TITLE
title
BUDGET AMENDMENT AND APPROVAL TO PURCHASE FY2022 & FY2023 FLEET VEHICLES
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SPONSORS
sponsor
Toy Beeninga & Raymond Lowe
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BACKGROUND
background
This agenda item includes two (2) requests:
1) Budget amendment to carryforward FY2022 funding for vehicles purchases
2) Approval to purchase FY2022 and FY2023 vehicles
1. Budget amendment to carry forward FY2022 funding for vehicles purchases
Guilford County maintains a vehicle replacement plan in each year’s annual budget. The FY2022 budget funded 66 vehicles for a total cost of $3,377,000. The County issued debt in FY2022 to fund the purchase of the vehicles and the County fully encumbered the purchase of the vehicles.
The vehicles were not delivered as of June 30, 2022. Pursuant to Section 13 of the FY2023 adopted budget ordinance, the County shall roll forward outstanding purchase orders and contracts and add the amount to each appropriation. Under normal operating procedures, these contracts would be carried forward to FY2023 and the purchase completed upon delivery of the vehicles.
However, the orders for Ford F-150 trucks from FY2022 were cancelled by Ford Motor Company due to supply chain issues. As such, the contracts were cancelled and the roll forward of FY2022 funds will require Board action.
As of July 1, 2022, the debt proceeds to purchase these vehicles are in the County’s fund balance. The request for this item is to appropriate the debt proceeds from the General Fund’s fund balance and establish sufficient expenditure budget to re-purchase the vehicles.
2. Approval to purchase FY2022 and FY2023 vehicles
The County has available for purchase 22 vehicles, which include five (5) trucks planned for FY2022 and 17 of 18 planned vehicles for FY2023 Fleet Operations. The purchase will be made utilizing an exemption to bidding under the NC State Contract #070A and NC Sheriff’s Association Contract #22-08-0913.
The total amount of the purchase includes:
• Capital Ford: $431,750.14 for 13 vehicles
• Piedmont Truck Center: $210,493.50 for three (3) vehicles
• Modern Chevrolet: $118,507.50 for six (6) vehicles
Total $760,751.14 for 22 vehicles
In addition, the purchase will incur $22,823 in road use tax (3% of purchase price).
The vehicles to be purchased include:
1) Nine (9) 2023 Ford F-150s from Capital Ford using the NC Sheriff’s Association contract #22-08-0913 for a total of $307,864.62. This amount is within the $164,000 included in the FY2022 budget for five (5) trucks and $174,000 included in the FY2023 budget for five (5) trucks. Given cost escalations of $6,956.16 per vehicle, staff recommend purchasing nine (9) trucks, rather than the previously planned 10.
2) Four (4) 2023 Ford Transit Connect Wagon (7 Passenger Van) from Capital Ford using the NC Sheriff’s Association contract #22-08-0913 for a total of $123,886
3) Six (6) 2023 Chevrolet Malibu from Modern Chevrolet using NC Sheriff Association contract #22-08-0913 for a total of $125,040
4) One (1) 2023 Transit 250 Cargo Van and two (2) 2023 F550 4x4 Cab and Chassis from Piedmont Truck Center using the NC State Contract #070A for a total of $210,493
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BUDGET IMPACT
budget impact
General Fund
$164,000 Increase in Appropriation to Fleet Operation
$164,000 Increase in Appropriated Fund Balance
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REQUESTED ACTION
requested action
Amend the General Fund Budget Ordinance to increase appropriated fund balance by $164,000 and increase appropriation to Fleet Operation by $164,000 and approve vehicle purchases with Capital Ford, Piedmont Truck Center, and Modern Chevrolet.
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