Title
Consider a memorandum/resolution authorizing change orders with Silsbee Ford for the total amount of $225,278.
Summary
DATE: April 18, 2023
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Authorization of Change Orders with Silsbee Ford
BACKGROUND AND FINDINGS:
As part of the approved FY 2022 and FY 2023 Fleet Replacement Program purchases, there were forty-nine (49) Police Interceptor patrol units quoted and ordered at 2022 model year pricing. Unfortunately, Ford Motor Company cut production of the last twenty-five (25) of those 2022 model year units and changed them to 2023 model years with higher pricing. These price increases affected two purchase orders (POs). Due to the PO price increases exceeding the $50,000 limit, the change orders require City Council approval.
PO No. 223336, dated 6/9/22, and currently issued for $756,816.20, contains ten (10) 2022 model year Interceptors that would increase by $9,208.00 per unit for a total increase of $92,080.00, reflecting a new PO total of $848,896.20.
PO No. 230549, dated 10/18/22, and currently issued for $1,837,472.23, contains fifteen (15) 2022 model year Interceptors that would increase by $8,708.00 per unit for an increase of $130,620.00, plus an additional $2,578.00 to be added to the totaled/wrecked Interceptor replacement (because the existing light bar was unable to be reused) for a total PO increase of $133,198.00, reflecting a new PO total of $1,970,670.23.
The overall increase of both POs would be an additional $225,278.00
THE ALTERNATIVES CONSIDERED:
1.) Reduce the total number of units ordered by three, which would cause the department to operate in a reduced resource capacity and incur additional repair and maintenance expense to units that are already overdue for replacement.
2.) Obtain approval for the additional funding to provide effective services.
Which alternative is recommended? Why?
The second alternative is recommende...
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