DATE: SEPTEMBER 10, 2024
DEPARTMENT: SALINAS POLICE DEPARTMENT
FROM: JOHN MURRAY, ACTING CHIEF OF POLICE
BY: TONYA ERICKSON, POLICE SERVICES ADMINISTRATOR
DIANA CALIZO, ADMINISTRATIVE ANALYST
TITLE: DIRECT PURCHASE OF POLICE VEHICLES
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing the Purchasing Officer to directly purchase eight (8) vehicles for use by Police Department employees for a total cost not to exceed $394,517.10.
BACKGROUND:
The FY 2024-25 City Budget provided funding to Departments to purchase new and replacement vehicles for use by Police Department employees and funding is available within the Department’s Vehicle Replacement Budget. The Department has identified new and replacement vehicle priorities based upon funding availability, and those purchases are identified in this Report.
The Salinas Plan identified the following goal related to Operational Efficiencies: “Implement a Citywide fleet strategy to centralize fleet operations, contract out non-routine fleet repair and maintenance functions, and develop fleet tracking, rightsizing, and replacement plans.” In 2020 the City’s Public Works’ Fleet Division began performing routine repair and maintenance for Police Department vehicles, and in 2023 they expanded services to include emergency equipment repair and installation on Police Vehicles. In 2021, Public Works implemented Fleetio, a fleet management software, to track and manage Citywide fleet vehicles and operations. Also in 2021, the Police Department developed a Fleet Replacement Plan to focus on standardization of vehicles, establishment of replacement cycles, and electrification of City fleet vehicles.
Over the last few years, all Departments have sometimes struggled with purchasing fleet vehicles. Departments have spent significant time trying to locate or order new and replacement vehicles as not all vehicles are consistently available for purchase via State Contract, and local dealerships are often charging premiums on desired vehicles, especially hybrids. When vehicles do become available, or State Contract order windows open, dealerships ask for an immediate commitment or issuance of a purchase order which requires City Council approval. In the case of most vehicles available via State Contract, the next model year pricing and order window have not yet been established but we have been told that orders will be cancelled if a purchase order is not generated within 30 days. Given the challenge with locating available vehicles at competitive cost we are requesting authorization to purchase target vehicles, once located, as long as the total cost for each vehicle does not exceed the projected not to exceed amount identified and the total for all the vehicles does not exceed the total amount identified in this Report.
The chart contained within this report identifies the target vehicle and pricing information for each vehicle needing to be purchased. Each vehicle has a Not to Exceed (NTE) total which represents the maximum purchasing authority granted. Additionally, purchases may not exceed the total fleet-related appropriations within the Police Department’s FY 2024-25 budget. Target vehicles are identified, though substitutions to equivalently priced and equipped vehicles may be necessary due to inventory challenges. Purchases of alternate makes or models will be subject to review and approval by the City’s Fleet Manager based upon how the vehicles fit within the City vehicle standardization framework, ability to provide internal maintenance and repair services, and projected vehicle reliability. The Police Department will make every effort to purchase locally if within the purchasing preference threshold, but given market conditions and vehicle availability, that may not be possible.
All requested purchase amounts utilize the most recent publicly available State Contract rate as the underlying pricing source. We have incorporated the 9.25% sales tax for the City of Salinas, as well as $1,000 to account for any potential dealer fees. The State contract price is below the Manufacturers Suggested Retail Price (MSRP) price, or the price available via local dealerships, thus we are requesting authorization of a contingency amount to allow for the higher price. Additionally, the dealerships are still transitioning to the new model year, while listed State contract prices are based upon current model year which can no longer be ordered. To account for an anticipated new model year price increase of up to 15%, as well as the 10% local purchasing preference, we have calculated a 25% contingency for each vehicle.
Target Vehicle
Pricing Resource
Qty
Per-Vehicle Price
Taxes & Fees
25% Contingency
NTE (Per Vehicle)
Ford Explorer (or alternate SUV, van, truck, or sedan)
State Contract
3 41,317.86
4,821.90
11,534.94
57,674.70
RAV 4 Hybrid (or alternate SUV/sedan)
State Contract
5 31,523.00
3,915.88
8,859.72
44,298.60
TOTAL VEHICLES
8 NOT TO EXCEED (NTE) TOTAL
394,517.10
Based upon the information provided within this report, the City Council has the authority to approve this direct purchase under Salinas Municipal code Section12-27 and without application of the local purchasing preference pursuant to Salinas Municipal Code Section 12-28.080; however, preference will be given to local vendors when such vehicles are available for purchase within the local purchasing preference guidelines and within the not to exceed amounts identified in this Report.
POLICE COMMUNITY ADVISORY COMMITTEE:
The Acting Chief of Police presented this item to the Police Community Advisory Committee on August 28, 2024. The Committee had an opportunity to ask questions or make comments related to this requested purchase.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
Approving the proposed resolution will support the City Council’s Strategic Plan Goals related to Public Safety and Effective and Culturally Responsive Government.
DEPARTMENTAL COORDINATION:
The Police Department and the Public Works Department have and will continue to collaborate on purchases, and coordinate with the Finance Departments during the purchasing process.
FISCAL AND SUSTAINABILITY IMPACT:
Funds are appropriated and available within the Department’s FY 2024-25 Vehicle Replacement Fund Budget, account 7121.40.4130.
ATTACHMENTS:
Resolution
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