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HomeMy WebLinkAbout4.06 Purchase Police VehicleOF DUB 04LIFOR�� STAFF REPORT CITY CLERK DUBLIN CITY COUNCIL File # ❑©©D❑-0 D❑ DATE: February 15, 2011 TO: Honorable Mayor and City Council Members FROM: Joni Pattillo, City Manager SUBJE giver of Competitive Bid Process and Authorization of Staff to Purchase Unmarked Police Vehicles Directly from Vendor Prepared By Stephen C. Brown, Lieutenant- City of Dublin Police Services EXECUTIVE SUMMARY: In order to ensure reliability and to minimize repair expense, the City routinely reviews fleet vehicles for potential replacement. Staff has scheduled two unmarked vehicles for replacement during the current fiscal year based upon general vehicle condition and history of maintenance and repair expenses. Staff obtained competitive pricing from multiple vendors for the purchase of the two unmarked vehicles, and the lowest cost presented was from Livermore Auto Group. FINANCIAL IMPACT: Adequate funding exists in the adopted Fiscal Year 2010-2011 Budget Internal Service Fund (Vehicle Replacement Fund) for the purchase of two unmarked vehicles including the emergency equipment installation costs. Emergency equipment will be purchased and installed separately. Any revenue generated from the auction of the retired vehicles is also deposited into that fund to offset future replacement costs. RECOMMENDATION: Staff recommends that the City Council adopt the resolution `:Authorizing Staff to Procure Two Police Vehicles from Livermore Auto Group and Declaring Vehicles Replaced as Surplus Property. The City Purchasing Ordinance provides the City Council with authority to waive the competitive bid process by a four -fifths [4/5] vote specifically for the purchase of vehicles. Submitted By Chief of Police ?ail 6?_j Reviewed By Administrative Services Director Reviewe By Assistant City anager Page 1 of 3 ITEM NO. 4-(Q_ is od ` V DESCRIPTION: The City's fleet includes six unmarked police vehicles that are used by Dublin Police Services investigations and administrative personnel. In order to assure reliability and to minimize repair expense, the City reviews replacement of,these vehicles for potential replacement after seven years of service. Based upon general vehicle condition and the age of units currently in the fleet, Staff has identified two existing unmarked vehicles for replacement during Fiscal Year 2010-2011: a 2001 Ford Taurus which has over 94,227 miles (Vehicle # 01-D31), and a 2004 Ford Taurus which has over 100,000 miles (Vehicle #04-D30). Sufficient funds have been reserved in the Internal Services Fund to replace the 2001 vehicle. The 2004 vehicle is being recommended for replacement prior to a full seven years of service (the normal amortization period) based on its high mileage and mechanical condition. A total of $3,573 internal service fund charges will not be recovered, and will be absorbed by the internal service fund, based on replacement prior to a full seven years of service. The City Municipal Code establishes the procedures for making purchases and requires that major purchases for items in excess of $20,000 be awarded by the City Council. The award is to be made based on formal sealed bids unless one of the allowed exceptions is utilized. The Municipal Code contains specific exceptions to the formal bid process when the purchase is for vehicles. The exceptions are shown below: Dublin Municipal Code: Section 2.36.050(A)(10) When another public agency has administered a competitive bidding process within the past two years for the same or substantially similar supplies, services or equipment; Section 2.36.050(A)(11) When City Council specifically waives the competitive bid process and authorizes Staff to negotiate the purchase of vehicles by a four-fifths (4/5) vote D.M.C. §2.36.050(a) 11). Staff requests that City Council authorize the purchase of two unmarked replacement vehicles based on negotiated pricing from Livermore Auto Group. Staff solicited informal quotes from several local dealers to determine pricing and availability Livermore Auto Group provided the lowest cost for the purchase of two new Taurus vehicles at $21,855.59 each for a total of $43,711.18. These vehicles are available for immediate purchase. The State of California currently does not have any active bids for passenger vehicles of this type. Staff has determined that other public agencies, including the City of Livermore, has solicited bids for the purchase of fleet vehicles within the past two years (June of 2009) and has purchased Ford Taurus's from Livermore Auto Group as a result of those bids. The competitive pricing obtained is shown in the Table below: COMPARISON PRICING 2011 FORD TAURUS FWD SE (Includes Purchase Price; Sales Tax, Documentation Fee, and Tire Fee) DEALER Cost Per Vehicle Livermore Auto Grou $ 21,855.59 The San Leandro Ford Store $ 23,629.64 Walnut Creek Ford $ 22,367.34 Page 2 of 3 The current Budget contains funding in the Internal ~ervice - Vehicle Replacement Fund to purchase two vehicles to replace the current 2001 Ford Taurus and the 2004 Ford Taurus that are currently in service in the Police fleet. Upon delivery of the vehicles, Staff will arrange for thern to be equipped wi#h emergency police equipment. At this time Staff is also requesting City Council authorization to dispose of the 2001 Taurus and the 2004 Taurus, once the new units are in service. The retired vefiicles will be transferred to a professional auction company for sale. Posting of the auction will be conducted in accordance with standard procedure. Staff prepared a Resolution (Attachment 1) which will record the two actions being requested. The first is authorization to purchase the vehicles through direct negotiation instead of using a formal bid. The City's purchasing regulations require approval of this process by .a four-fifths vote. The second element addressed by the Resolution is the authorization for the Purchasing Agent to dispose of the 2001 Ford Taurus and the 2004 Ford Taurus at a public auction, once the replacement vehicles are in service. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None ATTACHMENTS: 1. Resolution Authorizing Staff to Procure Two Police Vehicles from Livermore Auto Group and Declaring Vehicles Replaced as Surplus Property Page 3 of 3 _ ~ RESOLUTION NO. xx 11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLtN ° ********* AUTHORIZING STAFF TO PROCURE TWO POLICE VEHICLES FROM LIVERMORE AUTO GROUP AIVD TO DISPOSE OF VEHICLES REPLACED USING PUBLIC AUCTION SERVICES WHEREAS, the City requires the purchase of unmarked vehicles for Dublin Police Services operations; and WHEREAS, in the Fiscal Year 2010/2011 Budget includes funding for the replacement of two unmarked vehicles based upon the age of the vehicle and its condition; and Whereas, the vehicles scheduled to be replaced are City 1D # D31 a 2001 Ford Taurus and City ID # D30 a 2004 Taurus; and WHEREAS, Section 2.36.050(A)(11) of the Dublin Municipal Code allows for exceptions to the typical public bidding process when the City Council specifically waives the competitive bid process and authorizes staff to negotiate the purchase of vehicles by a four-fifths vote; and WHEREAS, Section 2.36.050(A)(11) of the Dublin Municipal Code provides for the purchasing agent to recommend the sale or disposal of all supplies and equipment which cannot be used by the city, or which have become unsuitable for city use; and WHEREAS, as presented in a Staff Report on February 15, 2011 Staff has obtained competitive pricing from three dealers for comparably equipped vehicles and it is recommended that the City Council authorize the purchase from Livermore Auto Group at a cost of $21,856 per vehicle as allowed under Chapter 2.36 of the Dublin Municipal Code; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby authorizes the City Manager as Purchasing Agent to procure in Fiscal Year 2010-2011 two replacement unmarked Police vehicles from Livermore Auto Group as described to the City Council on February 15, 2011. BE IT FURTHER RESOLVED that_ upon placing the new vehicles in service the Purchasing Agent is herby authorized to make al1 necessary arrangements for the disposal of Vehicle #D31 a 2001 Ford Taurus and #D30 a 2004 Taurus at public auction, including but not limited to agreements for auction services. PASSED, APPROVED AND ADOPTED this 15th day of February 2011, by the following vote: AYES: NOES: . ABSENT: ABSTAIN: Mayor ATTEST: City Clerk /D~' ~~~~~~~. ATTAC H IVI E N T 1