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ITEM 20 |
City Council Memorandum Facilities and Fleet Memo No. N/A
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Date: |
August 18, 2022 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Dawn Lang, Deputy City Manager - CFO |
From: |
Mike Hollingsworth, Facilities & Fleet Manager |
Subject: |
Purchase of Vehicles and Vehicle Dealer Up-fitting |
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Proposed Motion: |
Move City Council approve the purchase of vehicles and dealer upfitting, using multiple vendors under State of Arizona contracts, in an amount not to exceed $3,475,000, and authorize the transfer of $285,957 from General Fund Contingency to the Vehicle Replacement Fund and General Fund to cover anticipated market price fluctuations for these purchases. |
Background/Discussion: |
Due to the long lead time for vehicles in today's market, a thorough analysis has been completed in collaboration with the Fleet Advisory Committee to identify all replacement and new vehicles needed in FY 2022-23 and ensure orders are placed early. For vehicle replacements, a total of 62 vehicles were evaluated in the Vehicle Replacement Fund across all City departments, with 41 recommended based on cost to maintain, condition, and mileage. For new vehicles, included in the recommendation are one (1) alternative fuel hybrid vehicle for shared use in the Citywide Motor Pool and 20 vehicles approved by City Council through budget decision packages. These new vehicles include the following: Park Operations Division - four (4) trucks for athletic fields groundskeepers; Buildings & Facilities Division - three (3) trucks for facility maintenance positions; Public Works & Utilities Department, Capital Projects Division - two (2) vehicles for construction project manager positions; Fire Department - two (2) vehicles for fire prevention/inspection and one (1) vehicle for emergency medical services (EMS) support; and Police Department - eight (8) vehicles for various public safety purposes. The recommended vehicle purchases can also be summarized by function as follows: - Public Safety: 81%, or $2.8M, for 42 vehicles - Utility/Special Purpose: 18%, or $637K, for 19 vehicles - Citywide Motor Pool: 1%, or $38.5K, for 1 vehicle Overall, 62 vehicles are included in this request at a total cost of $3,475,000, which includes updated vehicle purchase prices, estimated dealer upfitting, and a 8% contingency to cover cost fluctuations in rapidly-changing market conditions. Please note that not all necessary vehicle upfitting is included in this memo; a subsequent memo for the remaining upfitting services will be scheduled for City Council action when ready. |
Evaluation: |
The State of Arizona competitively solicited and awarded contracts for the purchase of vehicles. The City has a current Intergovernmental Agreement with the State of Arizona allowing for the cooperative use of State contracts. For these vehicles, the use of State contract is advantageous because it offers the ability to work with contracted vendors to develop vehicle and up-fitting specifications for the more complicated requirements of trucks, and the ability to choose specific vehicles when required for certain applications. |
Financial Implications: |
(41) vehicles will be purchased through the Vehicle Replacement Fund 404 from the following cost centers: Police Department Field Operations Cost Center – 31 vehicles Solid Waste Services Cost Center – 2 vehicles Water Distribution Cost Center – 1 vehicle Water Systems Maintenance Cost Center – 1 vehicle Wastewater Collection Cost Center – 4 vehicles Ocotillo Brine Reduction Facility Cost Center – 1 vehicle Recreation Cost Center – 1 vehicle (20) vehicles will be purchased from Council-approved decision packages through the General Fund 101 from the following cost centers: Police Department Field Operations Cost Center – 2 vehicles Police Department Operational Support Cost Center – 6 vehicles Fire Admin Cost Center – 1 vehicle Prevention and Preparedness Cost Center – 2 vehicles Capital Projects Cost Center – 2 vehicles Buildings and Facilities Cost Center – 3 vehicles Park Development & Operations Cost Center – 4 vehicles (1) alternative fuel hybrid vehicle will be purchased from the General Fund, Fleet Services Cost Center (Motor Pool and Center for the Arts van). A transfer will be needed from General Fund Contingency of $285,957 to the Vehicle Replacement Fund and General Fund to cover anticipated market fluctuations for these purchases. |
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Fiscal Impact |
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