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HomeMy WebLinkAboutIR 8290 [INFORMAL REPORT TO CITY COUNCIL�MEMBERS No. C,%pSTEp, To the Mayor and Members of the City Council December 5, 2000 x. X Subject: Motorcycle Procurement 1873 The Police Department has conducted an analysis of motorcycle procurement options in order to improve the condition and safety of the fleet and to reduce maintenance costs. Because of the increase in the size of the traffic division in the FY2001 budget and the potential for significant up- front capital costs, it is critical for the City to develop an appropriate procurement plan. Options Following input from Fort Worth Police Department traffic officers and other cities, the department completed a financial comparison of current practices and available options, including purchasing and leasing. The major manufacturers of police package motorcycles are Kawasaki, Harley Davidson, and BMW. In addition, the possibility of providing an allowance to officers to privately purchase their motorcycles was explored following input from the Cities of Houston and Arlington with current private ownership programs. Implementation Costs Analysis of the options factors in procurement costs, operating and maintenance costs, and liquidation revenue from the sale of obsolete equipment. In addition, staff evaluated first year implementation costs as well as costs projected over six years, or two complete procurement cycles. The least expensive option was the lease of Harley Davidson Road Kings. However, when availability and the indirect costs of contracting, travel for repair and maintenance, and lost productivity of officers in the form of ticket revenue were factored in, the motorcycle allowance became the most cost effective alternative. The attached charts summarize the results of the financial analysis. As a result of this review as well as a cost projection over time, the Department is recommending that the City begin providing a motorcycle allowance to officers in the unit to achieve the following objectives: 1. Improvement of Officer Safety ♦ All motorcycles will be no greater than five years old. * Each officer will be responsible for the maintenance of his/her personal bike. * Each officer may select the police package motorcycle that meets his/her needs for comfort and safety features. 2. Reduced Maintenance Expenses ♦ Each officer will be responsible for maintenance and repairs. In practice, other cities have found that officers retain bikes no longer than the length of the available warranty. ♦ The newer privately-owned fleet will require fewer repairs than the City's current fleet. As a result, the allowance rate can reflect these savings. ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. A9QC TE To the Mayor and Members of the City Council December 5, 2000 Page 2 o 3 Subject: Motorcycle Procurement Guidelines for the Motorcycle Allowance If approved, each officer will receive $475 per month upon reporting to duty with a privately owned motorcycle that meets the criteria. The rate covers our estimate of anticipated annual expenses to the officers in this program. It is consistent with the methodology and rate of pay for other major cities with similar programs. Each officer will be required to sign a form acknowledging receipt of the Standard Operating Procedure outlining financial responsibilities prior to operating a privately- owned motorcycle on duty. Officers will be required to provide an approved motorcycle no greater than five years old. Officers will be responsible for all gasoline, maintenance, and repairs not caused by collision. Officers will be required to carry liability and comprehensive and collision coverage on their motorcycle to protect them when they are in an authorized use of their motorcycle but not in course and scope of their jobs. Authorized uses include duty, approved off-duty jobs, transportation to and from work, and transportation to and from repair facilities. All repairs and maintenance shall be the responsibility of the officers during their non-duty hours. Officers will be restricted from using the motorcycle for personal purposes. In order to generate the full cost-savings anticipated in this program, any officer assigned to the motorcycle unit would be required to provide their own motorcycle. The City will retain two motorcycles during early implementation for training purposes. In practice, officers apply for consideration for the motorcycle unit and turnover is very low. The department retains the right to transfer the officer out of the motorcycle unit and suspend the allowance upon thirty days notice. Conversely, the officer can request to be removed from the unit upon thirty days notice. Finally, officers injured in the line of duty will continue to receive their allowance for up to ninety days depending upon the circumstances and then at the Chief of Police's discretion. Liability Substantial consideration was given to the issue of liability for a private motorcycle ownership program. Currently, property damage and liability for motorcycles and motorcycle officers in the course of their employment or if engaged in authorized use are covered under the City's self- insurance program and Personal Liability Indemnity Plan. Liability coverage for personally owned motorcycles is as follows: 1. An incident that occurs while the officer is in the course of their employment will be covered by the City's Personal Liability Indemnity Plan, secondary to any coverage by the officer's private 00pl* liability insurance. ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8290 7E G,�,pFlp� of cTE To the Mayor and Members of the City Council December 5, 2000 Page 3 of 3 X Subject: Motorcycle Procurement 2. An incident that occurs during authorized use but not in course of employment is the responsibility of the officer and/or his/her insurance company. Coverage of physical damage to the motorcycles is as follows: 1, Damage that occurs to the motorcycle while the officer is in course of employment will be paid by the Police Department's operating budget, secondary to any coverage by the officer's private vehicle coverage. If the damage is the fault of a third parry, the City will pursue recovery of the amount of damages from the responsible party. 2. Physical damage that occurs while the motorcycle is not in use will be covered by the private insurer. The Police Department would pay up to $250 for the officer's deductible in these instances. An example is theft or vandalism while parked. 3. Any use of the motorcycle that is not authorized would be the sole responsibility of the officer and his/her private coverage and would result in appropriate discipline. Basically, the City is incurring the same financial liability that they presently do with City-owned motorcycles. The only exception is that a private insurer will incur liability for instances falling outside of course and scope that the City currently assumes with take-home motorcycles. The officers are protected from financial loss barring situations of unauthorized use or negligence. Officer Input Officers currently assigned to the motorcycle unit have been presented copies of the proposed Standard Operating Procedure for the privately-owned motorcycle program. Police Department management held a meeting with all of the officers to seek input regarding their questions and concerns. The Standard Operating Procedure has been amended to address these concerns. Subsequently, the policy received unanimous written support by the motor officers for implementation of the program. Conclusion At the City Council's direction, staff will prepare an M&C to authorize allowances for motorcycle officers to provide police package motorcycles for duty. The program will be implemented in January 2001 and phased in as officers are able to take delivery of motorcycles from manufacturers. 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