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DATE:
TO:
FROM:
MEETING DATE: 4/5/2010
ITEM NO:
COUNCIL AGENDA REPORT
MARCH 31, 2010
MAYOR AND TOWN COUNCIL
GREG CARSON, TOWN MANAGER ~.~'
SUBJECT: AUTHORIZE BUDGET ADJUSTMENT IN THE AMOUNT OF $83,500 IN THE
TOWN'S EQUIPMENT REPLACMENT FUND FOR THE PURCHASE OF THREE
2009 POLICE PATROk, VEHICLES AND APPROVE PURCHASE AGREEMENT
WITH DOWNTOWN FORD SALES, SACRAMENTO
RECOMMENDATION:
Authorize budget adjustment in the amount of $83,500 in the Town's Equipment Replacement Fund for
the purchase of three 2009 Police patrol vehicles and approve purchase agreement with Downtown Ford
Sales, Sacramento.
BACKGROUND:
As part of the FY 2009/10 Capital Operating Budget, the Equipment Replacement Schedule was
approved, providing for the replacement of high mileage or older vehicles. All scheduled fixed assets
have been purchased and placed in service for the Police and Parks and Public Works Departments. The
Equipment Replacement Fund appropriated budget has been encumbered or expended for FY 2009/10.
Staff is requesting additional available funding in the Equipment Replacement Fund be appropriated in
FY 2009/10 to enable acquisition of three new Police vehicles, saving approximately $9,000 from the
lowest available price on the state bid.
DISCUSSION:
During the budget process for FY 2010/11, staff identified three patrol vehicles within the Police
Department in need of replacement within the fiscal year. One of the assigned Patrol vehicles, a 2002
Ford Crown Victoria, experienced major engine mechanical failure. The cost to replace and install a
factory rebuilt engine for this vehicle is estimated at $4,100.00, and includes a 36-month warranty. The
PREPARED BY: STEPHEN CONWAY
Admuristrative Services/Finance Director
SC:pg
N:\MGRWdminWorkFiles\2010 Council Reports\4-I-10 Equipment Repw nt Budget Adjustment.doc
Reviewed by:Assistant Town Manager~I ~ Town Attorney
Clerk Administrator~~Finanee Community Development
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: AUTHORIZE BUDGET ADJUSTMENT IN THE AMOUNT OF $83,500 IN THE
TOWN'S EQUIPMENT REPLACMENT FUND FOR THE PURCHASE OF THREE
2009 POLICE PATROL VEHICLES AND APPROVE PURCHASE AGREEMENT
WITH DOWNTOWN FORD SALES, SACRAMENTO
March 31, 2010
Town's vehicle service provider, Frontier Ford, highly recommended this engine not be replaced, due to
the overall age and condition of the vehicle. There are two additional vehicles assigned to the Patrol
Division which were identified as having over 90,000 miles and range in age from six to eight years old.
Due to the high mileage and age, these vehicles are also recommended for replacement.
Downtown Ford Sales (DTFS) located in Sacramento, California, is a large supplier of fleet vehicles to
local and state agencies. DTFS stocked 2009 police vehicles anticipating normal sales for the year.
However, due to the downturn in the economy, many municipalities have extended their fleets and not
purchasing new vehicles. As a result, DTFS is currently overstocked with new 2009 Ford Crown
Victoria Police Sedan vehicles and is offering them to municipalities at a reduced rate.
The net standard unit price for the 2009 Ford Crown Victoria Police Sedan is $27,101, including all
taxes and fees. DTFS is currently offering discounts in the amount of $2,735. With the addition of
taxes and other fees in the amount of $2,141, the total per unit is $24,113. The Town's total net savings
per vehicle is approximately $3,000.
Additionally, the Ford Motor Company anticipates a 3% price increase for the next model year of 2011,
resulting in added incentive for immediate purchase.
CONCLUSION:
Due to the total cost savings available and the three vehicles identified as needing replacement, staff
recommends the immediate purchase of three 2009 Ford Crown Victoria Police Sedan vehicles. The
Town's total cost savings for this purchase within this 2009/10 Fiscal Year, as opposed to the following
fiscal year, would be $8,964.00 for three vehicles.
Qty Description Total
1 2009 Ford Crown Victoria Police Sedan 24,707
Factory Incentive Discounts 2,735
Adjusted Unit Price W/Discounts 21,972
Shipping 100
Tax 2,032
Tire Fee 9
Standu~d
Price /Unit
24,707
24,707
100
2,285
Sub Total Per Unit 24,113 27,101
Net Saving Per Unit 2,988
PAGE3
MAYOR AND TOWN COUNCIL
SUBJECT: AUTHORIZE BUDGET ADJUSTMENT IN THE AMOUNT OF $83,500 IN THE
TOWN'S EQUIPMENT REPLACMENT FUND FOR THE PURCHASE OF THREE
2009 POLICE PATROL VEHICLES AND APPROVE PURCHASE AGREEMENT
WITH DOWNTOWN FORD SALES, SACRAMENTO
March 31, 2010
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
Sufficient funds are available and were allocated for this budget adjustment in the Town's Equipment
Replacement Fund. All three vehicle replacements were scheduled for replacement in early FY
2010/11. Buying the three replacement vehicles this fiscal year will save the operating budget in FY
2010/11 approximately $9,000. The total budget recommended budget adjustment is for three vehicles
at a cost of $24,113 and approximately $11,200 for the outfitting one of these vehicles to go into service
this fiscal year as soon as possible.
Attachments:
1. Agreement with Downtown Ford Sales
2. Price Quotation dated March 24, 2010 from Downtown Ford Sales
AGREEMENT BETWEEN THE TOWN OF LOS GATOS
AND DOWNTOWN FORD SALES
FOR THE PURCHASE OF THREE
2009 FORD CROWN VICTORIA
POLICE INTERCEPTOR VEHICLES
THIS AGREEMENT is made and entered into in the Town of Los Gatos, County of
Santa Clara, State of California, by and between the Town of Los Gatos, a municipal
corporation [hereinafter "Town"], and Downtown Ford Sales [hereinafter "Vendor"], as of this
day of , 2010.
RECITALS
(A) Quotations were sought by the Town for the purchase described in this
Agreement, and Vendor was found to be a responsible supplier for this purchase.
(B) Vendor represents that it is a qualified and competent supplier of the vehicles to
be purchased tinder this Agreement.
IT IS AGREED AS FOLLOWS:
1. Supplies and Terms. Vendor hereby agrees to deliver to the Town of Los Gatos
Parks and Public Works Department at 41 Miles Avenue, Los Gatos, CA 95030 three 2009 Ford
Crown Victoria Police Interceptors Vehicles, with standard factory equipment including options
as described in Exhibit A hereto. The terms and conditions are as follows:
(1) Price. Town shall pay Vendor the total amounts defined nl Exhibit A, F.O.B.,
$72,338.33 which includes sales tax, delivery, CA tiro tax, and vehicle registration. Payment
shall be net 30 days from delivery.
(2) Delivery. The delivery of the items and materials shall be no later than May
7, 2010. Delivery shall be made between 7:00 a.m. and 2:30 p.m. on weekdays that are not
Town holidays.
2. Time of the Essence. Prompt delivery of the items and materials is essential to
this Agreement.
3. Equal Employment Opporhmity. Vendor warrants that it is an Equal Opportunity
Employer and shall comply with applicable regulations regarding equal employment
opportunity. Vendor shall not discriminate in the employment of any person because of race,
color, national origin, ancestry, mental or physical disability, medical condition, marital status,
sex, age, or sexual preference, unless based upon a bona fide occupational qualification pursuant
to the California Fair Employment and Housing Act.
4. Notices. All notices to be given with respect to this Agreement shall be addressed
as follows:
C:\Users\sconway\AppData\Local\Temp~grpwise\Agreement with Downtown Ford Sales to purchase 2009 Ford Cro.doc
ATTACHMENTI
To Town: To Vendor:
Town of Los Gatos Downtown Ford Sales
Parks and Public Works Department 525 N 16`x' Sheet
41 Miles Avemie Sacramento, CA 95814
Los Gatos, CA 95030 ATT: Dave Forbes
5. Waivers. Waiver of a breach or default under this Agreement shall not constitute
a continuing waiver or a waiver of a subsequent breach of the same or any other provision of the
Agreement.
6. Modifications. No modification, waiver, termination, or amendment to this
Agreement is effective unless made in writing signed by the Town and the Vendor.
7. Severability. If any term of this Agreement is held invalid by a court of
competent jurisdiction, the remainder of this Agreement shall remain in effect.
8. Entire Agreement. This Agreement sets forth the entire understanding between
the parties.
Vendor shall supply vehicles per Town's Request for Proposal dated March 24, 2010 referenced
in Exhibit A.
IN WITNESS WHEREOF, the Town and the Vendor have executed this Agreement on
the date above written.
Town of Los Gatos, by:
Greg Luson, Town Manager
Downtown Ford Sales, by:
Signature
Recommended by:
Todd Capurso
Director of Parks and Public Works
Print Name
Approved as to form:
Michael Martello, Interim Town Attorney
Attest:
Town of Los Gatos, Los Gatos, CA
Jackie Rose, Clerk Achnhzistrator
G\Users\sconway\AppData\Local\Temp\XPgrpwiseWgreemen[ with Downtown Ford Sales to purchase 2009 Ford Cro.doc
Q~~ I ~~IO~ DF0 3 241 01 5 5
DOWNTOWN FORD SALES
525 N16th Street, Sacramento, CA. 95814
916-442-6931 fax 916-491-3138
QUOTATION
Customer
Name
Address
City
Phone
CITY OF LOS GATOS
STEVE REGAN
Date 3/24/2010
REP FORBESS
Phone
FOB
Qty Description Unit Price TOTAL
3 2009 FORD CROWN VICTORIA POLICE SEDANS $24,707.00 $74,121.00
PER GROUP S-3 TUTONE FOUR DOORS AND ROOF
WHITE, BALANCE BLACK
-3 PROMPT PAY DISCOUNT (5%) $1,235.35 ($3,706.05)
-3 SPECIAL DISCOUNT $1,000.00 ($3,000.00)
-3 ADDITIONAL DISCOUNT $500.00 ($1,500.00)
95
$65
914
,
.
Payment Details SHIPPING
$300.00
o _
Taxes s.zs $6,097.13
O TIRE FEE $26.25
O TOTAL $72,338.33
Office Use Only
CITY OF SACRAMENTO CONTRACT
ATTACHMENT2