2021 2:00:00 PM

Meeting Link: https://zoom.us/j/97040001645
Meeting Dial-in #: 1-669-900-6833 Meeting ID: 97040001645

General Business: 9.1

Title: Consideration, discussion, and possible ratification of the City Manager’s approval of an expenditure of $352,774.26 to purchase six police vehicles upfitted by Defender Supply Co. from Champion Chevrolet as part of the FY 2021 CIP, utilizing the joinder bid from the State of Nevada vehicle contract #99SWC-NV19-2037.

Petitioner/Presenter: John A. Martini, P.E., Assistant City Manager/Mark Anderson, Assistant Public Works Manager

Recommendation: Staff recommends that Council ratify the City Manager’s approval of the expenditure of $352,774.26 to purchase six police vehicles.

Financial Impact: Six police vehicles in the amount of $352,774.26. $441,000.00 was approved for programs # 21-7500A thru F in the FY2021 Motor Vehicle Fund 1702 and $1,957,500.00 of budget authority is currently available.

Total Costs: $441,000.00

Fund: Motor Vehicle Maintenance Account: 604080
Program: 1702 Vehicle & Equip Replacement Plan_Vehicle #223H Replace with TAHOE PPV 2WD (21-7500A)
Amount: $73,500.00 Budget Status: Budget Exists

Fund: Motor Vehicle Maintenance Account: 604080
Program: 1702 Vehicle & Equip Replacement Plan_Vehicle #2300 Replace with TAHOE PPV 4WD (21-7500B)
Amount: $73,500.00 Budget Status: Budget Exists

Fund: Motor Vehicle Maintenance Account: 604080
Program: 1702 Vehicle & Equip Replacement Plan_Vehicle #2407 Replace with TAHOE PPV 4WD (21-7500C)
Amount: $73,500.00 Budget Status: Budget Exists

Fund: Motor Vehicle Maintenance Account: 604080
Program: 1702 Vehicle & Equip Replacement Plan_Vehicle #2301 Replace with TAHOE PPV 2WD (21-7500D)
Amount: $73,500.00 Budget Status: Budget Exists

Fund: Motor Vehicle Maintenance Account: 604080
Program: 1702 Vehicle & Equip Replacement Plan_Vehicle #2302 Replace with TAHOE PPV 4WD (21-7500E)
Amount: $73,500.00 Budget Status: Budget Exists

Fund: Motor Vehicle Maintenance Account: 604080
Program: 1702 Vehicle & Equip Replacement Plan_Vehicle #2205 Replace with TAHOE PPV 2WD (21-7500F)
Amount: $73,500.00 Budget Status: Budget Exists

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief:

Staff is requesting that the City Council ratify the City Manager’s approval of an expenditure of $352,774.26 to purchase six police vehicles. Due to the supply chain interruptions caused by the COVID-19 pandemic, the availability of vehicles to purchase for the Police Department has been compromised. Fleet Services was able to locate six vehicles needed for the FY2021 vehicle replacement program that were available only on a “first-come, first-served” basis. As time was of the essence to secure the vehicles for the Police fleet, the City Manager approved purchasing the vehicles on February 2, 2021, and a purchase order was issued on February 3, 2021. $441,000.00 was approved for purchasing police vehicles in the FY2021 Motor Vehicle Fund and $441,000.00 of budget authority was available. Staff recommends ratification of the purchase.

Background:

The global pandemic is creating issues with supply chains in the vehicle manufacturing process. Currently, most automakers are experiencing difficulties locating computer chips and other components used to manufacture new vehicles. The City delayed its 2021 vehicle replacement process in preparation for potential budget shortfalls. When the funds were released in December 2020, staff began trying to source the vehicles, but Chevrolet had paused production of the Tahoe Police Patrol Vehicle (Tahoe PPV) and has not given any indication when production will resume.

Fleet Services staff searched for any available police vehicles that met the specifications required by our Police Department and found an upfitting company in Texas, Defender Supply Co. (Defender), that had vehicles available on their lot from canceled orders but would only sell them on a “first-come, first-served” basis. Staff presented this information to the City Manager on February 2, 2021. As time was of the essence to secure the vehicles for the Police fleet, the City Manager approved purchasing the vehicles. Although this process is unusual, the steps were necessary to secure the vehicles given existing supply shortages and Defender's sales terms. Chevrolet will likely have continuing delays due to supply issues and production of the Tahoe PPV is not expected to resume until late 2021.

Five of the vehicles being replaced are at the end of their service life and Fleet staff is routinely repairing items to ensure their availability. The sixth vehicle has been removed from service and is no longer available to Police staff due to an accident.

Fleet Services worked with the City's local vendor, Champion Chevrolet, to acquire the vehicles. The six vehicles that have been purchased meet the specifications required by Sparks Police Department.

The City utilized the “joinder” provision allowed under NRS 332.195. Specifically, the City utilized State of Nevada contract #99SWC-NV19-2037 to purchase the vehicles. Joining this contract allows the City to obtain high-quality products while leveraging the contract's prices to the City’s benefit.

Analysis:

Section 2.25.130 of the Sparks Municipal Code (SMC) grants the City manager authority to approve emergency procurements due to 1) the results of a natural disaster or 2) in circumstances where the health, safety or welfare of the public may be impaired if not immediately addressed. Due to the COVID-19 pandemic, the manufacture of vehicles has been adversely affected by supply chain interruptions and police patrol vehicles are in short supply. A reduction of police patrol vehicles in the City’s fleet presents a clear and present threat to the health, safety, and welfare of the public. As such, the City Manager’s approval to purchase six new police vehicles conforms to the requirements set forth in SMC 2.25.130, subject to ratification by the City Council.

Alternatives:

Council may ratify the City Manager's approval of the purchase.
Council may decline to ratify the City Manager's approval of the purchase and provide direction to the City Manager.

Recommended Motion:

I move the ratify City Manager’s approval of an expenditure of $352,774.26 to purchase six police vehicles upfitted by Defender Supply Co. from Champion Chevrolet as part of the FY 2021 CIP, utilizing the joinder bid from the State of Nevada vehicle contract #99SWC-NV19-2037.

Attached Files:

01-Champion Chevrolet Quote.pdf

02-Champion Chevrolet PO 100021666.pdf

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