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HomeMy WebLinkAbout12/07/1999, C11 - POLICE ADMINISTRATION SEDAN REPLACEMENT L council , aac En as Repout C 11 CITY OF SAN LUIS OBISPO FROM: Michael D. McCluskey, Public Works Directorvv-----., Prepared By: David Elliott, Administrative Analyst SUBJECT: Police Administration Sedan Replacement RECOMMENDATION 1) Authorize Police and Public Works employees to find a suitable used sedan to replace one existing Police administration sedan 2) Authorize procurement with City Administrative Officer approval DISCUSSION With approval of the 1999-01 Financial Plan, the Council authorized purchasing a used sedan in 1999-00 to replace City vehicles 9152, an existing Police administrative vehicle which is ready to be surplused. (See pages E4 and E-26.) When the Council reviewed the Capital Improvement Plan during budget hearings, it directed staff to defer replacing any general purpose vehicles (sedans, station wagons,minivans, sport utility vehicles, and light pickup trucks) until the existing fleet management policies had been reviewed and updated. It also left open the possibility that urgently needed replacements could proceed with Council approval. (Representatives from affected departments are in the process of examining and revising the fleet management policies and should have a report ready for Council review in January or February 2000.) Vehicle 9152 is a 1991 Ford Taurus used by primarily by the Student Neighborhood Assistance Program(SNAP). It has accumulated 99,552 miles and has become fairly unreliable and expensive to maintain. It has been disabled by four overheating incidents over the last 10 months and is using a quart of oil about every 500 miles. Although original acquisition cost was $13,500, maintenance cost since 1994(when Public Works took over maintenance from a private firm)has amounted to $7,770. Despite regular cosmetic maintenance, about one third of the top clear coat has peeled off, leaving an unsightly appearance. The prospect of continued unreliability and high repair expense has led Public Works to recommend that replacement not be deferred any longer. Replacement with only 100,000 miles on the odometer may at first seem premature,but typically these vehicles are driven on short,low speed trips in stop-and-go traffic—highly stressful conditions for most vehicle components. Also, with low speed trips City vehicles quickly accumulate operating hours disproportionate to the mileage indicated. For example, a City car driven at an average speed of 20 miles per hour with 100,000 miles on the odometer has about the same operating hours as a more typical car driven at an average speed of 40 miles per hour with 200,000 miles. As a result,drive train components in the City's general purposgI'M Council Agenda Report—Report Title Page 2 can be in a deteriorated condition with comparatively few miles showing. Continuing to operate these vehicles can result in expensive repairs to engines, transmissions, and differentials. Over a three or four year period, these repair costs can equal the net cost of replacement vehicles after accounting for resale proceeds. Section 405-0 of the Finance Management Manual authorizes selection of used vehicles from "established rental vehicle resale vendors". Invitations for sealed bids do not work well for this type of procurement because of the difficulty in preparing precise specifications. For this reason staff recommends approval of the following procedure: • Police and Public Works search the used vehicle marketplace and select a late model, low mileage,full-size sedan in excellent overall condition. (Police Department requires a full- size sedan so that it can be used as a patrol vehicle in emergencies.) • Public Works confirms that the vehicle is in excellent condition. • Public Works negotiates a purchase price, which is included in a written buyers order from the dealer. • Public Works prepares a payment voucher and submits it for CAO approval. • Public Works or Police picks up the vehicle from the dealer. This procedure has worked well for previous used vehicle procurements. FISCAL IMPACT Estimated procurement cost $19,500 Budgeted amount $20,000 C11-2