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05 Staff Report.Vehicle BuildsNew PREPARED BY: Jim Harbin Superintendent Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Director of Parks and Public Works 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 09/19/2023 ITEM NO: 5 DATE: September 6, 2023 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Actions Related to Police Vehicles: a. Authorize the Town Manager to Execute a Purchase Order with Lehr to Fit Up Three Police Vehicles in an Amount not to Exceed $66,615; and b. Authorize an Expenditure Budget Adjustment in and Amount of $66,615 from the Available Equipment Replacement Fund RECOMMENDATION: Actions related to Police Vehicles: a. Authorize the Town Manager to execute a purchase order with Lehr to fit up three police vehicles in an amount not to exceed $66,615 (Attachment 1). b. Authorize an expenditure budget adjustment in an amount of $66,615 from the available Equipment Replacement Fund. BACKGROUND: The Town’s Equipment Replacement Fund provides funding for the replacement of vehicles that meet certain replacement criteria. The Town amortizes a vehicle’s replacement cost over its forecasted life and sets funds aside on an annual basis to ensure the Equipment Replacement Fund has sufficient resources for the timely replacement of vehicles. Fleet vehicle replacement purchases are reviewed annually through the Operating Budget development process. Three Police Department vehicle assets were recommended for replacement and funded in the Fiscal Year (FY) 2022/23 Operating Budget. The replacement funding includes both the purchase of the vehicle and the “fit-up” of the vehicle to meet the specialized needs of the end user. PAGE 2 OF 2 SUBJECT: Authorize the Town Manager to Execute a Purchase Order and Authorize a Expenditure Budget Adjustment in an Amount of $66,615 DATE: September 6, 2023 DISCUSSION: Three vehicles (two 2023 Chevy Tahoes and one Honda Accord) were purchased before June 30, 2023, but fit up was not completed before the end of the fiscal year. Since the fit-up of these three vehicles was budgeted in FY 2022/23, it was not budgeted for in FY 2023/24, necessitating this request for funding. It is common practice to procure the vehicles from a traditional dealer and then send them for specialized fit up. Lehr is a California-based supplier and installer of emergency vehicle equipment, with nearby facilities in Hollister and Pittsburg. Their particular expertise is in fit up for police vehicles. While there are other providers, Lehr is located the closest and is the most experienced. The Town’s purchasing policy authorizes a “single source” purchase without competitive bidding under these circumstances. The single source purchase of these police vehicle fit ups is based on a formal bid recently obtained by the County of Placer, which demonstrates that the Town is receiving the lowest price possible (Attachment 2). Using the pricing quoted to Placer County, Lehr quoted the Town of Los Gatos a total of $66,615 for the required services. CONCLUSION: The requested Council action would allow Parks and Public Works to proceed with preparing the three vehicles for Police Department use. The Equipment Replacement Fund is a dedicated resource for these specific expenses. COORDINATION: This memorandum was coordinated with the Town Attorney, Town Manager, and Finance Director. FISCAL IMPACT: There are sufficient funds available in the Equipment Replacement Fund for the requested expenditure budget adjustment. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachments: 1. Quotes 2. County of Placer Supplier Contract