REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Order to Long Beach BMW Motorcycles for Four (4) 2019 BMW Motorcycles for the Department of Public Safety (F19-226)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a Purchase Order to Long Beach BMW Motorcycles of Long Beach, CA in the amount of $110,795.64 (including tire, document, administration fees, and CVR registration) excluding $9,959.88 in sales tax, for four (4) 2019 BMW R 1250 RT-P motorcycles 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 parties agree, it was awarded within 12 months, the contract is identical or nearly identical and 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
The Department of Public Safety (DPS) has the responsibility of traffic enforcement, collision investigations and response to emergency situations. The Division of Traffic Safety within DPS has been charged with these responsibilities as well as other activities such as escort details and traffic control situations. The use of a police motorcycle is essential to these functions. Additionally, a motorcycle is quicker and more maneuverable than a sedan, has the ability to catch up to and stop violators in heavy traffic and is more versatile for providing escorts for parades, funerals, VIP vehicles, and similar situations. Through evaluation by the Division of Traffic Safety, the BMW police motorcycle is considered the safest and most appropriate for service in the City.
The economical operation of the City’s fleet requires that vehicles and equipment be replaced prior to the time when operating costs exceed the life cycle cost in accordance with the vehicle replacement schedule. The criteria established for vehicle replacements are based on calculated life expectancy and accumulated mileage as determinants of useful life. Based on the severe duty performance over the course of its lifecycle, the Fleet Maintenance Division has designated the useful life of these vehicles to be at five years. The identified vehicles scheduled for replacement have either met or exceeded these criteria for the upcoming cycle of replacements.
The purchase of these vehicles follows Administrative Policy “Energy Conservation for City Owned Facilities and Equipment” (Chapter 6, Article 4). Subdivision 3.B and 3.C, which specifies that new vehicle purchases shall be energy efficient and where practical and economically feasible, alternative fuel vehicles shall be considered. Zero emission and hybrid alternative vehicles that meet the specifications required for the Division of Traffic Safety are not available for this type of vehicle.
Section 2.08.220(b) of the Sunnyvale Municipal Code allows use of another entity’s contract if all the original parties to the contract agree, the contract was awarded within twelve months of the date of authorization, and the contract is for identical or nearly identical goods/services. The identified vehicles that meet the City’s requirements are available through a contract issued by the City of Sacramento that meets the requirements of the code. Utilizing the Sacramento contract pricing saves time researching and writing vehicle specifications while benefiting from established vehicle pricing through this agreement.
FISCAL IMPACT
The total cost of this purchase is $122,138.87 and funding is available in the Fleet Equipment Replacement Account. The City’s Fleet vehicles are funded by the City’s General Services Fund, Fleet Services Sub-Fund provides for ongoing fleet equipment replacement. Funding is provided through internal service charges from the various affected departments based on the equipment used.
This table outlines the total cost of purchase with estimated sales tax.
|
Description |
Quantity |
Unit Cost |
Extended Cost |
|
BMW R 1250 RT-P |
4 |
$27,586.41 |
$110,345.64 |
|
Document or Administration Fee |
4 |
$80.00 |
$320.00 |
|
Tire Fee |
4 |
$3.50 |
$14.00 |
|
CVR Registration |
4 |
$29.00 |
$116.00 |
|
Subtotal |
|
|
$110,795.64 |
|
Estimated Sales Tax (units and doc fees only) |
|
|
$9,959.88 |
|
Total |
|
|
$120,755.52 |
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Authorize the issuance of a Purchase Order in the amount of $110,795.64 (including tire, document, administration fees, and CVR registration) excluding $9,959.88 in sales tax, in substantially the same form as Attachment 1 to the report, to Long Beach BMW Motorcycles for four (4) 2019 BMW R 1250 RT-P motorcycles.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Phan S. Ngo, Department of Public Safety
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft PO006492 Long Beach BMW-1