BACKGROUND/DISCUSSION:
The police department was approved to purchase four (4) replacement police Tahoe's in December of 2021. Due to computer chip shortages, police package units were not built in adequate quantities resulting in a shortage of police rated Tahoe's. Our vendor has notified us that units are now available.
The pricing for these units has increased by roughly $5,700 per unit, or a total of roughly $22,800. The government pricing offered in December of 2021 was not a locked price bid, meaning that actual cost per unit could increase or decrease depending of cost to manufacture the unit, at the time it was built.
FINANCIAL IMPACT:
Four (4) police Tahoe's @ $42,575 ea. or total of $179,515.00 plus related equipment estimated to be $100,600. Equipment has also increased in price due to inflation.
Total Financial impact: $280,115
This purchase of vehicles was approved in the FY21/22 budget in the amount of $239,760.
Funding is provided through the Crime Control Prevention District (CCPD), which is a sales tax based revenue the city collects that specifically funds police related equipment and officers. There are funds available to cover the increased amount.
RECOMMENDATION:
Staff recommends that Council approve the replacement vehicles.