REQUEST FOR CITY COUNCIL ACTION
DATE: 02/21/2024
TO: Honorable Mayor and City Council Members
FROM: Public Works Department
SUBJECT:
Title
AUTHORIZE THE PURCHASE OF TWENTY (20) NEW FORD EXPLORERS FROM PFVT MOTORS INC. FOR THE POLICE DEPARTMENT
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EXECUTIVE SUMMARY:
This staff report asks the City Council to authorize the purchase of twenty (20) new vehicles in the amount of $1,312,352 from PFVT Motors, Inc. for the Police Department. This will replace the aging vehicles that have passed their life cycle.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Authorize an Exception to Competitive Bidding pursuant to Corona Municipal Code Section 3.08.140(C) that competitive bidding has been satisfied based upon the reasons provided in “Basis for Determination of Competitive Bidding” with PFVT Motors Inc., for the purchase of twenty (20) new vehicles for the Police Department in the amount of $1,312,352.
b. Authorize the City Manager, or his designee, to issue a purchase order to PFVT Motors Inc. in the amount of $1,312,352.
c. Authorize an appropriation in the amount of $370,012 from the Fleet Replacement Fund 684 to the Operating & Maintenance Vehicle Procurement Project No. 68341 for the purchase of twenty (20) vehicles for the Police Department and upfitting.
d. Authorize a cash transfer in the amount of $370,012 from the General Fund 110 to the Vehicle Replacement Fund 684 to offset the additional costs of the twenty vehicles and upfitting.
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BACKGROUND & HISTORY:
The City of Corona Police Department’s mission is to ensure the safety and security of the public through strong community partnerships and excellence in policing. The Police Department (PD) aims to achieve this venture by remaining proactive in community partnerships, law enforcement, training, and commitment to excel as an organization. Performing these functions, essential to public safety, relies upon a vehicle fleet that is modern, up-to-date, dependable, and efficient.
The Police Department works in conjunction with Fleet Services (Fleet) through regularly scheduled meetings and consistent communication to ensure vehicles are both safe and well maintained while maximizing the in-service availability of these units. Replacement is planned both proactively and per Administrative Policy No. 09100.508. As the current fiscal year progressed, analysis revealed twenty (20) Ford Police Interceptor Explorers within the Police Department fleet, were eligible for replacement due to being past their life cycle. The patrol units in question have exceeded 100,000 miles and 13,000 engine hours.
While aiming to keep the current fleet of patrol units safely operating and available for service, staff has observed significant effects of the high service hours and high mileage accrued by these vehicles in the form of increased vehicle downtime needed for extensive repairs, the growing number of out-of-service criteria units requiring extensive repairs, and increased parts expenditure required to meet high mileage vehicle repair needs. This has made replacing older vehicles a top priority for PD and Fleet.
Delays in vehicle production and the decreased order availability for Ford Police Interceptor Explorers (“Ford Interceptors”) have been ongoing since the COVID-19 Pandemic and recent United Automobile, Aerospace, and Agriculture Implement Workers of America (UAW) strike. Police departments across the country have been left scrambling trying to find replacement vehicles. Departments are stuck piecemealing their fleets together with Dodges, Chevrolets, other model Fords, and similar vehicles. Many of these other options are still difficult to obtain and cost more than the Ford Explorers.
In October 2022, the PD had an order for six Ford Interceptors that were approved on the Fiscal Year 2022 Vehicle Replacement List. However, the vehicles were canceled and never reordered. Since that time, Fleet has been unable to secure any new Ford Interceptors for PD. Moreover, an additional 14 police vehicles reached the end of their lifecycle, based on administrative policy No. 09100.508.
ANALYSIS:
Due to PD and Fleet staff’s proactiveness on the issue, they were able to locate twenty (20) 2023 Ford Interceptors available for purchase and immediate delivery. These vehicles are currently out of state, however all Police Interceptors built after 2021 meet the required 50-state emissions compliance standards does not affect any state-mandated requirements.
These new vehicles will meet the PD’s needs and will reduce the downtime for repairs of the remaining older units. In addition, the wait time to receive delivery of these new vehicles will be a fraction of the time normally associated with vehicle replacement orders, as factory build-to-order wait times are not a factor with this purchase opportunity. If the vehicles had been successfully accepted through the Ford order bank, the earliest they would have been expected is August 2024, which would have left PD further behind pace with their vehicle procurement and maintenance plans.
BASIS FOR DETERMINATION OF COMPETITIVE BIDDING
A competitive bid procedure has been conducted by the Monterey County Office of Education through CalSave and the Association of Education Purchasing Agencies. This process was conducted in accordance with procedures defined in the California Public Code and has been reviewed by both the Police Department and Public Works Department.
This method of procurement is permitted per the Corona Municipal Code (CMC) section 3.08.140(c), which states that competitive bidding is not required for non-public projects as follows:
“Competitive bidding already completed. When the Purchasing Manager and the authorized contracting party, with the approval of the City Manager, determine that:
1) A competitive bid procedure has been conducted by another public agency including, but not limited to, another local agency, the state through the California Multiple Award Schedule (CMAS), the federal government through the General Services Administration (GSA), the U.S. Communities Government Purchasing Alliance, or the Western States Contracting Alliance (WSCA); and
2) The price to the City is equal to or better than the price to that public agency.
On August 9 and 16, 2023, the Monterey County Office of Education (MCOE) advertised an Invitation for Bids No. AEPA 024-G Vehicles, Cars, SUVs, Light Duty Trucks/Vans, Emergency, Fuel, Hybrid, Electric for use by MCOE, other education and public agencies throughout California, and other eligible jurisdictions. Seven proposals were received and due and opened on September 12, 2023.
All responses were evaluated by a 5-member committee representing 29 States and, who recommended approval and contract award. Under authority, the agreement to PFVT Motor Inc. was executed by the Monterey County Office of Education on December 20, 2023.
The City seeks out cooperative purchasing agreements because they allow the City to save time, cut administrative costs, improve agency efficiency, and maximize city budgets by securing collective competitive pricing. By utilizing cooperative purchasing, the City will be leveraging a previous purchasing solicitation that another government agency performed.
FINANCIAL IMPACT:
PFVT Motors Inc. provided separate cost estimates for vehicles and armor. With the addition of local tax, an approval for the total Purchase Order not-to-exceed the amount of $1,312,352 is requested. Upfitting the vehicles to include light bars, computer mounts, gun racks, storage box, wiring for computers, and radios is estimated at approximately $700,000 or $35,000 per vehicle. Partial funding for this request is currently available in the Operating & Maintenance Vehicle Procurement Project No. 68341. Approval of the recommended actions will result in an appropriation in the amount of $370,012 from the Fleet Replacement Fund 684 to the Operating & Maintenance Vehicle Procurement Project No. 68341, as well as a cash transfer in the amount of $370,012 from the General Fund 110 to the Vehicle Replacement Fund 684 to offset the additional costs.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely approves the purchase of vehicles, and there is no possibility that this project will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: MICHAEL GRIESINGER, FLEET MANAGER
REVIEWED BY: SAVAT KHAMPHOU, PUBLIC WORKS DIRECTOR
Attachments:
1. Exhibit 1 - Vehicle Quotes
2. Exhibit 2 - Administrative Policy No. 09100.508
3. Exhibit 3 - Monterey County Office of Education- Proof of Publication
4. Exhibit 4 - Monterey County Office of Education - Contract Documents
5. Exhibit 5 - Part C - AEPA Member Agency (State) Terms and Conditions
6. Exhibit 6 - Police Department Vehicle Replacement List
7. Exhibit 7 - FY 2024 Proposed Vehicle Replacement Final