Administrative
Report
H.5., File # 22-4999 Meeting Date: 10/18/2022
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
APPROVE THE UPDATED PURCHASE ORDER FOR FIVE POLICE DEPARTMENT PATROL 2023
MODEL YEAR VEHICLES FROM NATIONAL AUTO FLEET GROUP
EXECUTIVE SUMMARY
On February 15, 2022 the City Council approved the purchase of five 2022 Ford Inceptor Police Patrol Vehicles from National Auto Fleet Group for a cost of $330,089. Due to supply chain issues in the automotive industry, the manufacturer has not been able to meet the demand for the 2022 vehicles and has canceled the City’s order. A new quote for 2023 Ford Inceptors has been provided by National Auto Fleet Group at a revised total cost of $395,078. As these vehicles are essential to police operations and are already beyond their normal replacement cycle, it is recommended that the Council approve the updated purchase order.
BACKGROUND
On February 15, 2022 the City Council approved the purchase of five 2022 Ford Inceptors to be used as Police Patrol Vehicles (units 660, 661, 672, 675, 678) from National Auto Fleet Group or an approved cost of $330,089. Vehicle delivery was expected within six to ten-month window. The five vehicles approved for purchase are included in the chart below.
Unit Year Existing Vehicle Assigned Dept Status
660 2017 FORD UTILITY PATROL P In Progress
661 2017 FORD UTILITY PATROL P In Progress
672 2017 FORD UTILITY SLICK TOP PATROL P In Progress
675 2017 DODGE RAM CHARGER SLICK TOP PATROL P In Progress 678 2017 DODGE RAM CHARGER PATROL P In Progress
Due to a number of factors, including significant supply chain issues affecting the automotive market, vehicle delivery was delayed, and then canceled by the manufacturer. At this time, staff have been advised, by National Auto Fleet Group that a re-order for the 2023 model year Ford Inceptors is required for the City to continue with the purchase. A revised quote for the 2023 model year Ford Inceptors was provided with a total purchase price of $395,078, representing a $64,989 increase from the previously approved vehicle purchase.
As previously noted, National Auto Fleet Group and other vendors, have advised that the high
H.5., File # 22-4999 Meeting Date: 10/18/2022
As previously noted, National Auto Fleet Group and other vendors, have advised that the high demand and lack of inventory will likely continue into the 2023 model year. Public Works projected continuing challenges in sourcing competitively priced vehicles through our regular procurement processes and a 10-20% cost increase for 2023 vehicles across all manufacturers, classes and fuel categories. We are seeing this projected increase in these new 2023 quotes for the five Ford Inceptors.
The five vehicles in question are Police Patrol vehicles critical for the Department to carry out its duties within the City. All five vehicle replacements were deferred from purchase in FY 2020-21 Approved Budget as part of Decision Package (DP) #21. This DP extended the replacement cycle for all vehicles by one year. Given the one-year extension of these vehicles’ replacement cycle, and the significant market delays caused since the vehicles were ordered, the five vehicles are well past their useful life. It is recommended that Council approve the revised purchase.
The initial funding for the five vehicles is encumbered though the original purchase orders. There is sufficient funding available in the FY 2022-23 approved Public Works Maintenance and Operations budget to fund the $64,989 cost increase.
COORDINATION
The Public Works Department coordinated this report with the Finance Department.
FISCAL IMPACT
Approval of the recommended re-ordering will increase the cost of the five vehicles by approximately $64,989. The funding for the increased cost is available at this time in Public Works Maintenance and Operations Budget. Additional Vehicle Replacement Funds will be requested at mid-year to account for the adjusted pricing.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Quote - National Auto Fleet Group Quote, Unit 672
· Quote - National Auto Fleet Group Quote, Units 675, 678, 660, 661