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SR 10-23-2018 3A City Council Report City Council Meeting: October 23, 2018 Agenda Item: 3.A 1 of 5 To: Mayor and City Council From: Susan Cline, Director, Public Works, Street & Fleet Services Subject: Award Bid for the Purchase of up to 20 BMW Motorcycles for the Police Department Recommended Action Staff recommends that the City Council: 1. Authorize the Purchasing Services Manager to issue a purchase order with Long Beach BMW Motorcycles, a California-based company, for the purchase and delivery of up to nine BMW Police motorcycles for the Public Works Department in FY 2018-19 as part of an existing contract with the City of San Diego. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.080(b), as competitive bidding has already occurred. The award is for a total amount not to exceed $283,597, with future year funding contingent on Council budget approval. 2. Authorize the Purchasing Services Manager to issue any necessary change orders to the purchase order for the purchase of 11 additional BMW Police motorcycles through the life of the City of San Diego contract expiring on June 20, 2019, with four one-year extension options through June 20, 2023, to replace up to five motorcycles damaged beyond repair during the course of Police Department activities and another six motorcycles that will be up fo r replacement in FY 2021-22, for an additional amount not to exceed $363,119, resulting in a total amount not to exceed $646,716, with future year funding contingent on Council budget approval. Summary The Santa Monica Police Department uses 17 BMW motorcycles for a variety of duties including emergency response, patrol, pursuit, and traffic enforcement. Nine are scheduled for replacement in FY 2018-19, with another six motorcycles requiring replacement in FY 2021-22. In addition, five more motorcycles are being requested to replace units that may be potentially damaged beyond repair during police activities. Staff recommends purchasing replacement BMW motorcycles from Long Beach BMW Motorcycles. This would be done as an exemption to the City’s competitive process, 2 of 5 leveraging a contract between the City of San Diego and Long Beach BMW following competitive process (bid number 10089355-18-Y). Discussion The City replaces vehicles that have reached the end of their cost -effective useful life based on age, mileage, and repair history in accordance with the Vehicle Replacement Program. Currently, the Police Department has a total of 17 motorcycles, 15 of which are production motorcycles used in day-to-day operations and two of which are reserve motorcycles used for training purposes. This purchase would replace nine motorcycles for the Police Department in FY 2018-19 that have reached the end of their cost- effective useful lives and allow staff to replace an additional six motorcycles due for replacement in 2021-22. The agreement would also allow for the purchase of five replacement motorcycles in the event of damage. Future purchases would be contingent upon the City of San Diego maintaining its contract with the Long Beach BMW through June 20, 2023. The Police Department’s motorcycles have a useful life of five years. The nine motorcycles that would be replaced are listed in the vehicle data table below, which shows the vehicle unit number, model year, age, original cost, total maintenance cost over the life of the vehicle, and the percentage of the original cost that the maintenance cost has reached. Unit # Year Age Original Cost Total Maintenance Cost % Maintenance Cost to Original Cost 20252 2012 6 $26,060 $47,112 181% 20255 2013 5 $26,060 $32,879 126% 20256 2013 5 $26,060 $25,043 96% 20257 2013 5 $26,060 $22,970 88% 20258 2013 5 $26,060 $13,419 51% 20295 2013 5 $29,949 $24,282 81% 20296 2013 5 $29,949 $14,736 49% 20297 2013 5 $29,949 $15,708 52% 20298 2013 5 $29,949 $22,047 74% 3 of 5 On June 21, 2018, the City of San Diego awarded bid 10089355-18-Y to Long Beach BMW Motorcycles to supply BMW Police motorcycles over the course of one year, with an option to extend the contract for four additional one -year periods through June 20, 2023, for a total not to exceed $3,000,000 over five years. The Santa Monica Police Department has an additional six motorcycles that will be due for replacement in FY 2021-22, which could also be purchased under this contract if the City of San Dieg o chooses to exercise their extension options. Police Department staff opted to switch to the Honda Police motorcycle in 2013 to reduce the total cost of ownership. The Honda motorcycle is not purpose-built like the BMW Police motorcycle, and that manifested itself over the course of the last five years as the Honda motorcycles have proven to be less reliable than the BMW counterpart. The BMW Police motorcycle is a purpose-built motorcycle designed specifically for law enforcement and has been widely adopted as a standard motorcycle by law enforcement agencies throughout the nation due to its design, safety rating and flexibility for various assignments and purposes. Therefore, the BMW Police motorcycle was selected as the standard motorcycle for the Santa Monica Police Department to replace the remaining inventory of Honda motorcycles. The last solicitation for the purchase of BMW Police motorcycles in 2007 yielded one bid, also from Long Beach BMW Motorcycles. Fleet Management continues to strive to meet the goals of the Sustainable City Plan and purchase electric vehicles whenever possible. Although there is currently an electric motorcycle option available on the market at this time, Police staff tested the Zero Electric Motorcycle and found the battery range to be insufficient to accommodate their needs. The Police Department utilizes an on-board camera system, mobile radio, GPS tracker, and emergency warning equipment. A police officer can be deployed in the field for 12 or more hours during a single shift. During testing, the Police Department discovered that the use of the electric motorcycle would require officers to spend time charging the motorcycle mid-shift. As emergency vehicles, these gasoline-powered motorcycles are exempt from the City’s Sustainable Fleet Policy for reduced emissions and sustainability. The Police Department has incorporated an all-electric fleet for their parking enforcement operation. 4 of 5 Vendor/Consultant Selection Exception to Competitive Bidding b. Item was already competitively bid by another governmental agency or is part of cooperative purchasing with another agency, where item or services are supplied at same price or better. Staff recommends Long Beach BMW Motorcycles to furnish and deliver up to 20 BMW Police motorcycles as an exception to competitive bidding per Municipal Code 2.24.080(b). The BMW Police motorcycle was already competitively bid by the City of San Diego and awarded to Long Beach BMW Motorcycles under bid number 10089355- 18-Y, which is valid until June 19, 2019, with an option to extend for four additional one- year terms. Staff recommends utilizing this process to obtain the most competitive pricing, expedite vehicle purchases, and ensure that vehicle specifications match those that have already been specifically developed for and utilized by law enforcement and emergency response agencies. Using the City of San Diego’s bid allows the City to obtain the most competitive price through a previously conducted governmental agency bid. If Santa Monica were to conduct its own formal bid, staff estimates it would take approximately nine months to complete, utilizing significant staff time and resources. Financial Impacts and Budget Actions Staff seeks authority to award a purchase order with Long Beach BMW Motorcycles to furnish and deliver up to 20 BMW Police motorcycles. Purchase Order Request Request Amount FY 2018-19 Budget CIP Account # Total Purchase Order Amount $283,597 C7000010.689000 $646,716 Future year funding is contingent on Council budget approval. Prepared By: Ryan Kraemer, Senior Administrative Analyst Approved Forwarded to Council 5 of 5 Attachments: A. Long Beach BMW Motorcycles Oaks Initiative Form