REPORT TO THE CITY COUNCIL
March 26, 2015
FROM: BRIAN R. MARSHALL, Director
Department of Transportation
BY: JOSEPH AYERZA, Fleet Manager
Department of Transportation/Fleet Division
SUBJECT
Title
Award a purchase contract in the amount of $432,359 to Herwaldt Automotive for the purchase of BMW police motorcycles - Bid File 3377
Body
RECOMMENDATION
Staff recommends Council award a purchase contract in the amount of $432,359 for the purchase of 17 BMW police motorcycles.
EXECUTIVE SUMMARY
The Police Department is in need of 17 replacement motorcycles. Several motorcycles have exceeded their economic lifecycle. Replacement of these motorcycles is critical for the Police Department to effectively and efficiently provide traffic safety services within the City of Fresno. The fully assembled motorcycles will be delivered to the City and then be upfitted with a police radio, radar gun holder, and Fresno decals.
BACKGROUND
The Police Department is in need of 17 replacement motorcycles. Over the last few years poor economic conditions and tight budgets have required the extension of the service life for these units from 4 years to 7 or more years. Mileage at retirement has increased from approximately 50-60,000 miles to 65-80,000 miles. Though technology and manufacturing improvements have allowed the department to extend lifecycles, these improvements have not fully mitigated the increased costs associated with extended lifecycles. City staff has determined 17 units are in need of replacement based on accumulated years of service and/or miles. These units have far exceeded their economic life. Replacing the older motorcycles is critical for the Police Department to effectively and efficiently provide traffic safety services within the City of Fresno.
On September 15, 2014, the City Council approved the 5-year Lease Finance Agreement part B extension with Kansas State Bank in the amount of $3,635,600, which included funding to purchase Police Department motorcycles. The funding for the first of ten semi-annual payments for motorcycle purchases in the amount of $42,300 has been planned and approved in this year's current budget.
A competitive bid was prepared and distributed electronically via bids online. The motorcycle model referenced in the bid specification was a BMW R 1200 RTP, which has been the model utilized by the department for several years. The selection of the R 1200 RTP was based on the Police Department experience, as well as performance data derived from annual testing of law enforcement motorcycles performed by the Michigan State Police Department and LA County Sheriff's Department (attached). The test results show the BMW R 1200 RTP with the best overall rating in braking, acceleration, low noise, and ergonomics. These categories are critical for the Fresno Police Department. Seven (7) perspective proposers downloaded the bid information. Only one bid response from Herwaldt Automotive was received in a public opening on January 27, 2015. The proposal from Herwaldt Automotive was selected as a proposal that met the City's needs. This proposal was deemed both responsive and responsible; therefore, it was the low bidder. An investigation into the reason for only one bidder was performed. Responses varied: Long Beach BMW determined small sale margins combined with the City's local preference would not make it attractive for it to bid. Enforcement Motors of Hayden, Idaho, indicated though it could offer the BMW R 1200 RT-P, it would also have difficulty with low margins and local preference. Enforcement Motors offers a Yamaha model for police enforcement but is a non-OEM unit and is not evaluated by either the Michigan State Police or LA County Sheriff's Department; therefore, it was not considered. Additional calls were made to other BMW dealerships, and A&S Motorcycles of Sacramento indicated it no longer pursues fleet sales.
Mathews Harley Davidson of Fresno, California, offered the Harley Davidson FLHTP for consideration. The Harley Davidson FLHTP was not considered as an equivalent option due to the lower performance tests results from the Michigan State Police Vehicle Evaluation Model Year 2015. These results included braking, overall acceleration, and top speed. In all three of these categories the 2015 BMW scored higher than the FLHTP. The LA County Sheriff's Department Law Enforcement Motorcycle Test 2014 Model Year results were used for comparison. The engine/exhaust noise, radiant heat, fuel economy, and subjective ergonomics tests all showed the BMW scoring higher than the FLHTP. Overall braking performance in the LA County test results did show the FLHTP had slightly better results in two of the three braking categories than the BMW. Note this testing was performed on 2014 model year motorcycles and is the latest information available from LA County. Current results for the 2015 model year are not available from LA County.
Council may award a purchase contract to Herwaldt Automotive located in Fresno, California, for the amount of $432,359, or the Council may reject the proposal. If the proposal is rejected, the project will be re-bid resulting in a delay of approximately 60 days.
Staff recommends the City Council award a purchase contract in the amount of $432,358.88 to Herwaldt Automotive in Fresno, California, for the purchase of BMW police motorcycles.
ENVIRONMENTAL FINDINGS
This is not a "project" for the purpose of CEQA pursuant to CEQA Guidelines Section 15378.
LOCAL PREFERENCE
Local preference was used and the contract was awarded to a local dealer.
FISCAL IMPACT
The funding to cover the purchase cost of the police motorcycles has been included in the City's current approved Lease Financing Agreement part B with Kansas State Bank. The City will make an initial lease payment in FY15. Beginning in FY16 lease payments will be made twice per year at $42,300 each, or $84,600 annually. The interest rate for this financing is 3.389 percent. At the end of the 5-year lease agreement the motorcycles will be owned by the City.
Attachments:
Evaluation of Bid Proposals - BMW Police Motorcycles
Michigan State Police Vehicle Evaluation Model Year 2105
Los Angeles County Sheriff's Department Law Enforcement Motorcycle Test
and Evaluation Program 2014 Model Year
BMW Motorcycle Survey