Report Prepared by: Wally Broughton, Public Works Manager - Operations
Title
SUBJECT: Authorization to Purchase Two New Dodge Chargers from Razzari Ford for Replacement Police Department Patrol Vehicles in the Not-to-Exceed Amount of $62,000, and to Install Necessary Emergency Equipment and Retrofit of the vehicles by Emergency Vehicle Outfitters in the Not-to-Exceed Amount of $32,000; and, Approval of an Appropriation of $94,000 from the Fleet Capital Replacement Fund for the Purchases and Retrofitting Expenses and Authorization to Accept Insurance Reimbursement Revenue from McLarens Insurance for the Fleet Capital Replacement Fund in the Estimated Amount of $84,000
REPORT IN BRIEF
Considers authorizing the purchase and retrofit of two new Dodge Chargers in the not-to-exceed amount of $94,000 to replace two police patrol vehicles that were deemed total losses as a result of traffic collisions with an estimated $84,000 in insurance reimbursement funding to be credited back to the Fleet Capital Replacement fund when received.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the purchase of two Dodge Chargers from Razzari Ford in the not-to-exceed amount of $62,000 and the installation of emergency equipment and retrofitting by Emergency Vehicle Outfitters in the not-to-exceed amount of $32,000; and,
B. Appropriating $94,000 from Fund 674 - Fleet Capital Replacement for the purchases; and,
C. Accepting insurance reimbursement revenue of $84,000 (estimated amount) from McLaren’s Insurance and crediting Fund 674- Fleet Capital Replacement upon receipt; and,
D. Authorizing the City Manager or the Assistant City Manager to execute any necessary documents and the Finance Officer to make the appropriate budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Title 3, Article III of the Merced Municipal Code, purchases over twenty five thousand dollars.
CITY COUNCIL PRIORITIES
As provided for in the FY 2018/19 Council Priorities under Operational Sustainability.
DISCUSSION
Fleet Services is requesting approval from Council to appropriate $62,000 from the Fleet Capital Replacement fund to purchase two new 2019 Dodge Charger Police sedans from our local dealer, Razzari Dodge, who recently was awarded the bid for six new units through our regular replacement schedule. The two additional vehicles are replacing one Chevrolet Caprice Police Patrol car and one Crown Victoria that were completely totaled during recent vehicle accidents. The City’s insurance will reimburse the City for the wrecked vehicles, less a $5,000 deductible for each; however, insurance stipulations require the City to make the purchase first before a reimbursement can be processed. Staff requests that the insurance reimbursement be credited back to the Fund 674 - Fleet Capital Replacement once received.
Chevrolet stopped making the Caprice Police vehicle in 2017 and Ford stopped producing the Crown Victoria in 2011. The equipment in these vehicles are vehicle specific, from the ballistic door panels to the barrier that separates the officer from the rear seat passenger, therefore it is necessary to purchase up-fitting equipment that is specific to the Dodge Charger at the price of $16,000 each. This amount will also be reimbursed by McLaren’s Insurance.
History
Through the years, City Council has approved fund appropriation from the replacement fund to cover the upfront cost of vehicle replacement for vehicles that have been damaged beyond repair as deemed by McLaren’s Insurance and their appraiser. Once the City of Merced receives the vehicles, invoices are submitted to McLaren’s Insurance for reimbursement, minus $5,000 each for the deductible.
IMPACT ON CITY RESOURCES
An appropriation of $94,000 from Fund 674 - Fleet Capital Replacement is needed to purchase two new vehicles and up-fitting equipment. The Fleet Capital Replacement Fund will be credited back once the insurance reimbursement for the two wrecked police vehicles is received.
ATTACHMENTS
1. Dodge Charger 2019 Bid
2. PD Retrofit Gear