That the City Council authorize the City Manager to issue a purchase order in the amount of $138,150 from the Fleet Replacement Fund to Puente Hills Ford, City of Industry, California, for the purchase of three new Police administration vehicles to replace existing vehicles.

In Fiscal Year 2022-2023, the City Council approved funding for the purchase of one new Police administration vehicle as part of the proposed Fleet Replacement Budget.  Subsequently, the City Council authorized a purchase order for the vehicle on November 21, 2022, and City staff placed the order for the vehicle. However, due to disruptions in the auto manufacturing industry at the time, the order was delayed by approximately one year, and was subsequently canceled by the Ford Motor Company. Later, as part of the Fiscal Year 2023-2024 budget process, the City Council authorized funding for the purchase of two additional Police administration vehicles.

Although there has been improvement in the auto manufacturing industry, it is still a challenging environment to secure police vehicles. In order to obtain the three proposed new vehicles in a timely fashion, staff reached out to three Ford dealerships in the region for quotes on 2024 Ford Explorer XLT's. The dealerships included Puente Hills Ford, Watsonville Ford, and Performance Ford.
   

Dealership	Price
Puente Hills Ford	$42,000.00
Watsonville Ford	$43,700.00
Performance Ford	$49,890.88

The quote from Puente Hills Ford was the lowest bid received that meets the City's specifications and staff was advised that the vehicles can be delivered to the City immediately upon purchase. The requested purchase order also includes a warranty cost of $4,050 for each vehicle to provide an extended warranty of five years or 100,000 miles, with no deductible.

If approved by City Council, the three new 2024 Ford Explorer XLT police administration vehicles will be used to replace the vehicles listed below that are still currently in use.

Current police vehicles being recommended for replacement are:

The three police vehicles that are being recommended to be replaced meet their replacement criteria of at least four years of service and 90,000 miles. These three existing vehicles will be reassigned to another division inside the Police Department to replace older vehicles. Those older vehicles will either be reassigned to another department (if practical), salvaged for parts, or auctioned off. This internal reuse will help maintain a more updated overall fleet of police vehicles, with the goal of providing reliable vehicles and controlling maintenance costs.

The City Council approved and adopted the Fiscal Year 2022-2023 Fleet Replacement Budget cost center 177101-8916 (Vehicles) which included an allocation of $60,000 for one new police administration vehicle. The City Council also approved and adopted the Fiscal Year 2023-2024 Fleet Replacement Budget cost center 177101-8916 (Vehicles) which included an allocation of $170,000 for two new police administration vehicles, bringing the total amount of approved funding for the purchase of three new Police administrative vehicles to $230,000.

The $138,150 quote provided by Puente Hills Ford for the purchase of three new Police administration vehicles, along with extended warranties for each vehicle, is within the budgeted amounts previously approved and allocated by the City Council; therefore, there are sufficient funds in the Fleet Replacement Fund for the recommended purchase. The remaining budgeted funds for these vehicles will be used to purchase and install specific police equipment (i.e. emergency lighting, radios, computers, secure storage containers, etc.) in each vehicle after they are delivered. After each vehicle is fully equipped, any remaining unused budgeted funds will be released back to the Fleet Replacement fund balance for future budget appropriation by Council.