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ITEM 22 |
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City Council Memorandum Facilities and Fleet Memo No. N/A
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| Date: |
October 14, 2024 |
| To: |
Mayor and Council |
| Thru: |
Joshua H. Wright, City Manager
Dawn Lang, Deputy City Manager - CFO |
| From: |
Mike Hollingsworth, Facility & Fleet Services Senior Manager |
| Subject: |
Purchase of Vehicles and Upfitting |
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| Proposed Motion: |
| Move City Council approve the purchase of vehicles and upfitting, using multiple vendors under State of Arizona contracts, in a combined amount not to exceed $4,314,940. |
| Background/Discussion: |
Each year the Fleet Division, in collaboration with the Fleet Advisory Committee (FAC) which is made up of representatives from each department, completes a thorough review of needed vehicle replacements. Vehicle replacements are funded through a Vehicle Replacement Fund that is supported by annual contributions from operating budgets where the vehicle is used to ensure its future replacement. The city currently has just over 800 vehicles, with the vast majority (93%) being special purpose vehicles featuring upfitting for specific job/service uses. In addition, each year the acquisition of new vehicles is approved through the budget process and excludes large vehicular equipment (e.g. street sweepers, bucket trucks, fire engines, etc.).
A total of 86 vehicles were anticipated for replacement this fiscal year. To determine actual replacements, the Fleet Division used its software-based 15 Point Replacement Criteria Analysis, a systematic tool to decide replacements based on age, mileage and repair records (cost to maintain). This analysis narrowed the list down to 75 replacements. After additional discussions with the FAC and user departments and conducting further vehicle inspections, the actual vehicle replacement list includes 51 needed replacements through the Vehicle Replacement Fund across all departments.
Besides the 51 recommended replacement vehicles, this item includes six (6) new vehicles and one (1) trailer replacement approved through the FY 2024-25 budget process, for a grand total of 58 purchases. The Fleet Division and FAC also analyzed the required replacements for hybrid and/or electric options, resulting in 11 of the proposed vehicle purchases recommended as hybrids based on market availability and anticipated use. The recommended vehicles purchases can be summarized by function as follows: Police: 68%, or $2.9M, for 39 vehicles; Public Works and Utilities: 14%, or $605,000, for 7 vehicles; Fire: 9%, or $390,000, for 5 vehicles; Fleet: 1%, or $35,000, for 1 vehicle; Community Services: 6%, or $282,000 for 3 vehicles; Cultural Development: 1%, or $20,000, for 1 vehicle, CAPA: 1%, or $64,000, for 1 vehicle. These items include estimated vehicle purchases and the necessary vehicle upfitting. |
| Evaluation: |
| The State of Arizona competitively solicited and awarded contracts for the purchase of vehicles and dealer upfitting. The City has a current agreement with the State of Arizona allowing for the cooperative use of its contracts. For these vehicles, the use of these contracts is advantageous because it offers the ability to work with contracted vendors to develop vehicle specifications for the more complicated requirements of trucks and the ability to choose specific vehicles and upfitting when required for certain applications. |
| Financial Implications: |
| The city maintains a Vehicle Replacement Fund that allows for the ongoing replacement of citywide operating fleet vehicles, except those specially determined as capital and replaced through the CIP. Revenues to support this fund are generated through ongoing contributions from departments towards the future replacement costs of their operating fleet vehicles. The contribution comes from the fund that supports the operating activities, such as the General Fund, Water Fund, Wastewater Fund, Solid Waste Fund, and Airport Fund. New vehicle additions are budgeted with an estimated purchase price, as well as an ongoing contribution to the Vehicle Replacement Fund to support its future replacement, unless it has been determined to be purchased with a grant or in this case, opioid funds. |
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| Fiscal Impact |
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