Summary
To: Town Commission
From: Stefan Massol, Director of Support Services
Date: 6/15/2021
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Subject:
Title
Vehicle Replacements Approval
Summary:
Town staff is recommending replacement of several vehicles in multiple departments using funding previously set-aside for vehicle and equipment replacement.
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Body
Background/Problem Discussion: For some time the Town has budgeted for funds to be set-aside for future vehicle replacements. In the General Fund, these amounts are transferred each year into the Capital Equipment Replacement Fund while in Water and Solid Waste Funds the vehicles are depreciated each year and the funds are carried into reserves.
In July 2019 the Town began leasing two vehicles through Enterprise Fleet Financing. Enterprise is able to provide analytics to help the Town select those vehicles with the greatest government rebate incentives and highest resale value. They also assist with reselling the Town's vehicles through their large network of secondary market suppliers.
Working with Enterprise Fleet, Town staff identified several vehicles that were previously approved by Town Commission in January 2021. However, due to a shortage of vehicles our order was among the many that General Motors decided to cancel. As GM will begin taking orders in July 2021 for the next model year staff is seeking approval again so that the Town can place orders as early as possible. We hope to acquire vehicles at the optimal price point, however because GM and others are yet to release their pricing or incentives we may choose to substitute manufacturer, limit the order to the half-ton vehicles, or alternatively look for better pricing through dealer stock.
It is likely that factory incentives or government pricing will evaporate for next year, due to the low supply and high demand from a backlog of 18 months' worth of orders. Our strategy that we're proposing to the Commission is...
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