Placement: Consent Agenda
Action Requested: Motion / Vote
title
Approval to Purchase Drones and Trade-In Old Drones to State of Florida
body
Submitted By: Renee Hayes, Procurement Manager, Procurement Management Division (PMD)
Strategic Plan Link: The City’s Mission to provide exceptional municipal services.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Renee Hayes, (PMD)
2. Parties: City of Port St. Lucie , State of Florida, and Axon Enterprise, Inc.
3. Purpose: To trade in drones to the State of Florida and purchase drones and equipment to support the drones from Axon Enterprise, Inc. for the Police Department
4. New/Renewal/Modified: New
5. Duration: upon trade in and purchase based on value
6. Benefits to Port St. Lucie: To provide the Police Department with replacement drones and related equipment to comply with the law.
7. Cost to Port St. Lucie (Annual and Potential): The total cost to the City of Port St. Lucie is the revenue from the buyback trade-in program.
Presentation Information: N/A
Staff Recommendation: Move that the Council approve the City’s participation in the State of Florida Drone Trade-In Program and the purchase of new drones with the monies acquired from the trade-in and additional funds necessary to supplement the trade-in funds for the purchase.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve utilization of the State of Florida Trade In Program and purchase of new drones with the sole source provider.
2. Move that the Council not approve and provide staff with direction.
Background:
The State of Florida required agencies to cease utilizing specific manufactured drones. Our agency, along with many other agencies in Florida, were prohibited from flying DJI drones and forced to purchase new drones to maintain drone operations. The cost of the replacement drones was much more expensive and created budget burdens for many police agencies. To help alleviate this burden, the State of Florida established a buyback program to offset the cost of new drones. The Port Saint Lucie Police Department (“PSLPD”) qualifies for the program and has the opportunity to recover up to 100% of the purchase price for the noncompliant drones. Here are the details of the program:
Prior to the implementation of the law, PSLPD Swat Techs flew five outdoor DJI Drones and six indoor DJI Mini Drones. The original purchase price of the entire fleet prior to the law going into effect was $28,287.89. We also spent $7,902.12 on supporting hardware and accessories such as batteries and propellers. The agency spent a total of $36,190.01. To participate in the buyback, the drones must be delivered to the FDLE Tampa Office for inspection and appraisal. With the original purchase receipts the agency could recover up to 100% of the purchase value of our DJI fleet, $28,287.89.
After the drones are inspected, funds will then be issued to the agency for the appraised value in a check on-site. The agency will be required to purchase new drones with all the awarded funds within 45 days and will require a vendor quote or purchase order to be attached to the documentation. We have identified two new drones to purchase once the funds are received. The Quote from Axon, included in Attachment 6 to this agenda item, shows the cost for the two new drones. However, because PSLPD does not know the exact trade-in amount it will receive, but the funds must be used to purchase new, compliant drones within the specified timeline, this agenda item is requesting that Council approve PSLPD to participate in the buyback program, permitting it to surrender the noncompliant drones, and then purchase new drones with the buyback funds, equal to the amount of drones PSLPD can purchase, rounded up to the nearest whole unit. There are two additional caveats. First, the Drone Replacement Program expires 6/30/24, but the expectation is that the funding will renew and increase on 7/1/24. However, the Drone Replacement Program Agreement uploaded may be amended. Therefore, PSLPD is requesting Council approve the trade-in under the Drone Replacement Program Agreement that is attached, or in substantially similar form, as may be amended by the Florida Department of Law Enforcement. Second, the Quotes included in Attachment 1 are previous versions integrated into the packet, however, were replaced by the Quote in Attachment 6, containing reference to the City’s master agreement with Axon.
The Program Details are listed below:
The Florida Legislature amended Section 934.50, Florida Statutes during the 2022 session. By July 1, 2022, governmental agencies using any drone not produced by an approved manufacturer must implement a plan to discontinue the use of such drone by January 1, 2023. This grant provides funding for the Recipient to replace drones that are not in compliance with Rule 60GG-2.0075, Florida Administrative Code. The amount awarded to the Recipient will be based on the initial purchase price and total flight hours for the device, in accordance with the depreciation schedule in Appendix A. The depreciation value is strictly based on the purchase price of the drone itself, and does not include any additional costs such as accessories, warranties, shipping costs, etc.
To be eligible for payment under this program, the unallowable drone must not be at end-of-life and must still be in working condition. In order to receive reimbursement for this program, drones which were purchased from companies who are not compliant with Rule 60GG-2.0075, Florida Administrative Code, must be relinquished to the Florida Department of Law Enforcement. In accordance with program guidelines established in the 2023 legislative session, relinquished, non-compliant drones will be provided to the Florida Center for Cybersecurity at the University of South Florida (USF) for analysis.
Recipient's Responsibility
The Recipient must prepare a Drone Certification Form (Appendix B) for the noncompliant drone(s) they are seeking replacement for. This form includes an attestation of the total flight hours, the noncompliant drone has not reached its end of life and is in working condition at the time it is relinquished.
The Recipient must submit documentation for the original purchase of the non-compliant drone, including but not limited to: purchase order, invoice, and cancelled check or bank statement.
The Recipient is responsible for relinquishing the noncompliant drone to the Florida Department of Law Enforcement to either Tallahassee Regional Operations Center or Tampa Bay Regional Operations Center. To facilitate this process, the Recipient must schedule an appointment with the below FDLE contact for the appropriate location for relinquishment of the noncompliant drone. The Recipient may request a cash advance to receive program funds and subsequently purchase the compliant drone. In order to qualify for this method of payment, the Recipient must provide a valid, executed purchase order and must be ready to order the compliant drone immediately upon the receipt of advanced funds. The Recipient must provide documentation of purchase (invoice) and proof of payment (cancelled check, bank/card statement, etc.) within 45 days of receiving the advanced funds. Failure to provide documentation within 45 days will result in the Recipient being required to submit a refund to FDLE.
Issues/Analysis: Staff has reviewed the Program Details as well as the proposed purchase and finds that they meet the needs of the City and meet the requirements of the City's procurement ordinance.
Financial Information: Funds will be appropriate each fiscal year with the Police Department budget. The Finance department has reviewed the lease/purchase agreement and found the terms to be acceptable.
Special Consideration: This contract is excepted from formal bidding requirements in the City Code of Ordinances, Chapter 35, on the basis of Sole Source (City Code of Ordinances, Section 35.08(a)(22)), “[w]here the compatibility of equipment, accessories, or replacement parts is the paramount consideration.” Sole Source Approval Checklist, demonstrating compliance with Section 35.08(a)(22), uploaded as Attachment 7.
Location of Project: N/A
Attachments:
1. State of Florida Drone “Trade In” Program
2. Drone Replacement Program Financial Assistance Agreement
3. Receiving Relinquished Drones Procedures
4. Original invoices from 2019 or drones to be traded in
5. Appendix B - Drone Certification Form
6. Revised Quote from Axon Enterprise, Inc.
7. Sole Source Approval Checklist
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 24162-08
Legal Sufficiency Review:
Reviewed by Alyssa Lunin, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, Interim City Attorney.