|
Based upon these assumptions, the 1978 H CPD study developed a table ref ecti ng comparable fl eet costs,
<br />shown bel ow:
<br />COMPARABLETABLE
<br />1sT 2ND 2 -YEAR 3RD 3 -YEAR 4T" 4 -YEAR 5T" 5-YEAR 6T" 6 -YEAR
<br />FLEET PLAN YEAR YEAR TOTAL YEAR TOTAL YEAR TOTAL YEAR TOTAL YEAR TOTAL
<br />2 -YEAR LEASED
<br />FLEET 1,130,424 1,164,008 2,294,432 1,260,216 3,554,648 1,298,138 4,852,786 1,405,161 6,257,947 1,447,988 7,705,935
<br />3 -YEAR LEASED
<br />FLEET
<br />1,007,532
<br />1,041,116
<br />2,048,648
<br />1,076,804
<br />3,125,452
<br />1,188,423
<br />4,313,875
<br />1,228,723
<br />5,542,598
<br />1,271,550
<br />6,814,148
<br />COUNTY -OWNED
<br />(2 -Year Trade -In)
<br />1,570,710
<br />573,572
<br />2,144,282
<br />1,362,189
<br />3,506,471
<br />647,182
<br />4,153,653
<br />1,501,850
<br />5,655,503
<br />730,309
<br />6,385,812
<br />COUNTY -OWNED
<br />(3 -Year Trade -In)
<br />1,570,710
<br />573,572
<br />2,144,282
<br />609,260
<br />2,753,542
<br />1,564,054
<br />4,317,776
<br />687,482
<br />5,005,078
<br />730,309
<br />5,735,387
<br />PRIVATELY
<br />OWNED FLEET
<br />734,720
<br />748,831
<br />1,483,551
<br />790,587
<br />2,274,138
<br />806,743
<br />3,080,881
<br />852,019
<br />3,932,900
<br />870,516
<br />4,803,416
<br />D. Peat, Marwick, Mitchell & Co. Review of the Puna Fleet Study
<br />The H CPD study was subsequently revi eNed by Peat, Marwick, Mitchell & Company (PM M & Co.),
<br />which transmitted its findings to Mayor Herbert T. M atayoshi in a report dated May 3, 1979. The
<br />purpose of PM M & Co.'s revi env was to advi se the Pol i ce Department on: (1) the reasonabl eness of i is
<br />underl yi ng assumpti ons; (2) the accuracy and appropri ateness of i is anal yti cal methodol ogy; and (3) the
<br />appropri ateness of the concl usi ons drawn i n the H PD study.
<br />Broadl y, PM M & Co.'s rev env concl uded that " due to hi gh i nterest cost i mpl i ci t i n I eases, the consensus
<br />among [Police] department and County personnel and ourselves was that I easi ng was not a viable
<br />al ternati ve to the County." PM M & Co. cond uded that " based on the data col I ected, the concl usi on that a
<br />f I eet of 15 pri vatel y owned vehi d es woul d have been I ess cost) y was appropri ate and correct." Sl mi I art y,
<br />PM M & Co. found that the " anal yti cal methodol ogy used for accumul ati ng costs i ncurred by the seven
<br />leased Puna vehicles and for projecting costs of 15 privately owned vehicles was accurate and
<br />appropri atel y appl i ed."
<br />PM M & Co. i ni ti al I y di sputed H CPD' s 6-year comparabl a cost survey based upon i is assessment of the
<br />residual (trade-in) value of county -owned fleet vehicles at the end of the six -year period. PM M & Co.
<br />projected the costs to be $3,923,224 for a County -owned fleet with a two-year trade -in schedule and
<br />$3,568,830 for a three -year trade-in, both lower than the projected costs of a privately owned fleet.
<br />H owever, i n December 1978 PM M & Co. resd nded i is f ndi ngs upon presentati on of a H PD addendum
<br />contai ni ng " assumpti ons for f I eet mi I eage and resul tart proj ecti ons for new car costs and trade -i n resi dual
<br />values." PM M & Co. concurred with the methodology contained in H CPD' s addendum and found the
<br />"six -year costs of a County -owned fleet to be consistent with the original study's methodology with
<br />which we concurred." Additionally, PM M & Co. said that it had based its analysis of projected
<br />mai ntenance costs on a prorati on of actual costs i ncurred duri ng the Puna f I eet study, whereas H CPD
<br />assembl ed mai ntenance esti mates based on f gures provi ded by two H i I o automobi I e deal ers.
<br />I n summati on, PM M & Co. stated that " al though the [ Puna Fl eet] study does not state a cond usi on or
<br />recommend whether the County shoul d purchase, I ease, or conti nue wi th month) y car al I owances for
<br />pri vatel y owned vehi d es, the proj ected si x -year costs d earl y favor conti nui ng the present practi ce of
<br />pri vatel y owned vehi cl es."
<br />21
<br />
|