That the City Council authorize City Manager to issue a purchase order in the amount of $288,151.65 to Puente Hills Ford of Puente Hills, California, for the purchase of five (5) new Police Pursuit vehicles that will be retained on hand to replace existing police vehicles, as necessary. 

At its regular meeting on Monday, December 15, 2025, the City Council approved a purchase order for four (4) police pursuit vehicles through Olathe Ford Sales, Inc. of Olathe, Kansas.  In staff's ongoing efforts to continue proactive maintenance of the City's vehicle fleet to reduce ongoing repair costs and extend the useful life of in service vehicles, staff pursued an additional purchase of four (4) more police pursuit vehicles to add to the initial purchase order.  This purchase would have allowed the City to take advantage of discounted pricing and included an extended warranty package of 8 years/100,000 miles with a zero deductible and delayed start for both the manufacturer and extended warranty coverage until each vehicle is placed into service.  The additional vehicles would be maintained on hand to allow staff to secure replacements for the City's existing frontline police fleet this fiscal year at a known price, while maintaining existing units and supporting the City's vehicle replacement schedule over the next several years. This strategy was estimated to save the City approximately $50,000 by establishing the pricing of future replacement vehicles at today's rates.  

While undertaking the analysis for this potential vehicle purchase, staff also obtained quotes from other dealerships for future City police vehicle replacements.  While in discussions with Puente Hills Ford, staff was informed that another agency had recently canceled its vehicle order shortly before taking delivery, leaving five (5) police pursuit vehicles available immediately and ready for delivery.  Staff requested a quote and received pricing that included vehicle build specifications and the same extended warranty package of 8 years/100,000 miles with a zero deductible and delayed warranty activation until each unit is placed into service. The quote provided by Puente Hills Ford was priced approximately $558 less per vehicle than the City's recent purchase at Olathe Ford, for a grand total cost of $288,151.65, or $57,630.33 per vehicle. 

Given current economic conditions and the potential of inflationary pressure affecting future vehicle purchase costs, staff recommends that the City Council approve and authorize staff to secure all five (5) available police pursuit vehicles from Puente Hills Ford so that they can be maintained on hand for use to replace police pursuit vehicles as needed. Purchasing the vehicles now allows the City to take advantage of the available cost savings rather than acquiring them later on an as-needed basis at potentially higher price points.  

The adopted FY 2025-26 Fleet Replacement Budget cost center 600871-85006 (Vehicles) has sufficient funds to cover the purchase of these five (5) additional new Police vehicles. The $288,151.65 quote provided by Puente Hills Ford, for the purchase of these five (5) Police vehicles, is the most competitive bid that staffing secured from three other dealerships that provided quotes and is less costly, per unit, than the City's recent purchase of similar vehicles from Olathe Ford Sales, Inc.