Report Prepared by: Lance Eber, Crime Analyst, Police Department
Title
SUBJECT: Adoption of a Resolution Authorizing the Merced Police Department to Apply for a Grant in the Amount of $80,000 Through the San Joaquin Valley Air Pollution Control District’s Public Benefit Grants Program to Purchase Four Electric Vehicles and Approval to Accept the Grant Funding if Awarded and Waive the Competitive Bid Process and Approve Purchases Exceeding $37,000 Per Vehicle
REPORT IN BRIEF
Considers adopting a Resolution to authorize the Merced Police Department (MPD) to apply for grant funding and accept grant funding if awarded in the amount of $80,000 from the San Joaquin Valley Air Pollution Control District (SJVAPCD) to reimburse the City for the purchase of four electric vehicles.
RECOMMENDATION
City Council - Adopt a motion:
A. Adopting Resolution 2024-37, A Resolution of the City Council of the City of Merced, California, to apply for grant funding and accept grant funding, if awarded, in the amount of $80,000 from the San Joaquin Valley Air Pollution Control District’s Public Benefit Grants Program; and,
B. Authorizing the City Manager to execute necessary documents to apply for the grant funding; and,
If awarded,
C. Accepting the grant award and appropriating in Fund 1000-General Fund, Police Operation Division and Fire Operations Division; and,
D. Approving a supplemental appropriation in Fund 7006-Fleet Replacement Fund in the amount of $53,341 plus 10% contingency of the total Fire purchase amount if needed; and,
E. Approving the use of pooled cash until reimbursement from the grant is received; and,
F. Waiving the competitive bid process to use local vendor for the purchases; and,
G. Authorizing the purchase of the four vehicles in the amount of $190,800.67 plus 10% contingency; and,
H. Authorizing the City Manager to execute the necessary documents to accept the grant funding if awarded; and,
I. Authorizing the Finance Officer to make the necessary budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommended by Staff; or,
2. Deny; or,
3. Refer back to Staff for reconsideration of specific items.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2023-24 Adopted Budget.
DISCUSSION
Background
The Merced Police Department (MPD) applied for this grant funding from the SJVAPD in fiscal year 2017/18 and 2022/23 and was awarded funding in each of those applications.
Description
The MPD would like to submit a grant application to the SJVAPCD to purchase several electric vehicles. This incentive program provides funding for the purchase of new alternative fueled vehicles (Electric, Plug-In Hybrid, CNG, LNG, LPG, etc.) for public agencies to promote clean air alternative-fuel technologies and the use of low- or zero-emission vehicles in public fleets. Applications for this component are accepted on a first-come, first-served basis with the allowance of one application per calendar year.
Maximum funding is up to $20,000 per vehicle, with a limit of $100,000 per agency per year.
The MPD application would include these items:
(1) Ford Mustang Mach-E (Police) = $50,567.44
(1) Ford Mustang Mach-E (Police) = $46,892.35
(1) Ford Escape (Fire) = $46,670.44
(1) Ford Escape (Fire) = $46,670.44
TOTAL REQUEST = $190,800.67
Match Amount = $-0-
The grant covers $20,000 maximum per vehicle. The City will need to cover the excess purchase price of the vehicles:
Actual Cost = $190,800.67
Grant = $ 80,000.00
City = $110,800.67
Total cost to the City will be $110,800.67 with 42% of the cost covered by the grant in the amount of $80,000.
For the two vehicles for the Police Department, the City will use $57,460 from the General Fund salary savings in the Police Department budget to cover the overage beyond $40,000 ($20,000 per vehicle).
For the two vehicles for the Police Department, the (2) Ford Mustang Mach-Es will be assigned to Administrative staff. Their currently assigned vehicles (Ford Explorers) will be reassigned to Patrol. This will allow (2) Chevrolet Caprices to be replaced and phased out of the MPD fleet of patrol vehicles.
For the two vehicles for the Fire Department, the City is awaiting an insurance settlement to cover the $53,341 overage beyond $40,000 ($20,000 per vehicle). The Fire Department will use Fleet Replacement funds to cover the overage beyond $20,000 per vehicle. Once the insurance settlement is received it will go back to the Fleet Replacement Fund.
For the two vehicles for the Fire Department, the (2) Ford Escapes will replace vehicles currently assigned to their Fire Prevention Unit.
All four vehicles are currently on the lot of the local auto dealership. The vehicles do not need to be ordered. The competitive bid process is waived based on a previous City Council Resolution for direct lot purchasing. If any of the four (4) vehicles are sold prior to grant funds being awarded and/or prior to purchase orders being issued, then the Police and Fire Departments will go out to bid for their respective vehicles according to City of Merced purchasing guideline.
City funds are first expended by the respective departments to purchase the vehicles, and then requests for reimbursement are submitted to the Grantor as expenses are incurred and subsequently paid in full.
IMPACT ON CITY RESOURCES
Staff is requesting Council approval for the MPD to apply for the grant funding and accept the grant award if awarded, increase the revenue budget in the Police and Fire Departments in the amount of $40,000 each and appropriate the same; and allow the use of pooled cash until reimbursement from the grant is received. City cost would be $110,800.67 which exceeds the $80,000 in grant funds. This extra cost will be covered within the FY 2023/24 salary savings, fleet replacement funds and/or insurance settlement. Without grant funding, the equipment described in this grant would not get purchased.
ATTACHMENTS
1. Resolution 2024-37