HomeMy WebLinkAbout11/19/2002, C4 - UNSCHEDULED REPLACEMENT OF A GENERAL-PURPOSE POLICE SEDAN I ' ti
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C I T Y OF SAN LUIS OB IS PO
FROM: Michael D. McCluskey,Public Works DirectAQNI /
Prepared By: Ron Holstine,Fleet Supervisor R
SUBJECT: UNSCHEDULED REPLACEMENT OF A GENERAL-PURPOSE
POLICE SEDAN
CAO RECOMMENDATIONS:
1. Approve replacement of one damaged general-purpose police sedan with one used general-
purpose sedan
2. Appropriate $20,000 from the unappropriated balance of the Fleet Replacement Fund for this
procurement
DISCUSSION
Vehicle No. 9708, a general-purpose sedan used by Police Department for administrative and
undercover work, has transmission damage that has forced it out of service. The estimated repair
cost is $2,100, but the vehicle will only be worth $2,300 after it is repaired. Because this vehicle
has passed its mileage target and was scheduled for replacement in 2003-04 anyway, Public Works
is recommending that it be replaced now with a used general-purpose sedan.
Background
Information on the vehicle to be replaced and declared surplus:
Year: 1997
M_ _ake and Model: Pontiac Bonneville
Description: General-Purpose Sedan
City Vehicle Number: 9708
Department: Police
Program: Police Administration
Acquisition Year: _1997-98
Maintenance Cost to Date: $4,818
Scheduled Replacement Year: 2003-04
Recommended Replacement Year: 2002-03
Estimated Replacement Price:_ $18,000
Original Acquisition Price: $_21,196
Estimated Surplus Value: $300
Mileage Target Before Replacement: 80,000
Current Odometer Reading._ 97,348
Age Target Before Replacement: 7 Years
Current Age: 6 Years
C1 -I
Council Agenda Report—Unscheduled Replacement of a General-Purpose Police Sedan
Page 2
Buying a Used Vehicle
Police Department has found that it needs general-purpose sedans with the following properties:
1. Makes and models not typically specified for fleet use along with moderate exterior trim
levels so the sedans do not stand out as stripped-down government vehicles. This is impor-
tant because these cars are often pressed into service for detective or undercover work.
2. Large interior capacities with plenty of seat width and legroom in the rear. This is important
because these cars must occasionally respond to emergencies carrying four fully equipped
patrol officers.
3. Comfort features like electrically powered, fully adjustable driver seats; tilt steering wheels;
and cruise control. This is important because these cars are often driven long distances out of
town for training and investigation activities.
To meet these three criteria and be within budget, Public Works prefers to buy used cars. Recent
research has shown that this is a common practice in California cities when replacing similar
police vehicles.
Although the City's existing policy (in Finance Management Manual Section 405) is to buy used
vehicles through dealers who sell used rental vehicles for major rental companies, there have
been two disadvantages with using this procedure in the past:
1. Prices have tended to be at the high end of the retail range, above what is commonly referred
to as "high blue book" value
2. Long-term reliability has been dubious because of the effects of multiple drivers and hard
rental service
To avoid these problems and, particularly, to find a vehicle in excellent overall condition with
relatively low mileage and a reasonable price, Public Works recommends deviating from the
specified procedure for this procurement. Rather than using a used vehicle dealer, Public Works
will ask a local auto broker to find a suitable vehicle at auction. This alternative procedure
avoids high dealer markups and allows purchases of vehicles from leased corporate fleets. Such
vehicles are usually in better shape than rental vehicles because they have typically had only one
driver and have been subject to strict lease conditions regarding condition and mileage at the end
of the lease. Sales price equals the auction price plus a$500 broker fee per vehicle.
CONCURRENCES
Police Department concurs with the recommendations of this report.
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Council Agenda Report—Unscheduled Replacement of a General-Purpose Police Sedan
Page 3
FISCAL IMPACT
Estimated Vehicle Cost $18,200
Estimated Cost of Labor to Change over Special Equipment 800
Contingencies 1,000
Budget Needed
Public Works is recommending an appropriation of$20,000 from the unappropriated balance of
the Fleet Replacement Fund for this procurement. The current unappropriated balance in the
Fleet Replacement Fund is $637,100.
I:\Council Agenda Reports\2002 agenda reports\CAR 90057 Unscheduled Replacement of Police Sedan