiscal Year 2024- 25; and WHEREAS, Staff will provide a report to the City Council detailing the vehicles replaced and purchased once the procurement process is completed. NOW, THEREFORE, BE IT RESOLVED that City Council approves delegation of authority to the City Manager to purchase fleet vehicles exceeding $45,000 for Fiscal Year 2024-25. BE IT FURTHER RESOLVED that upon placing the new vehicles in service, the replaced vehicles are declared surplus property and the City Manager and/or her designee shall be authorized to arrange for their auction in accordance with state and local laws and regulations. Reso. No. XX-24, Item X.X, Adopted 09/17/2024 Page 1 of 2 3 PASSED, APPROVED AND ADOPTED this 17th day of September 2024, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk Reso. No. XX-24, Item X.X, Adopted XX/XX/2024 Page 2 of 2 4 Attachment 2 City of Dublin, CA Administrative Policy 3.6 Fleet Replacement 3.6—Fleet Life Cycle/Replacement 1. Purpose: a. This policy's goal is to establish replacement metrics for the classes of vehicle by analyzing age, mileage, repair/maintenance data to be compared to depreciated value, and to provide direction to departments on replacement policy, scheduling, and funding procedures. 2. General: a. Service life is the amount of time a vehicle is capable of rendering service. Service life may be quite lengthy if a vehicle receives adequate maintenance and worn components are replaced. There is however a fatigue point for mechanical parts and structures that must be accounted for so as not to affect safety. b. Technological life is the relative decline in productivity of a unit when compared to a newer model. Technology advancements affect fuel usage and greenhouse gas emissions. c. Economic life is the length of time that a vehicles cost is at a minimum. As the age and mileage of a vehicle increase the maintenance and operating costs increase also. 3. Replacement Schedule: a. Vehicles become candidates for replacement when they reach either the age or the mileage replacement criteria, whichever comes first, as listed in the table below. The following chart will form the basis of a replacement cycle or schedule. This chart was developed using the City's current replacement standards, but also references the CA Department of General Services' Replacement Schedule Criteria, as well as research on other local agencies' programs. Specialized vehicles, such as undercover police vehicles, Fire Trucks, and Fire Engines, may be retained for additional life as a reserve unit but must be evaluated annually. Vehicle Type Age of Vehicle (in months) Vehicle Mileage Internal Combustion Engine Vehicles Law Enforcement Sedans (Patrol) 48 75,000 Law Enforcement SUVs (Patrol) 48 75,000 Motorcycles (Patrol) 60 75,000 Sedans 72 75,000 Pickup Trucks 72 75,000 Sport Utility Vehicles 72 75,000 Mini Vans 72 75,000 Cargo Vans 72 75,000 Fire Trucks 180 100,000 Fire Engines 180 100,000 Hybrid Vehicles Sedans 84 85,000 Pickup Trucks 84 85,000 Sport Utility Vehicles 84 85,000 Mini Vans 84 85,000 Cargo Vans 84 85,000 Original Effective Date: 9/9/2024 Page 1 of 4 5 City of Dublin, CA Administrative Policy 3.6 Fleet Replacement Electric (EV) Vehicles Motorcycles (Patrol) 60 75,000 Sedans 120 100,000 Pickup Trucks 120 100,000 Sport Utility Vehicles 120 100,000 Mini Vans 120 100,000 Cargo Vans 120 100,000 4. Vehicle Evaluations a. When a vehicle has met its expected life, the Department Fleet Manager utilizes an evaluation sheet that reports the overall condition of the vehicle. The evaluation data that is collected includes the overall visual and mechanical condition of the vehicle, total lifespan costs of repair, preventative maintenance costs, and lifespan fuel costs. b. The vehicle is evaluated and tracked on a scoring system. Excellent condition items are given a score of 5 and a score of 1 would indicate poor condition. Any vehicle that has an overall score of 21 or less points, replacement is recommended. If the vehicle has a score above the 21 points and other contributing factors are evaluated, the vehicle lifespan may be extended. c. In addition to the scoring system, there are other weighing factors such as maintenance repair costs, preventative maintenance costs and fuel costs based on the lifespan of the vehicle. As a vehicle ages, maintenance and repair costs increase. This data is evaluated and factored in on a case -by -case basis. d. Environment and sustainability outcomes are factored into evaluations (including measures outlined in the City's Climate Action Plan). At both Federal and State levels, emission standards for fleets have affected the future planning and purchases of vehicles. Changing emission standards may require vehicle replacement. e. Once the Department Fleet Manager has completed the evaluation, the Department Director and/or City Manager will be included in further discussions and debriefed on findings and recommendations moving forward. It may be necessary to evaluate the vehicle based on personnel changes, equipment needs, etc. 5. Procedure a. In January of each Fiscal Year, the Finance Department will distribute a fleet inventory list to Departments managing fleet vehicles (currently Fire Services & Prevention, Dublin Police Services, and Public Works). Departments will evaluate the fleet inventory list and prioritize vehicle replacement based upon this policy and with regards to budget building for the next Fiscal Year. The prioritized list will be shared with using departments to determine the correct replacement schedule as well as correct vehicle type and total vehicle inventory. Departments shall request budget for any vehicles to be replaced in or added to the fleet for the next Fiscal Year. b. Where operationally possible alternatively fueled vehicles will replace conventionally fueled vehicles. Alternative options include Compressed Natural Gas (CNG), Hybrid Electric Vehicles (HEV), Plug in Hybrid Electric (PEHV) and all Electric Vehicles (EV). The Original Effective Date: 9/9/2024 Page 2 of 4 6 City of Dublin, CA Administrative Policy 3.6 Fleet Replacement prioritized list of replacement vehicles will be taken to City Council annually for approval, pending available funding in the Vehicle Replacement Fund. Replacement Specifications a. Once a vehicle has been met all prerequisites for replacement, the Department Fleet Manager will discuss the vehicle replacement with Department/Division Supervisors to verify that use and type of vehicle has not changed. Replacement policy of fleet is "like for like." If there is a need to purchase a replacement vehicle that differs in class from previous vehicle, discussion will be carried out case -by -case. Deviations from a "like for like" replacement on vehicle classification type (i.e. sedan for sedan) will require Director and/or City Manager approval. New Fleet Replacement Procedure a. Department Fleet Manager will receive units from vendor, verify that vehicle that arrived matches what was specified by Department/ Division b. Install or retrofit all necessary equipment needed based on vehicle use c. Apply City logos and all applicable decals d. Add asset to insurance pool agency e. Inform Department/Division of arrival of unit f. Obtain vehicle number and license tag number (if required) and provide to Finance for Asset Tracking g. Keys and necessary associated documents will be provided to the Department/Division personnel h. Department/Division will surrender the replaced vehicle to the Department Fleet Manager prior to taking possession of new vehicle 6. Summary a. This policy is to be used as guideline for cost effective vehicle replacement cycles. Other factors such available funding, incidents/accidents, or vehicle service level agreements may influence replacements. Increases in public health and safety measures requiring additional vehicles (New Needs) will also influence vehicle replacement schedules. In these cases, a vehicle may need to be retained past its life cycle, however these vehicles must be relinquished at the first opportunity in order to reduce operating costs and allow for adequate delivery of City services. 7. References a. CA GSA Replacement Schedule Criteria (https://www.dgs.ca.gov/Resources/SAM/TOC/4100/4126) b. Related Administrative Policies i. Vehicle Use Policy ii. Collision Investigation Policy iii. Safe Use of Cellular & Other Wireless Devices iv. Green Fleet Original Effective Date: 9/9/2024 Page 3 of 4 7 City of Dublin, CA Administrative Policy 3.6 Fleet Replacement Approved: ,2.)54,..t.,_i,Sn.,:t;6 Linda Smith, City Manager Summary of Revisions 2024--Adopted Original Effective Date: 9/9/2024 Page 4 of 4 8 ID # Div # Year Make City of Dublin Vehicle Evaluation Form Model III *Os DUBLIN CALIFORNIA Age of Vehicle Mileage/Hours LTD Repairs LTD PM Services LTD Fuel Cost Overall Condition Summary: Engine Transmission Axle(s) Suspension / Steering Interior and Electrical Exterior / Body Aux Engine / Components Total Score Description Score (Scale 5=Excellent - 1=Poor) Expected Life Span Original Purchase Cost Total Life to Date Operating Cost Est. Reconditioning Cost Est. Auction Value $ (Recommend replacement at 21 or lower) Recommended Action: Department Fleet Manager Date cs