2004-01-AU Hawai‘i County Police Department Vehicles

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The H CPD study concurred wi th the WH CS f i ndi ng that the Ford quotati on for I ease/purchase of 382 cars at 4.73% APR would cost less ($9,784,484.03) over five years than the equivalent five -year cost of 382 subsidized vehicles ($10,961,520.00). H CPD obtai ned i is own bi d quote dated A pri 18, 2003 from the Ford M otor Credi t Company for 298 Ford Crown Victoria Pot i ce Interceptors (2003 model) at $25,995 each and 98 Ford Taurus Sedans (2003 model) at $20,000 each. The cost of the cars totaled $9,706,510. At 4.73% APR, Ford proposed a schedul a of f ve payments at $2,124,755 each. The bi d stated that the Ford M uni ci pal I ease- purchase f nance pl an requi red no securi ty deposi t and had no prepayment or mi I eage penal ty. H CPD then cal cut aced the cost of extended 5 -year warranty based upon a quote f rom Orchi d I sl e A uto Center, a Ford deal ershi p, and determi ned thi s woul d add an addi ti onal $1,910,000 to the f i ve -year cost of a purchased fl eet. H CPD also reported that an Orchid Isle representative recommended the purchase of 127 additional " back -up" vehi d es based upon a rati o of one spare vehi d e for every three fl eet vehi d es. Additionally, H CPD disputed WH CS s estimated $5,000 per car resale value after 5 years. H PD contacted H onol ul u' s pot i ce f I eet manager who i ndi rated that the average aucti on pri ce of vehi cl es 3-6 years old ranged from $200 -$500 per unit. H PD also indicated that high shipping costs precluded much i nterest by mai nl and pol i ce car ref urbi shi ng compani es i n used pol i ce cars f rom H aNai ` i . HCPD stated that certain "unrealized costs [for 191 fleet cars] were not factored in by the WHCS study," as fol I ows: Yearly Cost to County Maintenance ................. ............................... $ 19,100.00 Cleaning ..................... ............................... $ 91,680.00 Comp /Collision Insurance .............................. $252,120.00 Storage ($10 /day x 365 days x 191 units) ......... $697,150.00 Overtime ..................... ............................... $417,304.44 The Department stated that " i n accordance wi th Fai r Labor Standards A ct (FL SA) provi si ons, empl oyees taki ng home County owned vehi cl es may be compensated for [overti me] mai ntenancelcl eani ng." In a subsequent report, the Department's proposed cost of $10 /day for home storage was deemed a " probabl a compensatory i tem." The $10 /day rate was attri buted to " the standard storage fee for towi ng compani es." The report also suggested that "additional overtime costs not considered for 'take-home' vehicles may involve officers having to be compensated for travel ti me to and from duty station." It stated that officers are not required to reside within the district where they are stationed and noted that some officers commute vari oust y from H i l o to Ka` u, H i l o to H onokaa, H i l o to Kona, Wai mea to Kona, etc. The report suggested that i n the event the department transi ti oned to a " non -take home' f I eet, the costs for neN parki ng stal I s for 191 vehi d es (I and purchase and constructi on) woul d conservati vel y approxi mate $5,000 per stall or $955,000.00 for 191 vehicles. The report anti ci pated that at I east two East and West H atvai ` i mai ntenance faci I i ti es woul d be needed and, based upon the cost of "a recently constructed private automobile maintenance facility in Hilo," determined the estimated cost of each facility to be $595,000, excluding costs for obtaining permits, I i cense, contractor, EPA study, environmental impact, etc. 31