AGENDA CAPTION:
Title
Consider approval of Resolution 2019-202R, awarding a contract to Johnson Grayson Automotive, Inc., doing business as Holiday Chevrolet, for the purchase of twenty 2020 police Chevrolet Tahoes in the amount of $649,780; authorizing the City Manager or his designee to execute the agreement on behalf of the City; and declaring an effective date.
Body
Meeting date: October 15, 2019
Department: Police Department - Bob Klett, Interim Chief of Police (By Lynda Williams, Purchasing Manager)
Amount & Source of Funding
Funds Required: $649,780
Account Number: Funded through financing agreement with U.S. Bancorp Government Leasing and Finance, Inc
Funds Available: $550,000 for equipment and first year financing payment
Account Name: Capital Outlay-Police Vehicle Financing
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Background Information:
This request is to authorize the Police Department’s purchase of twenty (20) 2020 Tahoes from Johnson Grayson Automotive, Inc DBA Holiday Chevrolet, Whitesboro, Texas through the Texas Local Government Purchasing Cooperative TXSmartBuy Contract #070-A1 in the amount of $649,780. The Tahoes will replace the Crown Victoria’s.
The City is authorized by Texas Local Government Code Chapter 271.102 to participate in cooperative purchasing programs to procure goods and services, satisfying any state law requiring the local government to seek competitive bids.
These vehicles are to be financed by U.S. Bancorp for the total amount of $678,973.23, including interest in the amount of $29,193.24. The approval of the amendment to the master finance purchase agreement with U.S. Bancorp Government Leasing and Finance, Inc is on October 15, 2019 City Council agenda.
The City is purchasing twenty (20) Chevy Tahoes which will satisfy the replacement requirements for FY20 and replace five (5) vehicles that have been totaled in the fleet over the last year. Due to vacancies on the force, the City has been able to delay replacing the totaled vehicles until now. Chevy is changing the Tahoe platform and doing a limited manufacturing run for 2020. The revised 2021 Tahoe is expected to be an average of $8,000 more per unit than the 2020 models so the City is purchasing enough vehicles to make all needed replacements. Orders are historically placed late in the calendar year for manufacturing runs, but due to the limited run the order had to be placed earlier to ensure the City would be able to purchase the amount needed at the best price.
Over the past several years, the Police Department has been working on right-sizing the fleet and standardizing vehicles. They are also exploring options to sell the used police vehicles in good condition to other law enforcement agencies saving the City the time and expense of decommissioning these vehicles as required by law to sell at auction.
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Recommendation:
Recommend approval of the purchase of twenty (20) 2020 Tahoes in the amount of $649,780.