MEMORANDUM TO: FROM: CITY COUNCIL STEVEN N. ANNIBALI, CHIEF OF POLICE SUBJECT: CONSIDERATION TO AUTHORIZE AN AWARD OF BID FOR THE PURCHASE OF A TRUCK AND DECLARING EXISTING VEHICLES AS SURPLUS PROPERTY DATE: OCTOBER 14, 2014 RECOMMENDATION: It is recommended that the City Council: 1) award a bid for the purchase of a 2015 Dodge Ram 2500 Crew Cab to McPeek Dodge of Anaheim, CA and 2) adopt a Resolution declaring the existing police vehicles as surplus and authorizing their disposal. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: This expenditure is to be funded out of the approved Police Department FY 2014-15 budget under debt service- leasing. Due to the fact that the Police Department delayed the replacement of the staff vehicle lease due to low mileage, this resulted in $62,040 available for this purchase. This transaction will be a purchase, instead of a lease in order to take advantage of one time available funds and the anticipated long term service life of the vehicle. BACKGROUND: This action is a fleet reduction and efficiency undertaking. The Police Department introduced the fleet leasing program in 2008 and it has proven to be a viable and cost effective alternative to traditional purchasing. The vehicles are covered by a manufacturer's extended service contract during the entire term of the lease which, has substantially reduced the annual cost of fleet maintenance. In 2009, the Police Department obtained two American General HMMWV or "Humvee" from the Defense Reutilization and Marketing Program. The acquisition of these vehicles was specifically designed to provide for two needs; a vehicle for our contingent to t.he San Luis Obispo Regional SWAT Team and the second one to tow the grant funded DUI Checkpoint/Field Command Post trailer. In order to be considered for the trailer grant, the Police Department had to demonstrate that an adequate tow vehicle was available in the Police Department fleet in order to qualify. Item 8.l. - Page 1
CITY COUNCIL CONSIDERATION TO AUTHORIZE AN AWARD OF BID FOR THE PURCHASE OF A TRUCK AND DECLARING EXISTING VEHICLES AS SURPLUS PROPERTY OCTOBER 14, 2014 PAGE 2 Based on a review of vehicle use and condition, a decision was made last year to extend the warranties on the six staff vehicles and extend their use until FY 2015-16. Therefore, freeing up one time funding in the approved Police Department FY 2014-15 budget under debt service- leasing. Additionally, the need to replace the 2002 Chevrolet S-1 0 pickup for Neighborhood Services is pending due to its age and condition. The vehicles identified have been determined to no longer be needed in the police fleet based on this fleet reduction and efficiency effort. ANALYSIS OF ISSUES: Although one of the humvees is still in use with the San Luis Obispo Regional SWAT Team, the second humvee is no longer needed and is available to be deemed surplus. The second humvee's capabilities are very limited when it comes to towing the grant funded trailer. The humvee cannot reach a speed much beyond 40 MPH and overheats when towing. This limits the ability to deploy the trailer as required by the original grant. If replaced with a new tow vehicle, this second humvee will be surplus. The 2002 Chevrolet S-1 0 is in need of replacement and it is proposed that it be deemed surplus and replaced with an existing vehicle (Dodge Dakota) in the fleet. In addition to the surplus of the humvee and the Chevrolet S-1 0 pickup, two trailers have also been deemed surplus. That is equipment #4621 (1995 Kustom Radar Trailer) and a non-inventoried aged former generator trailer (VIN#118898). It should be noted that the humvee is not authorized to be sold based on federal regulations. It is however available to be transferred to other authorized agencies and/or returned. There is an interested authorized agency already identified. The Chevrolet S-1 0 pickup and two trailers will be sold at auction. The proposal calls for the award of bid to McPeek Dodge by "piggy backing" on existing contracts from larger jurisdictions in order to achieve a cost benefit from the larger orders. The truck will be acquired through the City of Anaheim contract. Item 8.l. - Page 2
CITY COUNCIL. CONSIDERATION TO AUTHORIZE AN AWARD OF BID FOR THE PURCHASE OF A TRUCK AND DECLARING EXISTING VEHICLES AS SURPLUS PROPERTY OCTOBER 14, 2014 PAGE 3 This request is to authorize the award of the following bid proposals: Vehicle (2015 Dodge Ram 2500 4x4) McPeek Dodge $39,117.71 (City of Anaheim piggyback) ALTERNATIVES: The following alternatives are provided for the Council's consideration: Recommended Alternative: 1) award a bid for the purchase of a 2015 Dodge Ram 2500 Crew Cab to McPeek Dodge of Anaheim, CA; 2) adopt a resolution declaring the specified police vehicles as surplus and authorizing their disposal as outlined in this report. Do not approve staff's recommendation. Provide direction to staff. ADVANTAGES: This proposed plan will continue to provide for the police fleet leasing program, however taking advantage of onetime available funds in that program to allow for the purchase of a much needed, capable, full service tow/utility vehicle. Additionally, the purchase will provide for the reduction in the entire fleet. DISADVANTAGES: There were no disadvantages identified ENVIRONMENTAL REVIEW: This project is exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3) PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, October 9, 2014 and the agenda and staff report were posted to the City's website on Friday, October 10, 2014. No public input has been received to date. Attachments: 1. Proposal based on the City of Anaheim I P0#412-370355 Item 8.l. - Page 3
RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING VEHICLES AS SURPLUS AND AUTHORIZING THEIR DISPOSAL WHEREAS, the City of Arroyo Grande has certain vehicles which are no longer needed; and WHEREAS, the vehicles can be classified as surplus property and made available for sale or transfer. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby declare as surplus the vehicles described in Exhibit A, attached hereto and incorporated herein by this reference, and authorizes their sale or transfer. On motion of Council Member, seconded by Council Member and by the following role call vote, to wit: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted this 14 1 h day of October 2014. Item 8.l. - Page 4
RESOLUTION NO. PAGE 2 TONYFERRARA,MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Item 8.l. - Page 5
EXHIBIT A SURPLUS VEHICLES AVAILABLE FOR SALE AND/OR AUCTION VEHICLES: 1. 2002 Chevrolet S-1 0 pickup (Unit #4626) VI N #1 GCCS 19W928239281 2. 1995 Kustom radar trailer (Unit #4631) VIN #1 K9BS0815TK118397 3. Unknown year I model trailer (No unit#) VIN #118898 SURPLUS VEHICLES AVAILABLE FOR TRANSFER 1. 1985 American General HMMWV (Unit#4637) I D# CA866403 Item 8.l. - Page 6
ATIACHMENT 1 LlOi:lGIE September 18, 2014 Chief Annibali City of Arroyo Grande Police Dept Chief Annibali In response to your inquiry, we are pleased to submit the following for your review McPeek's Dodge of Anaheim will sell, service, and deliver; New/Unused 2015 Ram 2500 crew cab 4x4 Per the city specification for 36,212.00 plus tax & 8.75 tire fee each unit, please see attached for total pricing. This Vehicle is available urder the cooperative purchase provision of the City Anaheim Contract# 412-370355 I Bid# 8289 Terms are Net 30 days -1/ Sincerely / 7J'Y Kevin Buzzard McPeek's Dodge of Anaheim Fleet Manager 1221 Auto Center Drive o P.O. Box 730 o Anaheim, CA 9281.5 o Ph: 714-635-2340 o Fax 714-533-1553 Item 8.l. - Page 7
QUOTE CITY OF ARROYO GRANDE 2015 RAM 2500 CREW CAB 4X4 PICK UP PER CITY OF ANAHEIM 8289 I P.O 412-370355 9-18-2014 INCLUDES OPTIONS 6.4 LITER HEMI GAS ENGINE 6 SPEED AUTO TRANS 40/20/40 CLOTH SPLIT BENCH SEAT ELECTRONIC MONITORING MODULE COLOR BLACK 220 AMP ALTERNATOR BLUETOOTH BACK UP CAMERA AND SENSORS ELEC SHIFT TRANSFER CASE BED LINER ANTI SPIN DIFFERENTIAL BLACK VINYL FLOOR 4:10REARAXEL TRAILER BRAKE CONTROL CAB HIGH SHELL W/SIDE DOORS SELLING PRICE LESS OPTIONS NOT NEED BY ARROYO GRADE POLICE DEPT SUB TOTAL SALES TAX 8.0% CA TIRE TAX TOTAL FOR EACH CAR DELIVERY 90-120 DAYS ARO 94,598.75-58,386.75 36,212.00 2,896.96 8.75 39,117.71 1221 Auto Center Drive o P.O. Box 730 o Anaheim, CA 92815 o Ph: 714-635-2340 o Fax 714-533-1553 Item 8.l. - Page 8
DODGE McPeek's Dodge of Anaheim 1221 AUTO CENTERDR ANAHEIM, CA 9280 714-254-2613 OFC 714-254-2614 FAX 714-264-1867 CELL KEVINB@MCPEEKDODGE.COM 1221 Auto Center Drive o P.O. Box 730 o Anaheim, CA 92815 o Ph: 714-635-2340 o Fax 714-533-1553 Item 8.l. - Page 9
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