Item 383/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Samuel Kim
Dept:
City Manager Dept: Public Works
Date: 9/24/2024
Subject: Authorization of the issuance of a purchase order to Olathe Ford, Inc. for the purchase of nine (9) Police patrol vehicles and four (4) Police administrative vehicles. (Cost: $721,942.48) (Action Item)
OBJECTIVE
To secure City Council authorization to purchase nine (9) new police patrol vehicles and four (4) police admin vehicles from Olathe Ford Inc. through the Institute for Public Procurement (NIGP), Cooperative Bid Contract # Mid-America 62-63.
BACKGROUND
Fleet Services maintains a pool of nine Police Patrol vehicles in its reserves pool. This practice minimizes interruption to services due to unexpected vehicle loss. Vehicles are rotated in and out of the reserves pools throughout the year for repairs, replacement, update or other maintenance requirements. The nine patrol vehicles currently in the reserves pool are eligible for replacement based on the City’s Fleet Management Policy. Additionally, there are four (4) Police administrative vehicles that have met the guidelines for replacement during the current fiscal year. All of the 13 vehicle replacements were approved through the FY 2024-25 budget process.
DISCUSSION
Experience has shown that the City’s buying power is enhanced through joining with other public agencies to purchase police fleet vehicles. Efforts to obtain a quote from a local Ford dealer were unsuccessful, as there are no Ford dealers within the city l imits. City staff recommends “piggybacking” on an NIGP Cooperative Bid, conducted by Clay County, Missouri, which awarded the contract to Olathe Ford, Inc. in Kansas, Contract # Mid-America 62-63, dated September 26, 2023. The Clay County contract had pricing for the Ford Explorer’s as “TBD” as the pricing was not released at the time. Staff obtained a quote from Olathe Ford recently, the pricing received was consistent with pricing obtained from another cooperative purchasing venues, Sourcewell, and a past vendor, National Auto Fleet Group.
Item 383/2024
Olathe Ford Inc. $56,074.44 each*
(Police patrol vehicles)
Olathe Ford Inc. $54,318.13 each* (Police admin vehicles)
* This price includes all applicable tax and destination charges.
FINANCIAL IMPACT
The total cost of procuring the 13 Police replacement vehicles is $721,942.48. This amount is budgeted in and will be paid from the Fleet Management internal service fund. The surplus vehicles will be sold at public auction, and proceeds will be deposited in the Fleet fund.
RECOMMENDATION
It is recommended that the City Council:
Authorize the Finance Director to issue a purchase order in the amount of $721,942.48 to Olathe Ford INC. for the purchase of nine (9) new police patrol vehicles and four (4) police admin vehicles.
By: Steve Sudduth, Public Works Supervisor
ATTACHMENTS
1. Patrol Vehicle Quote - Olathe Fleet
2. Patrol Vehicle Quote - National Auto Fleet
3. Admin Vehicle Quote - Olathe Fleet
4. Admin Vehicle Quote - National Auto Fleet
5. Contract IFB
6. Contract Renewal