HomeMy WebLinkAboutAuthorize the City Manager to Execute a Sole Source Purchase �ATDCSO U- N4))
City of Huntington Beach
File #: 21-852 MEETING DATE: 11/16/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Sean Crumby, Director of Public Works
Subject:
Authorize the City Manager to execute a Sole Source purchase order for the purchase of two
(2) Tesla Model Y Electric Vehicles for addition to the Police Department fleet
Statement of Issue:
All sole source purchases over $50,000 must be approved by City Council. Staff is recommending
approval of a sole source purchase of two (2) Tesla Model Y Electric Vehicles.
Financial Impact:
The quote for both vehicles is $104,860. Funds in the amount of$160,000 for this purchase are
available in Air Quality Management District (AQMD) fund 20185201.85050. The additional funds will
be used to outfit the vehicles.
Recommended Action:
Approve the sole source purchase of two (2) Tesla Model Y Electric Vehicles.
Alternative Action(s):
Do not approve the purchase.
Analysis:
The City is in the process of transitioning its fleet to alternative fuel and away from traditional fossil
fuel. This will incorporate electric vehicles and smaller trucks, as well as utilizing alternate fuels for
larger, heavy-duty equipment, where practical. To that end, staff has begun exploring electric vehicle
(EV) options for its police patrol cars.
Tesla provided cars for the City to test in September, at which time the Tesla Model 3 and Model Y
were driven. Staff determined that the Model 3 rear seating area was not large enough to
accommodate one or more arrested individuals, and the trunk space was not sufficient to contain the
various electronics and patrol equipment that the Police Department requires. However, the Model
Y's seating and cargo space were larger and able to accommodate both needs.
Currently, Tesla is the only EV manufacturer to offer an appropriately sized SUV that can be
City of Huntington Beach Page 1 of 2 Printed on 111102021
File #: 21-852 MEETING DATE: 11/16/2021
converted into a patrol car. Staff investigated other EVs and visited Huntinton Beach Ford to
consider the Mach E. Unfortunately, that vehicle and others do not meet the size requirements and
other needs of the Police Department. The Model Y provides more power and a longer lasting
battery system than any other manufacturer at this time. Compared to other EVs, the Tesla's also
have an unobstructed view with minimal blind spots that will enhance public safety.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Sole Source Purchase Justification
City of Huntington Beach Page 2 of 2 Printed on 11/10/2021
p were254 Leois;ar"'
RECEIVED
CITY OF HUNTINGTON BEACH NOV 02 2029
.,_ Sole-Source Justification
(For use on all goods and services acquisitions.) FirlaYq;: Department
This justification document consists of two(2)pages. All information must be provided and all questions must be answered. The"Required
Approvals"section must include a date for each signature,as appropriate for the transaction.
Requesting Department Information
Date: October 27, 2021
Requestor Name: Ken Dills Division Manager: Denny Bacon
(Type names. Do not sign.)
Department: Public Works Department Head: Julian HarveylSean Crumby
(Type names. Do not sign. Must be same as signature below.
Department Contact Information
Contact Name: Cody Jahn Street Address:
Telephone: 5047
Fax: Shipping Address:
Cellular hone:
Required Contact Information
Contractor/Supplier Name: Tesla
Contractor/Supplier Address:
Contractor/Supplier Cit /State/Zi
Original Contract Amount:` Amendment Amount:" (if applicable) TNew Contract Amount:'
$ $ $104,880
('Includes original contract and previously ('Includes original contract and all amendments,
approved amendments) ('Current amendment only) including current amendment
Provide a brief description of the acquisition, including all goods and/or services the contractor willprovide:
This purchase is for two 2 electric Tesla Model Y vehicles to be used as PD squad cars.
Contract Type and Term
Contract Type: Contract Term: What account number will be used to purchase?
Select One: ® Goods Begin: Business Unit: 20185201.85050
❑ Service
❑ Goods&Services End: Object Code:
Require Approvals
Department Head Prir*pal Finance Analyst cjflef Financial Officer Assistant City Manager
❑Ap ed De ErAp roved ❑ Denied El Approved ❑ Denied Ly"Approved El Denied
Signature Signature C Sr"
OErzo It/`1/2'0Z1 It /� /Y ( !�fy/Zoz(
Date Date Date Date
(Transactions exceeding $50,000
must be approved by City Council
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Date
254
ry. CITY OF HUNTINGTON BEACH
Sole Source Justification
(For use on all goods and services acquisitions.)
Complete responses must be provided for all of the following items.
A. THE GOOD/SERVICE REQUESTED IS RESTRICTED TO ONE SUPPLIER FOR THE REASONS STATED BELOW:
1. Why is the acquisition restricted to this goods/services/supplier?
(Explain why the acquisition cannot be competitively bid.)
The City wishes to transition its fleet to eletric vehicles where pratical. Tesla is the only manufacturer to
offer the size of SUV needed to convert into a patrol car. Other models do not offer sufficient room for
equipment or prisoner area. In addition the Tesla Model Y provides more power and a battery system that
lasts longer than any other manufacturers. The Tesla's have an unobstructed view with minimal blind
spots. Other models had big blind spots.
2. Provide the background of events leading to this acquisition.
The City is transitioning the City's fleet to electric vehicles where possible and will be installing a number
of charging stations with the next six months.
3. Describe the uniqueness of the acquisition (why was the good/service/supp(ier chosen?).
Please see #1.
4. What are the consequences of not purchasing the goods/services or contracting with the proposed
supplier?
The City would be restricted to gas-fueled patrol cars until another manufacturer develops one of
sufficient size, which is still a number of years away.
5. What market research was conducted to substantiate no competition, including evaluation of other items
considered?
(Provide a narrative of your efforts to identify other similar or appropriate goods/services,including a summary of how the department
concluded that such alternatives are either inappropriate or unavailable. The names and addresses of suppliers contacted and the reasons
for not considering them must be included OR an explanation of why the survey or effort to identify other goods/services was not
performed.)
The City was allowed to demo 2 Tesla's for 48 hours. Both the Model "3" and the Model "Y" were tested.
The Model "3"was too small in the rear seat area for prisoners and also too small in trunk for the
electronics area and Patrol Equipment. The Model "Y" turned out to have a larger back seat and a larger
cargo area to accommodate the electronics and patrol equipment. The City has investigated other
electronic vehicles and paid a visit to Huntinton Beach Ford to consider the Mach E. Unfortunately,that
vehicle and others do not meet the needs of the Police Department.
B. PRICE ANALYSIS
1. How was the price offered determined to be fair and reasonable?
(Explain what the basis was for comparison and include cost analyses as applicable.) 255
2
The FY 2021122 Equipment Replacement Budget provides $45,000 as the replacement cost of gas-
powered squad cars. The quote for the two Tesla's is $104,860 or $52,430 per vehicle. It is estimated the
difference in cost will be more than made up by fuel and maintenance.
2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.
This has been determined to be the only supplier making a vehicle of sufficient size, power and battery
life. Fuel cost for these two vehicles will be zero. In addition, maintenance and repairs will be reduced.
Remit completed to"to: City of Huntington Beach—Purchasing Division
2000 Main Street, Huntington Beach,CA 92648-2702
256
3
PURCHASEOF •
TESLA MODEL
PATROL • -
THE - •
DEPARTMENT
t �
Vehicle Comparison :
Model Y vs. Chevy Tahoe
Tesla Model Y Chevrolet Tahoe
Purchase Price 000 $57.000
Range / Fuel Tank Capacity 316 rriles (range) 28 gallons
0.
Annual Maintenance Costs :ra 00 per year
Unlike fuel vehicles Teslas do not require traditional oil changes fuel filters spark plug
replacements or emissions checks Model Y maintenance services are similar to a fuel vehicle
and total costs are expected to be less than the Tahoe s costs
11/17/2021
Fuel vs. Electric Operating Cost
2021 Chevy Tahoe 2021Model
20.030 u m 2'.0,020 - 3.57 -
Annual
�w
1,u0 f 6.00 `� 5.808 f .u6
w.r
Savings with Model1
VEHICLES OVERALL RATING - FRONTAL CRASH : SIDE CRASH ROLLOVER S
2021 Tesla Model V 5- ***** ***** ***** **t**
Seat SUV AWD Later
Release
2021 Chevrolet Tahoe ***** ***** ***** **#**
SUV 2WD
2
11/16/2021
PURCHASE 2 TESLA MODEL Y FOR POLICE DEPTARTMENT
e d. „b
Model Y
Purchase Price
• Tesla Model Y - $52k
• Traditional - $57k
Specs
• 316 miles range
• Charge Time 7 hrs 15 min (level 2)
• MPGe: 115 City/ 106 Hwy (1 gallon of gasoline=33 7 kWh)
Potential Savings
• Fuel $3500 per vehicle per year savings
• Maintenance Currently spending $3.500 per vehicle per year
Tesla Model Y ????
SUPPLEMENTAL
COMMUNICATION
M"*V Date:
1
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