HomeMy WebLinkAboutItem 4.06 Purchase Police VehicleG~~.~ OF Dp~~ .
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i9;~;~~Z STAFFREPORT CITY CLERK
`c~,,,,~,~ ~ DUBLIN CITY COUNCIL File #^0~ 0^-^2. D^
DATE: February 15, 2011
TO: Honorable Mayor and City Council Members
FROM: Joni Fattillo, City Manager .
SUBJE . aiver 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. V
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.
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Submitted B ~
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Chief of Police
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Reviewed By
Administrative Services Director
Assistant City ~ nager
Page 1 of2 ITEM NO. `T•~O
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
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RESOLUTION NO. xx 11
A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF DUBLtN °
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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
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ATTAC H IVI E N T 1