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CC 2016-01-12_09l Vehicle Exchange_Purchase FCFA MEMORANDUM TO: CITY COUNCIL FROM: STEVEN N. ANNIBALI, CHIEF OF POLICE SUBJECT: CONSIDERATION TO APPROVE A VEHICLE EXCHANGE / PURCHASE WITH THE FIVE CITIES FIRE AUTHORITY DATE: JANUARY 12, 2016 RECOMMENDATION: It is recommended that the City Council approve a vehicle exchange / purchase with the Five Cities Fire Authority. FINANCIAL IMPACT: There are no net costs to the City associated with this proposal. The two vehicles in question were declared surplus by the Council on July 28, 2015. The funds that will supplement the exchange are the result of the sale of additional vehicles in the Police Department that were also declared surplus on July 28, 2015. BACKGROUND: Council approved the introduction of municipal fleet leasing for the Police Department in June, 2008. Since that time, this cost effective program has been providing for both the patrol and the support staff fleet. The vehicles are routinely turned over every four years at the conclusion of each lease term. At that time, the vehicles, which now have become a city asset, are sold in order to cover the cost of upfitting the new vehicles with proper police emergency equipment and returning any remaining unanticipated revenue to the City General Fund. The support staff fleet was extended to a six year turnaround in order to reduce costs during the past fiscal emergency. These six support staff vehicles were declared surplus since July 2015 and the replacement vehicles have arrived. The Police Department has been in need of a truck that is both capable of towing the grant funded City incident command trailer and storing the necessary response equipment such as traffic cones, lights, barricades, etc. Currently, the Police Department must load and unload these response supplies from a garage bay into a pickup truck in order to respond to an incident. Item 9.l. - Page 1 CITY COUNCIL CONSIDERATION TO APPROVE A VEHICLE EXCHANGE / PURCHASE WITH THE FIVE CITIES FIRE AUTHORITY JANUARY 12, 2016 PAGE 2 The Five Cities Fire Authority has determined that their rescue squad truck is no longer needed and is scheduled for surplus. However, the Fire Authority is in need of two replacement staff support vehicles. ANALYSIS OF ISSUES: This proposal calls for the exchange of two 2009 Dodge Avenger staff vehicles no longer needed in the Police Department (Combined value of $12,075) plus a supplemental payment of $11,925 to the Five Cities Fire Authority in exchange for a 2001 Ford F550 Hackney Rescue Truck (Valued at $24,000). The values of the Dodge Avengers were determined by the National Automotive Dealers Association “NADA Guides” for average trade in value. T he value of the Ford F550 Rescue Truck was determined by an average of six similar vehicles advertised nationally for sale and a marketing appraisal by a national emergency vehicle reseller. This proposal will vastly improve both the City’s commitment to emergency management and the Police Department’s ability to respond during critical incidents and special events due to the capabilities of the former rescue truck. Additionally, the Fire Authority will obtain much needed replacement staff vehicles at a fraction of the customary cost. The sale of the remaining surplus staff vehicles will cover the cost of upfitting the new staff support vehicles as planned as well as the payment to the Fire Authority. ALTERNATIVES: The following alternatives are provided for the Council's consideration: 1. Approve the vehicle exchange / purchase with the Five Cities Fire Authority; 2. Do not approve vehicle exchange / purchase with the Five Cities Fire Authority; or 3. Provide direction to staff. ADVANTAGES: The advantage of approving the recommended action is that it will enhance the City’s emergency management response to critical incidents and special events at a much reduced cost utilizing unanticipated revenue from the sale of surplus vehicles. Item 9.l. - Page 2 CITY COUNCIL CONSIDERATION TO APPROVE A VEHICLE EXCHANGE / PURCHASE WITH THE FIVE CITIES FIRE AUTHORITY JANUARY 12, 2016 PAGE 3 DISADVANTAGES: There are no identified disadvantages. ENVIRONMENTAL REVIEW: This project is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3). PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, January 7, 2016. The agenda and staff report was posted on the City’s website on Friday, January 8, 2016. No public comment has been received to date. Item 9.l. - Page 3 THIS PAGE INTENTIONALLY LEFT BLANK Item 9.l. - Page 4