City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: SEPTEMBER 6, 2022 FROM: GENERAL SERVICES DEPARTMENT WARDS: ALL SUBJECT: MEASURE Z – WAIVE THE FORMAL PROCUREMENT PROCESS FOR THE PURCHASE OF NEW AND USED VEHICLES, MOTORCYCLES INCLUDED, FOR THE POLICE DEPARTMENT IN AN AMOUNT ESTIMATED AT $65,000 PER VEHICLE FOR A TOTAL NOT TO EXCEED AMOUNT OF $1,700,000 ANUALLY WITH VARIOUS VENDORS.
ISSUE:
Waive the formal procurement process and authorize the purchase of new and used vehicles, motorcycles included, for the Police Department in an amount estimated at $65,000 per vehicle for a total not to exceed amount of $1,700,000 annually, subject to the availability of budgeted funds, with various vendors.
RECOMMENDATIONS:
That the City Council:
With at least five affirmative votes, waive the formal procurement process per section 602(p) of Purchasing Resolution No. 23812 and authorize the purchase of new and used vehicles, motorcycles included, for the Police Department in an amount estimated at $65,000 per vehicle for a total not to exceed amount of $1,700,000 annually, subject to the availability of budgeted funds, with various vendors; and Authorize the City Manager, or designee, to execute the individual purchase orders and all necessary documents as needed for these individual purchases with all authority for such expiring on June 30, 2023.
BACKGROUND:
Measure Z was placed on the November 8, 2016 ballot. The measure authorized a one-cent increase in the City’s sales tax rate and was approved by over 60% of Riverside voters. The collection of the additional one-cent sales tax began on April 1, 2017.
After hearing recommended Measure Z spending options from City staff and the Budget Engagement Committee (BEC), on May 16, 2017 the City Council approved the Measure Z Spending Plan. As part of the Measure Z Spending Plan, the City Council approved funding for a Police Vehicle Replacement and Maintenance Plan in the amount of approximately $2.2 million per year.
In order to meet the vehicle needs of the Police Department in a timely manner, on October 5, 2021, the City Council waived the formal procurement process per section 602(m) of Purchasing Resolution No. 23256 and authorized the purchase of new and used vehicles for the Police Department in an amount estimated at $65,000 per vehicle for a total not to exceed amount of $1,300,000, subject to the availability of budgeted funds, with various vendors ending June 30, 2022.
Shortly after this approval, immediate purchases were made for three vehicles for the Police Department in the total amount of $100,159.12. Shortly after these purchases, it was learned that order cutoffs were pending for the Police Interceptor Ford Explorers. It was determined to be in the best interest of the Police Department, the City of Riverside, and the safety of the public to secure the purchase of thirty pursuit units with the approved funding in the total amount of $1,187,405.52. As a result of securing this order, the remaining balance of funds was immediately exhausted.
On December 14, 2021, City Council approved a carryover of unexpended funds of approximately $2.3 million in the General Fund and $38.7 million in other City Funds into Fiscal Year 2021/22. Approximately $1.8 million Measure Z Funds were carried over into Spending Item #12 – Police Vehicle Replacement and Maintenance.
On February 22, 2022, City Council approved an increase in spending authority for the purchase of new and used vehicles for the police department in the amount of $1,700,000 for a total amount not to exceed $3,000,000, subject to the availability of budgeted funds, with various vendors ending June 30, 2022.
Between February 22, 2022 and June 30, 2022, the Police Department purchased twenty vehicles for a total amount of $700,887.54.
DISCUSSION:
The Police Department has a need to purchase individual vehicles of all types to replace an aging fleet and for use in special assignments by the Police Department. Normally the vehicles would be purchased through the formal or informal procurement process whereby vehicle specifications would be sent to a minimum of three vendors and quotes would be requested in an effort to obtain the best and lowest price for the City. Any single purchase or total purchase with a single vendor exceeding $50,000 would be brought before City Council for approval.
In recent months it has become exceedingly difficult to purchase new or used vehicles of any kind for the Department. Due to global microchip shortages and other production delays, the supply of vehicles has decreased but the demand continues to remain the same or has increased. Many dealerships are selling their vehicles on a first come, first serve basis and are unwilling to hold vehicles in order to facilitate conventional City procurement processes.
Due to continued vehicle shortages in the automotive market, the City Council is asked to continue to waive the formal procurement process and authorize the purchase of new and used vehicles, including but not limited to, patrol vehicles, unmarked vehicles, undercover vehicles, and motorcycles, for the Police Department in an amount estimated at $65,000 per vehicle for a total not to exceed $1,700,000 annually, subject to the availability of budgeted funds, with various vendors.
The proposed total purchase amount of $1,700,000 will allow the Police Department to purchase a minimum of 26 vehicles at the estimated purchase price of $65,000 per vehicle. Last fiscal year, the average price per vehicle was approximately $38,000 with costs ranging from approximately $26,000 to $57,000 per vehicle.
This action is pursuant to Purchasing Resolution No. 23812, Section 602(p) which states: “Competitive Procurement through the Informal Procurement and Formal Procurement process shall not be required in any of the following circumstances:…(p) When approved by the Manager, the City requires Goods not subject to the bidding requirements of Section 1109 of the City Charter, which are of such a nature that suitable technical or performance specifications describing them are not readily available and cannot be developed in a timely manner to meet the needs of the City, in which case the Manager shall be authorized to negotiate with any Person or Persons for the Procurement thereof upon the price, terms and conditions deemed by the Manger to be in the best interest of the City and in doing so may utilize Informal Procurement or Negotiated Procurement process.” The Police Chief concurs with the recommended action.
The Purchasing Manager concurs that the recommendation to authorize the purchases is in compliance with Purchasing Resolution 23812.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority No. 2 Community Well-Being and Goal 2.6 - Strengthen community preparedness for emergencies to ensure effective response and recovery.
This item aligns with EACH of the five Cross-Cutting Threads as follows:
Community Trust – Vehicles are required to meet the operational needs of the Police Department. The timely purchase of police vehicles strengthens community trust by ensuring Police Department staff are equipped to perform basic functions and meet the public safety needs of the community.
Equity – The Police Department endeavors to provide public safety services to all residents in the City of Riverside. To achieve this goal, the Police Department requires specialized vehicles and equipment. Reliable vehicles help the Police Department ensure that every member of the community has equal access to share in the benefits.
Fiscal Responsibility – The General Services Department, Fleet Division is proposing this purchase in accordance with Purchasing Resolution 23812, Section 602(p) and will do its best to ensure the best price, terms and conditions are negotiated.
Innovation – The Police Department requires specialized vehicles and equipment to meet the changing needs of the community. The proposed purchase authorization provides an innovative solution to allow the Police Department to acquire the necessary vehicles in a timely fashion during a global vehicle shortage.
Sustainability & Resiliency – Replacing the Police Departments aging fleet allows the Police Department to meet the needs of the present without compromising the needs of the future. Newer vehicles will reduce the Police Departments carbon footprint.
FISCAL IMPACT:
The total fiscal impact of the action is $1,700,000. The funds are available in the Measure Z Fund, Police Field Operations, Vehicle Replacement account no. 8001201-450057. Appropriations for future fiscal years will be included in the Department’s Budget submissions for those fiscal years to be presented to the City Council for approval.
Prepared by: Carl Carey, General Services Director
Certified as to
availability of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/Treasurer
Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra Norton, City Attorney
Measure Z PD Vehicle Purchase ● Page 2