REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: CLIFF TRAUGH, Administrative Manager
General Services Department
SUBJECT
Title
Approve a change order in the amount of $1,131,160 to a purchase contract with 72 HOUR LLC previously awarded by Council on September 29, 2022, to increase the quantity of Dodge Durango marked patrol vehicles from 80 to 105 for a total revised contract value of $4,750,870.04 (Bid File 12300303)
Body
RECOMMENDATION
Staff recommends Council approve a change order in the amount of $1,131,160 to a purchase contract with 72 HOUR LLC of Watsonville, California, for 25 additional Dodge Durango marked patrol vehicles.
EXECUTIVE SUMMARY
The City of Fresno Police Department is requesting approval to purchase 25 additional Dodge Durango marked patrol vehicles as replacements within the existing fleet. The new units will mobilize law enforcement officers and transport all needed equipment safely and securely. The vehicles will be purchased through a change order to an existing contract that was competitively bid and approved by Council on September 29, 2022. The City intends to finance the 25 marked patrol vehicles through the City’s Master Equipment Lease Purchase Agreement with annual debt service payment not to exceed $470,000 with the first payment of approximately $235,000 due in FY2023.
Due to global supply constraints, the factory order window for Dodge Durango vehicles will be closing imminently. Should Council delay approval beyond November 17, 2022, General Services may lose the opportunity to purchase model year 2023 vehicles adding a delay of an additional 12 months or more above normal lead times.
BACKGROUND
With an emphasis on community partnerships, the Police Department is responsible for daily policing operations within the City of Fresno. The overall goal of the Police Department is to maintain the highest level of service while keeping our community safe. To accomplish this goal, officers utilize 397 active marked units to conduct daily patrols, respond to emergency calls, and proactively engage in community outreach.
With an active marked patrol fleet of 397 units, currently 151 are due for replacement. Sixty units will be retired within the next three months as the FY2022 units are delivered and put into service. The original FY2023 order will retire an additional 60 units leaving 31 marked patrol vehicles overdue for replacement. This request to purchase an additional 25 replacement units from the existing contract will lower the number of vehicles overdue for replacement down to six. This action will move the marked patrol fleet closer to the recommended replacement schedule and ensure that the fleet is modern, reliable, and safe for our officers.
In FY2022, General Services Fleet Management Division in collaboration with the Police Department selected the Dodge Durango Pursuit to replace aging Dodge Chargers and Ford Explorers. On December 2, 2021, Council approved the purchase of 91 units. The first batch of units began entering service in October of 2022.
Prior to the selection, both departments considered the three major American manufacturers. After reviewing basic specifications, the Chevrolet Tahoe was removed from consideration based on overall size and base price. On September 21, 2021, a comparison between the Ford Explorer and the Dodge Durango was conducted at the Police Regional Training Center. Both units were driven by Police Department staff and feedback was given that the Dodge Durango was more comfortable, provided better handling, and included more standard features. Once delivered, the new SUV’s will be equipped with emergency lighting, prisoner restraint systems, and safety equipment to complete the vehicle. This upfit contract will be submitted for Council approval in January 2023.
The Dodge Durango is powered by a conventional gasoline combustion engine which has an estimated combined fuel economy rating of 21 miles per gallon, versus 19 for the outgoing Ford Explorer. The Durango meets the latest vehicle emissions standard set by the California Air Resource Board and complies with all safety standards required for a vehicle of this class. Hybrid or electrical powertrains are not offered by Dodge for marked patrol pursuit rated vehicles. Although, hybrid or electric powertrains are not included in this purchase, the Police Department plans to purchase hybrid vehicles for non-marked patrol purposes as required by the Administration in FY2023.
The Patrol units are on an eight year or 100,000-mile replacement schedule which has been established by the Fleet Management Division as the optimum replacement time. Of the active 397 units, 25 have been identified for replacement as they are over this limit by age or mileage. The Department of Transportation recommends this purchase based on the replacement schedule and the needs of the Police Department.
On September 29, 2022, Council approved a purchase contract for 80 Dodge Durango’s from 72 HOUR LLC. If the change order is approved, this contract will be increased by an additional 25 units and $1,131,160. This increase represents a 31.25% increase to the existing contract which requires Council approval. This price includes delivery and local sales tax at 8.35%. The Purchasing Division has approved this change order and recommends Council to approve. The City Attorney’s Office has reviewed and approved to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the award of this contract does not qualify as a project.
LOCAL PREFERENCE
Local preference is not applicable to this award. This item is approving a change order to an existing contract.
FISCAL IMPACT
The City intends to finance the 25 marked patrol vehicles through the City’s Master Equipment Lease Purchase Agreement with annual debt service payment not to exceed $470,000 with the first payment of approximately $235,000 due in FY2023. The lease payment will be funded with the Police Department’s existing FY2023 budget appropriations.
Attachments:
Contract 32300123