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CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
November 15, 2022
Agenda Item No. 14
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jon Lewis, Chief of Police - 949-644-3701, [email protected] PREPARED BY: Jonathan Stafford, Deputy Director, [email protected] PHONE: 949-644-3650
TITLE: Purchase of Additional Police Patrol Vehicles
ABSTRACT -
The Police Department seeks City Council approval to purchase six Ford Police Interceptor Utility vehicles from the National Auto Fleet Group (NAFG) using Sourcewell cooperative pricing and for a budget amendment to provide funding from the Police Equipment Fund. The six police patrol vehicles were originally funded and ordered in FY 2021-22, but the order was cancelled by the Ford Motor Company. The purchase is in accordance with the department's annual vehicle replacement plan, and the six black - and -white patrol vehicles scheduled for replacement meet the time, mileage and condition replacement criteria of Council Policy F-9.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve the purchase of six Ford Police Interceptor Utility vehicles from the National Auto Fleet Group of Watsonville, California, using Sourcewell cooperative pricing, and authorize the City Manager to execute a purchase order in the amount of $308,707.44; and
c) Approve Budget Amendment No. 23-032 appropriating $56,532.87 in increased expenditures in Account No. 75304-911016 from the Police Equipment Fund (Fund 753) balance.
DISCUSSION:
The Police Department continually evaluates the condition of its fleet and schedules vehicles for replacement during the annual budget preparation process. The replacement criteria in the City Vehicle/Equipment Replacement Guidelines (Council Policy F-9) are used to determine which vehicles will be replaced. Police patrol and traffic vehicles should normally be replaced after four years or 75,000 miles. The vehicles scheduled for replacement have all exceeded both the mileage and condition criteria of Council Policy F-9 and are beyond their recommended service lives.
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Purchase of Additional Police Patrol Vehicles
November 15, 2022
The Ford Police Interceptor Utility vehicle was chosen from the available police package vehicles in 2012 and upgraded to the hybrid version in 2019. It remains the Police Department's standard platform for black -and -white and plain patrol vehicles. The police package vehicle market is continuously reviewed to ensure the Police Department deploys the safest, most efficient vehicle that is best suited for heavy duty patrol use and the unique demands of Newport Beach. The Ford Police Interceptor Utility vehicle has performed extremely well throughout its service life, and it continues to be the police fleet industry standard for patrol vehicles.
The replacement cost of the six vehicles is $308,707.44, which was obtained using Sourcewell cooperative pricing through NAFG. Using Sourcewell pricing is recommended by the City of Newport Beach's (City's) Purchasing staff because it allows for a shorter procurement timeline, applies multi -agency pricing discounts, and allows participation in a very large order with Ford, which is less likely to be cancelled.
The ordering deadline for police package vehicles had already passed, but staff was able to secure these six (non -Hybrid) vehicles because another agency ordered them, but will not need them. Ford cancelled the City's March 2022 order of six Police Interceptor Utility vehicles from a local dealer without explanation so it is very important that the City participates in this large NAFG order. This opportunity arose after the staff report deadline for the seven Police Interceptor Hybrid Utilities approved by the City Council at its meeting on October 25, 2022. We will not be able to order patrol vehicles again until September 2023, which would put the Police Department a year behind in the fleet replacement schedule. A total of 15 patrol vehicles are in need of imminent replacement. Currently, 14 patrol vehicles are already well beyond their service lives and the mileage and condition replacement criteria of Council Policy F-9. Another patrol vehicle was taken out of service because it was damaged in a collision and repair costs exceeded the value of the vehicle.
FISCAL IMPACT:
The Budget Amendment appropriates $56,532.87 in increased expenditure appropriations from the Police Equipment Fund (Fund 753) to the Police Equipment Rolling Stock account in the Police Department, 75304-911016. The fund balance is sufficient to absorb the extra appropriation in the current fiscal year and the Internal Service Fund will be evaluated during the next budget preparation cycle. The new appropriation will be added to $252,174.57 in encumbered FY 2021-22 funds for a total purchase order amount of $308,707.44. Ford cancelled the order that was placed with a purchase order issued in March 2022, making those funds available for this purchase.
The additional $56,532.87 is needed to cover a significant cost increase of $9,422.15 per vehicle caused by unforeseen increases in inflation and ongoing issues with the automobile manufacturing supply chain.
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Purchase of Additional Police Patrol Vehicles
November 15, 2022
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. ► Is] IINIki131
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Budget Amendment No. 23-032
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ATTACHMENT A
Budget Amendment No. 23-032
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Department: Police
Requestor: Jonathan Stafford
City of Newport Beach
BUDGET AMENDMENT
2022-23 BA#: 23-032
ONETIME: ❑v Yes []No
Approvals
❑ CITY MANAGER'S APPROVAL ONLY 2'V
Finance Director: Date � 2�
0 COUNCIL APPROVAL REQUIRED City Clerk: Date
EXPLANATION FOR REQUEST:
Appropriate increased funds to purchase Patrol Vehicles, in conjunction with FY22 encumbrance due to Ford Purchase ❑ from existing budget appropriations Contract previous cancellation. ❑ from additional estimated revenues ❑� from unappropriated fund balance
REVENUES
Fund #
Org
Object Project Description
Increase or (Decrease) $
Subtotal $
EXPENDITURES
Fund #
Org
Object Project Description
Increase or (Decrease) $
753
75304
911016 POLICE EQUIPMENT NON OP -
ROLLING EQUIPMENT 56,532.87
Subtotal $ 56,532.87
FUND BALANCE
Fund #
Object
Description
Increase or (Decrease) $
753
300000
POLICE EQUIPMENT FUND - FUND BALANCE CONTROL
(56,532.87)
Subtotal' $ (56,532.87)�
Fund Balance Change Required
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