HomeMy WebLinkAboutCC AG PKT 2002-10-14 #F AGENDA REPORT
DATE: October 14, 2002
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Doug Dancs, P.E. Director of Public Works /City Engineer
SUBJECT: FLEET REPLACEMENT: POLICE MOTORCYCLES
SUMMARY OF REQUEST:
The proposed City Council action will authorize the City Manager to enter into a lease
agreement for the lease /purchase of three new motorcycles.
BACKGROUND:
The proposed purchase would replace three existing motorcycles as outlined on page 9 in
accordance of the Council approved 2002 Fleet Management Report. The California
Highway Patrol recently approved a cooperative purchase program that would allow the
City to purchase these motorcycles through the state contract. The Police Department
requested that one of the existing Kawasaki motorcycles be kept as a trainer and spare
unit. The Kawasaki motorcycles require nearly four times the additional maintenance cost
as a BMW. A budget transfer of $3000 from account 001 - 050 -47444 to 001 - 050 -44000 is
requested to account for additional maintenance repairs in lieu of purchasing a fourth
motorcycle. No additional funding is requested from the reserve. Additionally, the City
incurs both direct and indirect maintenance costs by keeping surplus vehicles in its fleet.
Consequently, the remaining Kawasaki motorcycles will be sold as surplus, as
recommended by the Fleet Division.
FISCAL IMPACT:
Funds for this lease are budgeted in the Fleet Maintenance department accounts 001 -050-
47444 and 001- 050- 47999. At the end of the lease, the City will be reimbursed
$9,433.00 for each vehicle returned in satisfactory condition. Staff obtained a financing
quote from Texas Capital Bank at an annual cost of $7,559.88 per bike, including 7%
interest for an annual cost of $22,679.64. The Finance Department is researching
alternate financing options for further cost savings.
RECOMMENDATION:
Staff recommends that the City Council authorize the City Manager to enter into a lease
agreement for the lease of three new motorcycles.
Agenda Item
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Doug Dancs, P.E., Direcbli• Wor ity Engineer
NOTED AND ' ' ' ' OVED:
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Jo :.:.t orski, City Manager
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