REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Blanket Purchase Order in the Amount of $1,260,000 to Folsom Lake Ford for the Purchase of Ford Interceptor Sport Utility Vehicles (F24-104)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a Blanket Purchase Order to Folsom Lake Ford of Folsom, CA in the amount of $1,260,000 (including tire, documentation fees, delivery fees, and sales tax) to purchase up to twenty (20) marked and unmarked 2024 and 2025 Ford Police Interceptor Sport Utility Vehicles (SUVs) for the Department of Public Safety.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, Council approval is required for the procurement of goods and/or services greater than $100,000 in any one transaction.
In accordance with Sunnyvale Municipal Code Section 2.08.220(b), the purchasing officer may authorize the procurement of goods and/or services through a contract initiated by another governmental, public or quasi-public agency, provided that the original parties to the contract agree, the contract was awarded within 36 months of the date of city authorization to utilize the contract, the contract is for identical or nearly identical goods and/or services, and the contract resulted from competitive bids methods similar to those set forth in Sunnyvale Municipal Code Section 2.08.060.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
Economical operation of the City’s fleet requires that vehicles and equipment be replaced before operating costs become excessive. This contract will replace up to twenty (20) patrol and unmarked units that are scheduled for replacement during the next several fiscal years.
The City currently utilizes 34 Ford Police Interceptors for patrol and investigations. The Interceptor SUV has greater interior volume and has been the proven choice of vehicle for patrol and K-9 operations for DPS. Interceptors currently come in both gas and hybrid versions. The City has been purchasing hybrid models, though is finding that the downtime, warranty, and maintenance work has been higher than expected. Currently hybrid models are not available to order and it is uncertain when they will come available.
An initial order of five (5) 2024 gas only Interceptors will be placed upon approval of this agreement. These five (5) will address replacement of the oldest vehicles in service and bridge the time gap needed for orders to open and delivery to be completed for the 2025 hybrid model. If hybrids are further delayed, the City may order additional gas only models to meet operational demand. Some of these purchases may be unmarked or retrofitted for K-9 operations or Community Service Officer vehicles as well.
Traditionally, the City has purchased fleet vehicles through various cooperative purchasing agreements or through a California Statewide Commodity Contract. The City has used the State of California vehicle contracts many times in the past to identify vendors and has experienced better pricing than when bidding the goods/services individually. Interceptor SUVs that meet the City’s requirements are available through a Statewide Commodity Leveraged Purchasing Agreement. Utilizing the Statewide Contract pricing saves time while benefiting from established vehicle pricing through this Contract.
FISCAL IMPACT
Vehicle replacements are funded by the Fleet Replacement Sub fund in the Internal Services Fund. Revenue to the fund comes through internal service charges to departments based on the equipment used. Police vehicles are funded fully by the General Fund. Funding is available for the initial purchase in the current budget, and future purchases are included in the schedule and financial plan for future fiscal years, subject to Council adoption of future year budgets.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Authorize the issuance of a Blanket Purchase Order in the amount of $1,260,000 to Folsom Lake Ford for the purchase of Ford Interceptor Sport Utility Vehicles
Staff
Prepared by: Tim Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Kent Steffens, City Manager