200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5164
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: FEBRUARY 27, 2024
FROM: FINANCE DEPARTMENT
SUBJECT: POLICE DEPARTMENT VEHICLE PURCHASE
ATTACHMENT (Y/N): NO ITEM # 05
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Waive the bidding and publication requirements of Council Policy 4.0 and authorize the purchase of six (6) Tesla Model Y vehicles from Tesla, Inc., in an amount not to exceed $320,000 (plus all applicable taxes and fees); 2) Waive the bidding and publication requirements of Council Policy 4.0 and authorize the purchase of the parts and associated upfitting for the aforementioned vehicles from Unplugged Performance Inc., in an amount not to exceed $297,000 (plus all applicable taxes and fees) plus a 20% contingency; and
3) Authorize the Purchasing Agent, or their designee, to execute all documents necessary to complete the purchases and upfittings.
DISCUSSION:
The city of Anaheim currently owns a high-mileage, aged fleet of internal combustion engine (ICE) vehicles for the Police Department, which is maintained by Public Works. The city currently has a fleet of 83 patrol vehicles with the average vehicle being over seven years old. As the city’s public safety fleet vehicles age beyond their useful service life, or need to be replaced due to damage/repair, there is an immediate need to replace Police Department vehicles. The current options available for replenishing the fleet include: 1) utilizing the current order bank of vehicles; or 2) exploring purchasing options through other traditional or electric vehicle manufacturers.
Ongoing vehicle supply chain issues continue to negatively impact municipal fleets including the city of Anaheim. With the vehicle order bank system, the city must submit its order and then wait 8-12 months for fulfillment and delivery of vehicles.
This backlog in availability of vehicles and demand from a multitude of agencies has created not only a bottleneck situation, but also an urgency issue for emergency purchases when vehicles are damaged beyond repair or are beyond their useful life.
Police Department Vehicle Purchase
February 27, 2024
As mentioned previously, with the standard delivery time of vehicles via the order bank having a lead time ranging from 8-12 months, this is becoming a less viable option as time goes on. To provide an example, for purchase orders issued on September 6, 2022 for police interceptor utility (PIU) vehicles, the city began receiving vehicles this month. Additionally, for the current order bank that opened on February 8, 2024, deliveries are tentatively scheduled to begin in December 2024.
Staff from the Police and Public Works departments have been exploring alternative options to meet our operational needs. Upon research with electric manufacturer Tesla, Inc., the city has an opportunity to procure six (6) electric vehicles for the Police Department and have them deployed within approximately one month from time of order. There is a need for a total of six (6) Tesla Model Y vehicles at this time. To expedite the purchasing timeline as well as secure the best pricing, the proposed purchase would be made directly via Tesla, Inc. The purchase of the vehicles would be a sole source purchase as Tesla has a “No Reseller Policy” and sells cars directly to end-consumers. Associated upfitting and parts for the vehicles are proposed to be done through a third-party vendor, Unplugged Performance. Unlike other upfitters, work performed by Unplugged Performance does not void the manufacturer’s warranty. The upfitting requirements for our Tesla vehicles are highly specialized and proprietary technologies, and Unplugged Performance is the only entity with the capabilities to customize the vehicles to our exact specifications. This includes integrating specific technologies, software, safety features, and solutions designed specifically for Tesla vehicles in a law enforcement application. Tesla, Inc. representatives have provided a two-week lead time on vehicle delivery from time of order, with Unplugged Performance stating roughly 70 labor hours (or approximately 2-3 weeks) turnaround on the upfitting portion.
South Pasadena Police Department has successfully converted Police Department public safety fleet vehicles from gas-powered to electric-powered, specifically Tesla vehicles upfitted by Unplugged Performance. The procurement and upfitting of these vehicles will be a pilot program to allow us to evaluate the effectiveness of Teslas deployed as patrol vehicles.
The city is in a unique position to implement this pilot program given the city’s ownership/management of public utilities. The pilot program will provide us with a baseline to work from to comply with State-mandated changes to vehicles in the coming years and will allow us to assess cost savings on maintenance and operating expenses for current and future needs.
Since 2003, Tesla has evolved and emerged as the all-electric EV market leader with safe, mature products with advanced technology. Safety, reliability, and performance are critical elements of successful public safety fleet operations. The Tesla Model Y proposed for patrol operations outperforms existing vehicle options, both electric vehicle and gas-powered, in all relevant metrics. In addition, the Tesla Model Y is the only pursuit-rated electric-vehicle and is the safest vehicle ever crash-tested by the Insurance Institute for Highway Safety (IIHS). It received a 5-star safety rating in all categories and sub-categories by the National Highway Safety Administration (NHTSA). Additionally, Tesla also owns and operates the largest global fast-charging network of 35,000+ superchargers with the closest regional locations in Anaheim, Fullerton, Buena Park, Santa Ana, and Westminster.
Police Department Vehicle Purchase
February 27, 2024
Approval of the proposed vehicle purchases and associated upfitting, would assist the Police Department in carrying out patrol operations by replacing aged patrol vehicles or vehicles damaged beyond repair, versus waiting up to two years for replacements.
IMPACT ON BUDGET:
Adequate funding for these purchases is available in the Public Works Department’s Fleet & Facilities Motorized Equipment Fund budget for Fiscal Year 2023/24.
Respectfully submitted, Concurred by,
Jered Rakosky Rudy Emami
Purchasing Agent Director of Public Works
Rick P. Armendariz
Chief of Police