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PAGE 2 <br />MAYOR AND TOWN COUNCIL <br />SUBJECT: AUTHORIZE BUDGET ADJUSTMENT IN THE AMOUNT OF $83,500 IN THE <br />TOWN'S EQUIPMENT REPLACMENT FUND FOR THE PURCHASE OF THREE <br />2009 POLICE PATROL VEHICLES AND APPROVE PURCHASE AGREEMENT <br />WITH DOWNTOWN FORD SALES, SACRAMENTO <br />March 31, 2010 <br />Town's vehicle service provider, Frontier Ford, highly recommended this engine not be replaced, due to <br />the overall age and condition of the vehicle. There are two additional vehicles assigned to the Patrol <br />Division which were identified as having over 90,000 miles and range in age from six to eight years old. <br />Due to the high mileage and age, these vehicles are also recommended for replacement. <br />Downtown Ford Sales (DTFS) located in Sacramento, California, is a large supplier of fleet vehicles to <br />local and state agencies. DTFS stocked 2009 police vehicles anticipating normal sales for the year. <br />However, due to the downturn in the economy, many municipalities have extended their fleets and not <br />purchasing new vehicles. As a result, DTFS is currently overstocked with new 2009 Ford Crown <br />Victoria Police Sedan vehicles and is offering them to municipalities at a reduced rate. <br />The net standard unit price for the 2009 Ford Crown Victoria Police Sedan is $27,101, including all <br />taxes and fees. DTFS is currently offering discounts in the amount of $2,735. With the addition of <br />taxes and other fees in the amount of $2,141, the total per unit is $24,113. The Town's total net savings <br />per vehicle is approximately $3,000. <br />Additionally, the Ford Motor Company anticipates a 3% price increase for the next model year of 2011, <br />resulting in added incentive for immediate purchase. <br />CONCLUSION: <br />Due to the total cost savings available and the three vehicles identified as needing replacement, staff <br />recommends the immediate purchase of three 2009 Ford Crown Victoria Police Sedan vehicles. The <br />Town's total cost savings for this purchase within this 2009/10 Fiscal Year, as opposed to the following <br />fiscal year, would be $8,964.00 for three vehicles. <br />Qty Description Total <br />1 2009 Ford Crown Victoria Police Sedan 24,707 <br />Factory Incentive Discounts 2,735 <br />Adjusted Unit Price W/Discounts 21,972 <br />Shipping 100 <br />Tax 2,032 <br />Tire Fee 9 <br />Standu~d <br />Price /Unit <br />24,707 <br />24,707 <br />100 <br />2,285 <br />Sub Total Per Unit 24,113 27,101 <br />Net Saving Per Unit 2,988 <br />