Title
Recommendation to Authorize the Purchase of Seventeen Hybrid Ford Interceptors from Towne Ford in an Amount-Not-to-Exceed $1,074,652.26, Including a 3% Contingency, with Aftermarket Equipment from Kerr Industries in an Amount-Not-to-Exceed $351,682.12, Including a 3% Contingency; and Purchase of Two Tesla Y Police Sport Utility Vehicles from Unplugged Performance, Including Aftermarket Equipment, in an Amount-Not-to-Exceed $143,628.27, Including a 3% Contingency. (Public Works 60141581)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
Nineteen Alameda Police Department (APD) Ford Interceptors are scheduled for replacement due to mileage and age consistent with Administrative Policy 48, the City of Alameda’s (City) Vehicle Fleet Replacement Policy (Fleet Replacement Policy). Staff recommends replacing these vehicles with seventeen Hybrid Ford Interceptors from Towne Ford in an amount not to exceed $1,074,652.26, which includes a 3% contingency, and procuring aftermarket equipment from Kerr Industries in an amount not to exceed $351,682.12, which also includes a 3% contingency. The two remaining Ford Interceptors are recommended for replacement with Two Tesla Y Police Sport Utility Vehicles (SUVs), which are electric models, from Unplugged Performance in an amount not to exceed $143,628.27, which includes aftermarket equipment and a 3% contingency.
BACKGROUND
APD and Fleet Services are responsible for replacing police vehicles according to the Fleet Replacement Policy, which establishes the replacement criteria based on age, mileage (or hours), and usage. Vehicles scheduled for replacement are reviewed for safety history, operating performance and whether continued service is cost-effective and minimum use guidelines are met.
Nineteen existing Ford Interceptors used for Patrol, Supervisor and Watch Commander Police functions are due for replacement. Funding for replacement of these vehicles was approved by City Council as part of the Fiscal Year (FY) 2025-26 budget.
In accordance with City Administrative Instruction Number 5 (“Purchasing Policy”), vehicles may be purchased by piggybacking on another agency’s purchase agreement or through cooperative purchasing. The City’s Purchasing Policy allows the City Manager to approve sole source procurements, if limitations on the source of supply, necessary restrictions in specification, necessary standardization, quality considerations or other valid reasons for waving competitive bids exist. The City Council must approve an award of vehicle purchases to a single vendor exceeding a cumulative total of $75,000 in any given fiscal year.
DISCUSSION
Gasoline vs. Electric Evaluation
The APD requires reliable patrol vehicles for public safety. Staff recommends replacing the nineteen Ford Interceptors due for replacement with seventeen Hybrid Ford Interceptors and two Tesla Electric Vehicle (EV) SUVs. APD supports fleet electrification where operationally feasible. Accordingly, the two Tesla EVs will enable APD to assess their viability for patrol and evaluate the impact of the time needed to charge the vehicles on overall operations. The seventeen Ford Interceptors are proposed as hybrid models, which have improved miles per gallon of gasoline than the gasoline only models. This mixed-fleet strategy balances public safety, operational readiness, and the City’s climate goals.
Procurement Strategy
Sourcewell is a cooperative purchasing agency that solicits and awards contracts through a public competitive procurement process compliant with state statutes. The City is a participating Sourcewell member. National Auto Fleet Group holds Sourcewell agreement 091521-NAF, which includes competitively bid pricing for hybrid Ford Interceptors at $67,646.99 per unit (Exhibit 1).
However, staff identified lower per-unit pricing through Towne Ford, a Bay Area dealership, at $61,373.63 per unit (Exhibit 2). This pricing saves an estimated $6,000 per vehicle. Based on the cost savings, staff recommend purchasing seventeen Ford Interceptors from Towne Ford for a total amount not-to-exceed $1,074,652.26, which includes a 3% contingency.
The seventeen hybrid Ford Interceptors require APD specific aftermarket equipment. Staff recommend procuring this equipment and installation services from Kerr Industries, a long-standing APD vendor with expertise in emergency vehicle upfitting. Staff recommends this sole source purchase because Kerr industries works directly with Ford and has completed quality, lower cost aftermarket equipment installation for APD in 2024 and 2025. This Ford/Kerr program allows the Ford vehicle warranty to remain in effect and allows the vehicle to be shipped by Ford with Kerr Police aftermarket equipment already installed. This program also reduces the estimated time until these vehicles are operational from nine down to six months. Of the seventeen hybrid Ford Interceptors, eleven will be Patrol, two Supervisor and four Watch Commander vehicles. Each category requires different aftermarket equipment. Exhibit 3 includes the equipment details and per unit cost for each vehicle category. The total cost of the aftermarket equipment and installation is not to exceed $351,682.12, which includes a 3% contingency. A contingency is needed for this purchase due to the complexity of the aftermarket equipment on APD vehicles. Historically, minor adjustments have been needed as the vehicle is outfitted.
Staff recommends purchasing the two Tesla EVs, including the required aftermarket equipment, from Unplugged Performance who holds Sourcewell contract 081325-Tesla. The total not to exceed cost is $143,628.27, which includes a 3% contingency. Staff inquired with other vendors and were unable to find better pricing than that in Unplugged Performance’s Sourcewell contract.
An additional $23,000 will be incurred for graphics (city logo, etc.). This expense is within staff signing authority and will be processed in accordance with the Purchasing Policy.
The existing Ford Interceptors were depreciated in the City’s Vehicle Replacement Fund over their useful life. Sufficient funding is available for the proposed purchases, and City Council approved the expenditure appropriation in the FY 2025-26 budget.
ALTERNATIVES
• Authorize the Purchase of Seventeen Ford Interceptor Utility from Towne Ford for an amount not to exceed $1,074,652.26 with aftermarket equipment from Kerr Industries for an amount not to exceed $351,682.12; and two Tesla Y Police SUV from Unplugged Performance for an amount not to exceed $143,628.27 (including aftermarket equipment).
• Delay or do not approve replacement purchase of the replacement vehicles, which may adversely impact APD services due to likely downtime from repairs and increased maintenance on the existing units.
FINANCIAL IMPACT
Funds for these replacement purchases were previously appropriated in the FY 25/26 Fleet Replacement Fund (601). No additional budget appropriations are needed.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
The Fleet Replacement Policy is consistent with the City’s recently adopted Climate Action and Resiliency Plan by emphasizing greenhouse gas emission reductions. The revised policy includes a focus on right-sizing the City fleet, the purchase of electric vehicles when feasible, and lowering the fleet’s greenhouse gas emissions through acquisition of low emission vehicles.
While only two of the nineteen vehicle replacements are EVs, the remaining seventeen will have a hybrid engine that has improved miles per gasoline as compared to the gasoline models and therefore reduced greenhouse gas emissions.
RECOMMENDATION
Authorize the purchase of seventeen hybrid Ford Interceptors from Towne Ford in an amount not to exceed $1,074,652.26, including a 3% contingency, with aftermarket equipment from Kerr Industries in an amount not to exceed $351,682.12, including a 3% contingency; and Authorize the purchase of two Tesla Y Police Sport Utility Vehicles from Unplugged Performance, including aftermarket equipment, in an amount not to exceed $143,628.27, including a 3% contingency.
Respectfully submitted,
Carlo Balboni, Fleet Supervisor
From,
Erin Smith, Public Works Director
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Quote National Auto Fleet Group Ford Interceptor
2. Quote Towne Ford Interceptor
3. Quote Kerr upfit Ford Interceptors
4. Quote Unplugged Performance Tesla Y