The URL can be used to link to this page

Home My WebLink AboutCOM 0240.004 2002-2004 HAWAII POLICE DEPARTMENT FLEET VS. SUBSIDIZED VEHICLE REPORT INTRODUCTION This study was done to compare a police subsidized vehicle program versus a police fleet program. West Hawaii Crime Stoppers (WHCS) did a study of their own by contacting Ford Motor Company Municipal Financing in Dearborn, Michigan. WHCS obtained costs estimates from Ford Motor Company for a total of 396 police vehicles, however in calculating the costs for their study, utilized a figure of only 382 police vehicles using the same cost factor. WHCS used the figure of 191 vehicles as being phased in for the first year of implementation and 191 units in the second year of implementation. In compiling this report, our department utilized the same amount, make, mode] and base cost of the vehicles that were used by WHCS in their vehicle study. [<EC.rr~r.:.~ Jlnro...__._..__.._._ _ f3y.... _ VEHICLE SPECIFICATIONS Date__.____~r.r(~ _._..T._.__ County Counci(% ' In their study WHCS identified the Ford Crown Victoria with an estimated cost of 525,995.00 per unit and a Ford Taurus at $20,000.00 per unit. The Crown Victoria can be purchased with a "Police Package" which includes a heavy-duty suspension, rear end, and transmission. The Ford Taurus is an "off the lot vehicle", with no special features. Neither of these vehicles are equipped with a light bar, partition cage, safety backseat, decals or specialty painting. The estimated cost obtained by WHCS is for the vehicles alone and does not include these items nor does it include installation. The following figures represent the five-year cost for 382 units which does not include any additional costs. Subsidized Vehicles Fleet Vehicles ' (Based on estimate provided to WHCS by Vehicles FORD Motor Co. 4.73%, APR included & Monthly Yearly Cost 5 Year cost 5 Year Cost Yearly Cost Monthly Number Cost (County) (County) (County) (County) Average ( er unit) Primary 284 $488.00 $1.663,104.00 58,315,520.00 $9,784,484.03 $1,956,896.81 5426.90 Su ort 98 $450.00 $529,200.00 $2,646,000.00 Sub Total 382 A 69.00 $2 192,304.00 $10,961,520.00 $9,784,484.03 $1,956,896.81 $426.90 Although on the surface there appears to be cost savings by purchasing Fleet vehicles, the figures do not include additional costs, such as police equipment, insurance, maintenance etc. Comm, ~ Ref. To- _ Ref. Opfe 7 ZQQ3 Page o HAWAII POLICE DEPARTMENT FLEET VS. SUBSIDIZED VEHICLE REPORT VEHICLE WARRANTIES These vehicles come with the standard 36,000 mile/36 month wattanty, however an extended warranty to cover the five year buy/lease program which is the base for WHCS comparison was not included. According to Orchid Isle Auto Center an extended warranty is available, however if vehicles are used for Law Enforcement purposes the cost is approximately $5,000 fora 5-year period commencing from the date of the initial lease. It should be noted that wattanty repair does not cover "wear and tear" items (brake pads, fan belt, hoses, fuses etc). The following figures represent the five year cost for 382 units to include an extended warranty of 5 years. Subsidized Vehicles Fleet Vehicles (Based on estimate provided to WHCS by Vehicles FORD Motor Ca. 4.73% APR included & Monthly Yearly Cost 5 Year cost 5 Year Cost Yearly Cost Monthly Number Cost (County) (County) (County) (County) Average ( er unit) Prima 284 $488.00 $1,663,104.00 $8,315,520.00 $9,784,484.03 $1,956,896.81 $426.90 Su ort 98 $450.00 $529,200.00 $2,646,000.00 Warranty N/A N/A N/A N/A $1,910,000.00 $382,000.00 $ 83.33 ($5000.00) i Sub Total 382 A 69.00 $2 192,304.00 $10,961,520.00 $11,694,484.00 $2,338,896.81 $510.23 In contacting the Orchid Isle Auto Center, the Ford Dealership that would be doing the repairs or wattanty repairs, it is undetermined as to the "tum around" time (in/out). Many parts need to be flown in and depending on the repair, no time element can be obtained only estimates. Minor repairs are estimated to take 1-2 days with major repairs as much as 8-10 days. The hourly rate for repairs are $83.00 an hour. A representative from Orchid Isle Auto Center, cited that additional vehicles would have to be purchased as "back-up vehicles" and the recommended ratio being one spare to each three fleet vehicles, which based on 382 units, an additional 127 vehicles need to be purchased/leased. VEHICLE BUY-BACK PROGRAM WHCS cited the Ford Motor Company buy back cost of $1.00 for each fleet unit after the five year buy/lease program and WHCS estimated that the resale price of the used fleet vehicles would be conservatively $5000.00. The Honolulu Police Department's Fleet/Maintenance Manager, Bill Roden, was contacted in regards to their auction of fleet vehicles. With the base of five years (depending on Page 2 of 9 HAWAII POLICE DEPARTMENT FLEET VS. SUBSIDIZED VEHICLE REPORT condition and mileage 3-6 years) of service the average auction price was $200.00 to $500.00 per unit. On occasion there may be a support vehicle in good shape with low mileage that may auction for $1200.00. In contacting several mainland vehicle re-furbishing companies, they may retail a refurbished fleet unit for $5000.00 after purchasing the units from the various police departments at auction. The refurbishing company prior to resale will go as far as changing the engine and transmission if necessary, also refurbish the interior, removing any Law Enforcement related equipment (i.e. plastic seats, separation cage, etc.) In regards to purchasing used fleet vehicles from Hawaii, the price would have to be extremely low and be worth the shipping costs back to the mainland, however, Hawaii is usually not considered in their re-furbishing program. EMERGENCY EQUIPMENT The study prepared by West Hawaii Crime Stoppers (WHCS) does not include unrealized costs that would be associated with purchase and installation of emergency equipment. The following is estimated equipment for Fleet Vehicles, not including installation E ui ment Units Cost Initial Cost Divided 5 ears Divided 284 units Divided 12 months Li ht Bar 284 $615.95 $174,929.80 $34,985.96 $123.19 $10.27 Partition 284 $359.93 $102,225.80 $20,445.16 $ 71.98 $6.00 Safet Seat 284 $369.00 $104,796.00 $20,959.20 $ 73.80 $6.15 Decals 284 $220.00 $62,480.00 $12,496.00 $44.00 $3.67 Sub Total 81,564.90 $444,431.60 $88,886.33 $312.97 $26.08 e ui ment The following figures represent the five year cost for 382 units to include an extended warranty of 5 years and cost of equipment based on the above estimates. Subsidized Vehicles Fleet Vehicles (Based on estimate provided to WHCS by Vehicles FORD Motor Co. 4.73% APR included & Monthly Yearly Cost 5 Year cost 5 Year Cost Yearly Cost Monthly Number Cost (County) (County) (County) (County) Average er unit) Prima 284 $488.00 $1,663,104.00 $8,315,520.00 $9,784,484.03 $1,956,896.81 $426.90 Su ort 98 $450.00 _ $529,200.00 $2,646,000.00 Warranty N/A N/A N/A N/A $1,910,000.00 $ 382,000.00 $ 83.33 ($5000.00) E ui N/A N/A N/A N/A $ 444,431.60 $ 88,886.33 S 26.08 Sub Total 382 A 69.00 $2 192,304.00 $10,961,520.00 $12,138,915.63 $2,427,783.13 8536.31 Page 3 of 9 HAWAII POLICE DEPARTMENT FLEET VS. SUBSIDIZED VEHICLE REPORT COST COMPARISON FOR TAKE-HOME FLEET VS. SUBSIDIZED VEHICLES West Hawaii Crime Stoppers (WHCS) utilizing estimates obtained from Ford Motor Credit Company proposed a five year buy/lease payment program phased in on two separate years, however in reviewing their calculations they do not reflect the fifth year lease cost for the 142 Crown Victorias and 49 Taurus Sedans phased in on year two. The following chart depicts a comparison between the two programs with additional unrealized costs that were not factored in by the WHCS study. Subsidized Vehicles Fleet Vehicles Subsidy Monthly Cost Yearly cost Yearly Cost Monthly Cost Monthly Vehicles Amount (County) (County) (County) (County) Average & (per unit) Number Prima 142 $488.00 $69,296.00 $ 831,882.00 $1,022,848.44 $85,212.12 $446.14 Su ort 49 $450.00 $22,080.00 $ 264,600.00 Sub 191 $91,346.00 $1,096,155.00 $1,022,545.44 $85,212.12 $446.14 Total Maint 191 $100.00 N/A N/A $229,200.00 519,100.00 $100.00 Inclusive Cleaning 191 $40.00 N/A N/A $91,680.00 57640.00 $40.00 Inclusive) Comp/ 191 $110.00 N/A N/A ~ $282,120.00 521,010.00 $110.00 Collision (Inclusive) Liabilit 191 $31,144.46 $373,733.52 $373,733.52 $31,144.46 $163.06 Stora e 191 N/A N/A N/A 5697,150.00 558,095.83 $304.17 O/T 191 N/A N/A N/A $417,304.44 534,775.37 $182.17 Total 191 $469.00 5122,490.46 51,469,888.52 $3,083,977.68 $256,998.00 $1345.54 avera e Factors: 51,022,848.38 WHCS figure represents 142 Crown Victoria x 49 Ford Taurus x Ford Co. payment factor of .218900 Average police monthly miles = 1210 miles x 12 = 14,523 x Syear program = 72,61 S miles Average police fleet unit longevity = 2 .S years Liability Insurance = 51956.72 annually $10.00 a day storage charged x 368 days x 191 units $8.76 (lowest scale PO R at .S hrs) x 21 working days x 12 months x 191 units Maintenance and Cleaning fees is a monthly average based on officer's yearly expenditures. Page 4 of 9 HAWAII POLICE DEPARTMENT FLEET VS. SUBSIDIZED VEHICLE REPORT Unrealized costs that were not considered and are the officer's responsibility under the subsidized vehicle program includes: ~ Vehicle maintenance fees (tires, servicing, etc.) ~ Vehicle cleaning (detailing, washing, etc.) > Comprehensive/Collision Insurance Vehicle storage (garage) Overtime costs for maintenance/cleaning. (In accordance with FLSA provisions, employees taking home County owned vehicles may be compensated for maintenance/c I eaning.) > Additional overtime costs not considered for fleet "take-home" vehicles may involve officers having to be compensated for travel time to and from duty station. Note officers are not required to reside in the district they are stationed. Currently officers do commute from Hilo to Kau, Hilo to Honokaa, Hilo to Kona, Waimea to Kona, and other commriting combination destinations. PARKING FACILITIES The study prepared by West Hawaii Crime Stoppers (WHCS) does not include unrealized costs that would be associated with the need for additional parking facilities to accommodate the Fleet Vehicles. Currently our department would not be able to accommodate parking for Fleet Vehicles in the event we transition to a "non-take home" fleet to eliminate costs associated with officers having to maintain the vehicles. A conservative estimate for stalls on County-owned property would be approximately $1,500.00 per stall or $286,500.00 cost for 191 vehicles. In the event we would need to purchase land to accommodate the vehicles, a conservative estimate would be approximately $5,000.00 per stall or $955,000.00 cost for 191 vehicles. MAINTENANCE FACILITIES The study prepared by West Hawaii Crime Stoppers (WHCS) does not include unrealized costs that would be associated with maintenance and repairs of vehicles. The charts incorporated into this report is calculating maintenance fees For vehicles based on an average $100.00 monthly fee, that officers are currently responsible for under the subsidized vehicle program. Note that due to the geographical size of the island, our department would need a minimum of at least two maintenance facilities that would need to be constructed, one for the East side and the other for the West side. Page S of 9 HAWAII POLICE DEPARTMENT FLEET VS. SUBSIDIZED VEHICLE REPORT In conducting our research, staff obtained the following cost estimate based on a recently constructed private automobile maintenance facility in Hilo. Item Size/No. A rox. Cost Yearl Cost Monthl Cost The full Land Y< Acre $240,000 cost does Pro ert Tax $5,000 not Building Two car $130,000 include 2000 sf obtaining E ui ment $125,000 $7,000 of permits, Personnel 3 $48,000 $4,000 license, Su ervisor 1 $24,000 $2,000 contractor, Maintenance $6,000 $500 EPA Insurance $12,000 $1,000 study, Trainin $5,000 $416 Environm Inventory $23,000 ental impact Total $595,000 $110,000 $30,916 and other factors The following figures were obtained from the Maui Police Departmeut Fleet study completed in July 2002. This represents salary scale for motor pool facility staff. Position Title Salary Motor Pool coordinator $29,712.00 Utilit worker $24,282.00 Attendant full time) $22,290.00 Attendant Part time $10,896.00 Car Washers $16,796.00 Premium a $1,900.00 Total $117,318.00 The Honolulu Police Department has two maintenance facilities which has 40 employees consisting of 3 mechanics and 6 station attendants, the balance of the employees are clerical and fleet coordinators and radio/computer installers. They operate 24 hours a day and do not handle any repairs on the subsidized vehicle. The majority of the marked vehicles are in the Waikiki area and run three vehicles per beat. The breakdown of fleet and subsidized vehicles currently in the Honolulu Police Department's inventory is as follows: > Subsidized Vehicles 1217 Marked Fleet Vehicles 608 > Total 1817 Page 6 of 9 HAWAII POLICE DEPARTMENT FLEET VS. SUBSIDIZED VEHICLE REPORT The following is a breakdown of the Honolulu Police Department's Marked Fleet: Patrol Car 306 Station wa on l Witness Protection 1 Trainin Patrol Cars 8 Trainin Skid Car 1 Trainin Car 5 Assi ed Solo Bike 35 Trainin Solo Bike 9 Cushman 37 GO4 7 2 ton Command Truck 1 4x4 Bomb Truck 1 Padd Wa on 4 P/U Truck 13 4x4 Blazer 2 4x4 Jimm 2 4x4 Suburban 3 Suburban 1 4x4 Tahoe 2 4x4 Bronco 1 Car o Van 18 Passen er Van 15 Prisoner Van 7 Mini Passen er Van 1 Mini Patrol Van 3 Lab Van 1 Unlit Van 1 4x4 Ex edition 1 Bus 4 AD VANTAGES/DISADVANTAGES Advantages of Subsidized Vehicle Program: ~ Complete activation of all sworn personnel if needed in emergency situations. ~ No back-up vehicles needed, officers responsible for providing replacement vehicle for duty in the event of damage or repair to subsidized unit incurred as a result of officer responsibility or wear and tear. Page 7 of 9 HAWAII POLICE DEPARTMENT FLEET VS. SUBSIDIZED VEHICLE REPORT ~ Better response time to emergencies, off-duty officers still available in their vehicles not having to return to pick-up a marked unit. ~ All necessazy equipment available off duty in subsidized unit in the event that an emergency or hazard is encountered > Officer more responsible to his own vehicle > County saves on insurance (Officer pays for Comprehensive/Collision insurance) ~ Officer familiarity with own vehicle and less likely to take driving risks. > County saves on maintenance, no motor pool facility or additional staff needed. (mechanics, clerical, fleet mgrs.) > Subsidized vehicles have greater longevity (max 10 years) > Officer usually purchases a compatible vehicle to their assigned district for response for service in remote areas. (more SUV's available) > Officer would be more visible while off duty than a fleet vehicle parked in a motor pool > Officer responsible for tow charges if vehicle breakdown not work related > County saves on storage > No extra cost for time (cleaning, repair)spent on vehicle by officer ~ Easily transformed to emergency vehicle > Officer commuting puts wear and tear on own vehicle > Subsidized vehicles are readily identifiable to the residents and visitors alike. The blue strobe light affixed to the top of the vehicle is highly visible during the day or night.(flyer photo program with the airport, HVB, airlines could satisfy infrequent visitor to the be familiarized with police vehicle. (Project for WHCS) Disadvantages of Subsidized Vehicle Program: > Not standardized in color (appearance) ~ No Rear cage > Officer is taxed on gas, oil and subsidy as income Rising cost of newer vehicles > Transport of prisoners await caged blue and white > Retrofit equipment (roof rack) > Vehicle not equipped as "Police Package" Page 8 of 9 HAWAII POLICE DEPARTMENT FLEET VS. SUBSIDIZED VEHICLE REPORT Advantages of Fleet Vehicle Program: > Standardized vehicles > Prisoner more confined n No cost for officer Disadvantages of Fleet Vehicle Program: ~ Longevity 2.5 - 3 years ~ Susceptible to vehicle abuse > High start up cost > Standard 36 month 36K mile warranty unless purchase of extended warranty > Need 3 maintenance Facilities to accommodate logistical concerns > Need to hire new staff to man facilities (possible 24 hrs.) > Bidding process ATTACHMENT ] This attachment reflects a five year projection based on longevity and cost of both programs to include additonal unrealized costs such as cleaning, maintenance, insurance, etc. Page 9 of 9 ATTACHMENTI Table 1 represents West Hawaii Crime Stoppers (WHCS) cost estimates for abuy/lease plan for a fleet vehicle. Calculations are based on the longevity of a fleet vehicle of 2.5 years. Further calculations computed to include a five year buy/lease plan as provided by WHCS from a price quote from Ford Motor Co., Dearborn Michigan. Prices were for a Ford Taurus ($20,000 per unit) Ford Crown Victoria ($25,995). Figures represent cost only and not equipment ,accessories insurance, maintenance, maintenance facility, maintenance staffing, cleaning, etc. Table 1 Projected Per Unit 2.5 years 3 years 3.5 years 4 years 4.5 years 5 years Units _ 1 Su ort $20,000 $ 8000.00 $ 6666.67 $ 5714.28 $ 5000.00 $ 4444.44 $4000.00 1 Prima $25,995 $ 10,398.00 $ 8665.00 $ 7427.14 $ 6498.75 $ 5776.67 $5199.00 Table 2 represents WHCS cost of vehicles (table 1) x the number of vehicles, depicting a cost factor per year, per vehicle, beginning at a fleet vehicles longevity years of 2.5 years and extended calculation for 5 years. Table 2 2.5 rs 3 rs 3.5 rs 4 rs 4.5 rs 5 rs 49 Su ort Annual = $ 392,000.00 $ 326,666.83 $ 279,999.72 $ 245,000.00 $217,777.56 $196,000.00 142 Prima Annual= $1,476,516,00 $1,230,430.00 $1,054,653.88 $ 922,822.50 $820,287.14 $738,258.00 191 Total Annual= $1,868,851.00 $1,557,096.00 $1,334,653.00 $1,167,822.00 $1,038,064.00 $934,258.00 Fleet Table 3 represents the present subsidized program representing 191 vehicles at the current scale of $450.00 per support unit and $488.00 per primary unit monthly x 12 for an annual figure with extended calculations to fve years. Table 3 2.5 rs 3 rs 3.5 rs 4 rs 4.5 rs 5 rs 49 Support $450x12 Subsidize $5400.00 $264,600.00 $264,600.00 $264,600.00 $264,600.00 $264,600.00 $264,600.00 142 Primary $488x12 Subsidize $5856.00 $831,552.00 $831,552.00 $831,552.00 $831,552.00 $831,552.00 $831,552.00 191 Total Subsidize Annual= $1,096,152,00 $1,096,152.00 $1,096,152.00 $1,096,152.00 $1,096,152.00 $1,096,152.00 Table 4 represents the annual savings for the County plus or minus for each extended years calculation Table 4 2.5 ears 3 ears. 3.5 ears 4 ears 4.5 ears 5 ears Plus or Annual = County + County + County + County + County - County - Minus $772,699.00 $750,944.00 $238,501.00 $71,670.00 $57,988.00 $161,894.00 Plus or Monthly = County + County + County + County + County - County - Minus $64,391.58 $62,578.67 $19,875.00 $5972.50 $4832.33 $13,491.00 Plus or Per Unit County + County + County + County + County - County - Minus $337.13 $327.64 $104.06 $31.27 $25.30 $70.63 Table 5 thru 10 represent the cost of the fleet vehicle provided by WHCS now to include basic maintenance, cleaning and insurance. Table 5 Longevity Unit Cost Monthly + Maint + Clean + Comp/Collision Liability = Monthly 2.5 ears + Total 1 Su ort $8000.00 $666.67 $100.00 $40.00 $110.00 $163.06 $1079.73 _ 1 Prima $10398.00 $866.50 $100.00 $40.00 $110.00 $163.06 $1279.56 'I 1 Support $5400.00 $450.00 $450.00 Subsidize 1 Primary $5856.00 $488.00 $488.00 Subsidize i Page 1 of 2 Table 6 _ (3 years) Unit Cost Monthly + Maint + Clean + Comp/Collision Liability = Monthly + Total 1 Su ort $6666.67 $555.56 $100.00 $40.00 $110.00 $163.06 $968.62 1 Prima $8665.00 $722.08 $100.00 $40.00 $110.00 $163.06 $1135.14 1 Support $5400.00 $450.00 $450.00 Subsidize 1 Primary $5856.00 $488.00 $488.00 Subsidize Table 7 _ Longevity Unit Cost Monthly + Maint + Clean + Comp/Collision Liability = Monthly 3.5 ears + Total 1 Su ort $5714.28 $476.19 $100.00 $40.00 $110.00 $163.06 $889.25 1 Prima $7427.14 $618.93 $100.00 $40.00 $110.00 $163.06 $1031.99 1 Support $5400.00 $450.00 $450.00 Subsidize 1 Primary $5856.00 $488.00 $488.00 Subsidize Table 8 Longevity Unit Cost Monthly + Maint + Clean + Comp/Collision Liability = Monthly 4 ears + Total 1 Su ort $5000.00 $416.67 $100.00 $40.00 $110.00 $163.06 $829.73 1 Prima $6498.75 $541.56 $100.00 $40.00 $110.00 $163.06 $954.62 1 Support $5400.00 $450.00 $450.00 Subsidize 1 Primary $5856.00 $488.00 $488.00 Subsidize Table 9 Longevity Unit Cost Monthly + Maint + Clean + ComplCollision Liability = Monthly ~ 4.5 ears + Total 1 Su ort $4444.44 $370.37 $100.00 $40.00 $110.00 $163.06 $783.43 1 Prima $5776.67 $481.39 $100.00 $40.00 $110.00 $163.06 $894.45 _ 1 Support $5400.00 $450.00 $450.00 Subsidize 1 Primary $5856.00 $488.00 $488.00 i Subsidize i Table 10 Longevity Unit Cost Monthly + Maint + Clean + ComplCollision + Liability = Monthly 5 ears Total 1 Su ort $4000.00 $333.33 $100.00 $40.00 $110.00 $163.06 $746.39 1 Prima $5199.00 $433.25 $100.00 $40.00 $110.00 $163.06 $846.31 1 Support $5400.00 $450.00 $450.00 Subsidize 1 Primary $5856.00 $488.00 $488.00 Subsidize 6-13-03 djr Page 2 of 2 ~ ~ WEST HAWAII CRIME STOPPERS, INC. Post Office Box 2811 Kailua-Kona, Hawaii 96745 ~ Telephone (808) 322-9969 "THE PRICE OF VISIBILITY-FINAL REVISION" Fax: (808) 322-2322 FOUNDED 1981 Tips Line: (808) 329-8181 A. YEAR ONE (BUDGET YEAR 2003-2004) 1. SUBSIDIZED VEHICLES 142 @5488. 00 X 512 S 831, 552. 00 49 @5450. 00 X 12 264, 600. 00 TOTAL SUBSIDED ALLOWANCE ~ 1, 096, 152. 00 (i) ADD LEASE/PURCHASE MARKED VEHICLES 142 PATROL CARS~9 DETECTIVE CARS 1, 022, 545. 38 TOTAL PAYMENT VEHICLES YED.R O~lE 5 2, 118, 697. 38 B. YEAR TWO-(BUDGET YEAR 2004-2005) ADD LEASEIPURCHASE MARKED VEHICLES 142 PATROL CARS~49 DETECTIVE LEASEIPURCHASE PAYMENT 5 2, 045, 090. 76 C. YEAR THREE (BUDGET YEAR 2005-2006) LEASEIPURCHASE PAYMENT $ 2, 045, 090. 76 D. YEAR FOUR (BUDGET YEAR 2006-2007) S 2, 045, 090. 76 E. YEAR FIVE (BUDGET YEAR 2007-2008) $ 2, 045, 090. 76 F. FIVE YEAR SUMMARY (i) Total for subsidized payments if marked plan is not adopted. Based on current allowance figure with no increase. (Very unlikely since SHOPO has requested an increase for the fiscal year 2003-2004 S 10, 975, 100. 00 (ii) Total of leaselpurchase payments $ 9. 202, 908. 42 (iii) Total subsidized allowance paid $ 1, 096, 152. 00 (iv) Total paid for vehicles $ 10, 299, 060.42 (v) Purchase of 191 vehicles as per LeaselPurchase agreement 5 191.00 (vi) Total S 10, 299,251 42 G. Less sale of 191 vehicles at an average price of $5, 000. 00 each. (Very conservative estimate) S 955, 000.00 (i) TOTAL VEHICLE PAYMENT 5 9, 344, 251.42 H. COST PER YEAR OVER FIVE YEAR PERIOD $ 1, 868, 850. 28 Alan J. Pratt-, Ph.D., President for Board of Directors, West Hawaii Crime Stoppers Ford Motor Credit Company The American Road P.O. Box 173^ Dearborn, Michigan a8121 t /J9 April 8, 2003 ?Ir. Ron Colz Ha~~aii County 76-625; Kolulia Street Kailua-Kona, HI 96740 Rz: Ford `lunicipal Finance Program - Quota ion for County of Hawaii, HI Bid Number: 30496 Dear ?[r. Cole: Plzasz re~~izw the following information. Rates and payment factors are applicable for total amounts funded over 59 ~~lillion. The quuee ii good until 07f3 iQ003. This finance proposal applies to: l u:uttity Descriotion Price 9S 2003 Ford Taurus Sedans @ an estimated 520,000 each 'Est. S 1,960,000.00 293 ?003 Ford Crown Victoria Police Interceptors a an estimated $2~,99~ each *Est. 57,746,E 10.00 (Rau;z) Number of Payment Payment Total Amount Funded Payments Payment Timine A.P.R. Factor Amount "Est. 59,706,510.00 ~ ANNLinAdv 4.73% 0.218900 52,124,7».04 '*Pfease co+unet a Jeafersl+ip o(eJiaice (or actaaf se!linp price o(vehides llrc lord Tunic ipal Izasz-purchase finance plan requires no security deposit, has no prepayment penalty, no mileage penalty, or hidden ire,. "Che program is non-recourse to the dealer, the same as a cash sale from the dealer to the municipal customzr. At inception, the ne aryipntent title; registration indicates the municipality as Registered Owner, and designates Ford Motor Credit Company, P.O. Box 1739. Dearborn, :\iI 4S 121-1739, as First Lienholdzr. 4t term end the municipality buys the equipment for 51 The municipality, as l)~~ nrr of rccurd, is eligible for Ford Govenmrznwl Price Concessions or other discounts, to reduce product cost. r'l,~„~r r,ih_ Fa-d Credit's finnrrcuig is subject ta: !I Conyrktcd and notari_ed Mmricipaf Finm+ce dppfication _'+n rrrrrr and approcrrf oJthe ,L(unicipnfity's nco most recent nudited finnnciaf statero+enrs it .thinrcrl/t~ acceprabfe docamenmtiarr I i' yuu Heal additional information, please contact me at 1-800-241-4199, and press I. Thank you for your interest in Ford municipal uLw~ m,. Sincerely, ~w.G vra .~yos; Barbara Lyons Marketing Coordinator Ford Credit Municipal Finance Program MUNICIPP.L LEASING IS NOT A TRUE LEASE. IT IS A LEASE/PURCHASE PROGRAM WITH FULL OWNERSHIP AT LEASE END. • It provides an alternative to bonds as a source of tax exempt financing. • It resembles a conditional sates transaction in fotTrt. I. Lessee finances the acquisition over the term of the lease. Z. Payments are made up of principal and interest; lessee acquires equity with each payment (first payment due upon delivery is al] applied against the principal balance); there is no interest in than first payment at delivery. 3. Lessee purchases vehicle at lease end for SI 4. Title to vehicle passes to Lessee at beginning of lease; Ford Credit is 13rst Lienholder. • No deb[ obligation is created with aLease/Purchase transaction (in most states), because of a non- appropriation clause in the Agreement. Ford Credit bears the non-appropriation risk. WHO IS ELIGIBLE: • State level and below public tax supported entities. • Non-profit organizations may be accommodated; but only on a taxable basis. The rate we charge will be higher because Ford Credit has to pay tax on the interest income we would receive. KE1' PONS TO REMEMBER: • No down payment or security deposit is required. • No orepavment penalty or mileaee restrictions • Flexible payment schedules available (monthly, quarterly, semi-annual and annual) • Competitive tax-exempt interest rates • S t Buyout • Governmental Price Concessions available • Ford ESP, attachment equipment and accessories, State Sales Tax, or other associated costs may be included in finance TERM[ LENGTH CONSISTENT WITH EXPECTED USEFUL LIFE: 1. 2-3 years for Police Pursuit vehicles (4 years with annual payments allowed for police car transactions). 2. 3-4 years for Administrative Cars and Light Trucks 3. -1-~ years for Medium, Heavy Duty Trucks and Tractors 4. Up to f 0 years for Fire Pumpers 5300 UOCU~IENTAT[OY FEE IS REQliIRED FOR TR4NSACTIONS U~tDER 550,000. Visit our wcbsitc www.fordcrcditmunicipal.com