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HomeMy WebLinkAboutAGENDA REPORT 2003 0903 CC REG ITEM 10GMOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council i FROM: Richard A. Diaz, Captai v DATE: August 26, 2003 (CC Meeting of 9/3/03) ITEM.— 1 o . Go y. SUBJECT: Consider Replacement of the Kawasaki Motorcycle with a Harley - Davidson Motorcycle and Allocate $19,988.45 from the Fiscal Year 2003/04 Budget Equipment Replacement Fund for the Purchase of a Harley - Davidson Motorcycle. SUMMARY The purpose of this report is to request the purchase of a Harley - Davidson Police Motorcycle to replace the remaining Kawasaki motorcycle. This purchase would enable the police department to replace an aging motorcycle and over a three -year period, to evaluate, which motorcycle would be the most cost beneficial and efficient for traffic enforcement use within the City of Moorpark; the BMW purchased in Roseville, California, or the Harley - Davidson purchased locally within the City of Moorpark. Your Council had previously approved $22,875.67 in the Fiscal Year 2003/04 Budget for replacement of the remaining Kawasaki motorcycle now used by the police department. DISCUSSION The Police Department currently has two motorcycles for traffic enforcement use, the recently purchased BMW Model R1150RT -P /CHP Version Motorcycle and the older Kawasaki KZ 1000 -P Police Motorcycle. Your Council had previously approved $22,875.67 in the Fiscal Year 2003/04 Budget for replacement of the remaining Kawasaki motorcycle and the Kawasaki is now ready for replacement. There are three motorcycle manufacturers producing police motorcycle packages for sale in the United States: BMW, Harley - Honorable City Council February 5, 2003 Regular Meeting Page 2 Davidson and Kawasaki. The BMW and the Harley - Davidson have the best trade in value, but are more expensive at the initial purchase than the Kawasaki. The Kawasaki has almost no trade -in or auction value. The BMW and Kawasaki are purchased out of the area through the State bidding system and only the Harley - Davidson can be purchased locally and in the City of Moorpark. After many years of not catering to California law enforcement agencies, Harley - Davidson attempted to reenter the law enforcement market in the mid 1980's with an incentive program intended to attract those agencies. As a result, many law enforcement agencies, including the City of Moorpark, began utilizing the Harley - Davidson motorcycle for their traffic enforcement use. Unfortunately though, the Harley - Davidson traffic enforcement motorcycle did not stand up well to the rigors of traffic enforcement within a suburban environment and maintenance problems plagued Harley - Davidson. A Harley - Davidson Dealership is now open in the City of Moorpark and its owners have made serious efforts to become a part of this community. One of those efforts in offering a "Harley - Davidson Police Package Motorcycle" to the Moorpark Police Department that would be enticing enough to encourage the police department to consider purchasing and then servicing a Harley - Davidson motorcycle for use within the City of Moorpark. Mr. Paul Pecoraro, General Manager of the Harley - Davidson Dealership in Moorpark has indicated that although the market for the police model in California has fallen off and is dominated by BMW and Kawasaki, Harley - Davidson is still very much interested in delivering a reliable Harley - Davidson police motorcycle for use in California at a competitive market price. There are some differences in the Harley - Davidson Program from the BMW program and those differences are what made the BMW more attractive over any other motorcycle when the current BMW was purchased: 1. BMW Buyback Program: BMW has a guaranteed "buy back" program of $10,416.44 toward the purchase of another BMW motorcycle within the three -year, 60,000 -mile warranty period. • Although Harley - Davidson does not have a guaranteed "buy- back" program their historical data shows that Honorable City Council February 5, 2003 Regular Meeting Page 3 the trade -in value for another Harley - Davidson police motorcycle would be approximately $11,000 in today's market. This of course is subject to what the market would be in three years from a purchase made now. Mr. Pecoraro indicates that Harley - Davidson's 100 years of history would prove out his statement. If the police department elected not to repurchase a Harley - Davidson at the end of the three -year period then the dealership could buy back the motorcycle at some price near the trade -in value of $11,000. He said there is a huge demand for used Harley - Davidson motorcycles, specifically the "Police Package ". 2. Manufacturer's Warrantee: BMW has a three -year, 60,000 - mile factory warrantee while Harley - Davidson has a one - year, unlimited miles warrantee. • Harley - Davidson offers the purchase of an Extended Service Plan at a cost of approximately $749 (this is the Harley - Davidson Dealership's discounted quote and could be purchased up to 90 days after the initial delivery of a motorcycle). This would be an option the City may want to consider. 3. Previous Maintenance Problems: Harley - Davidson has produced a police version motorcycle since 1908 and is used by law enforcement agencies worldwide. Mr. Pecoraro indicates that the Harley - Davidson Police Package is much improved over recent models. He indicates many police agencies, outside of California, and there is a growing number within California, use the Harley - Davidson motorcycle. • Within California some of those agencies are: the Sacramento Police Department, San Francisco Police Department, San Bernardino Police Department, Palm Springs Police Department, Riverside Police Department, Concord Police Department, Oakland Police Department and the Santa Barbara Sheriff's Department that currently use the Harley - Davidson. There are no police agencies within Ventura County that use the Harley - Davidson. Honorable City Council February 5, 2003 Regular Meeting Page 4 Service and Repair The Harley - Davidson motorcycles would be serviced locally at the Harley - Davidson Dealership in Moorpark. This location has agreed to give the City of Moorpark motorcycle priority when service or repairs are required. As a result, most of the service work would be completed in a short period of time, allowing the motor officers to return to work on the motorcycle after a minimum delay. There are no local Authorized BMW Dealers in Ventura County, but one is soon to be located in Thousand Oaks. The nearest authorized dealership to the City of Moorpark for warranty service is BMW Motorcycles Authorized, in North Hollywood. MOTORCYCLE COST COMPARISON There are several points to be considered when comparing the initial first time costs of the 2004 BMW Model R1150RT -P /CHP Version Motorcycle with the 2004 Harley - Davidson FLHTPI Electra Glide Police Motorcycle, including initial cost, frequency of maintenance required, cost of maintenance, trade -in value after three years, and availability of local service: Purchase Price (incl. /tax /fees) Emergency Lights /Installation Extended Service Warrantee Misc. Equip. Install communication pkg. Total *Routine Service (parts and labor) Total Estimated Cost Buy Back Price After 3yrs /60K mi. BMW $16,042.23 $2,282.65 $0 $666.25 $850 $19,841.13 $3,200 $23,041.13 10,416.44 Total Repurchase Price After 3yrs. $9,424.69 Harley - Davidson $14,995 $3,394.45 $749 N/A $850 $19,988.45 $3,422 $23,410.45 $11,000 $8,988.45 *Routine service is not covered under warranty for either the BMW, or Harley - Davidson. v. p,- 'I Honorable City Council February 5, 2003 Regular Meeting Page 5 LEASE OPTIONS (Not Recommended) BMW does not offer a commercial lease option. Harley - Davidson Finance offers two commercial lease options: • Without emergency equipment $238.01 a month for 36 months. Residual at end of lease of $9,000. ($555.27 due on delivery includes first month lease.) • With emergency equipment $340.77 a month for 36 months. Residual at end of lease of $9,000. ($665.38 due on delivery includes first month lease. The police department would not own emergency equipment at end of lease.) CONCLUSIONS When initial cost, trade -in /guaranteed buy -back program, efficiency of motorcycle, and safety are considered, the BMW and Harley - Davidson appear to be nearly equal. The Harley - Davidson, however, would be purchased and serviced within the City of Moorpark. Service of the motorcycle in Moorpark offers two advantages; less lost time for maintenance/ service due to reduced travel, which would result in more officer time on the motorcycle than in a car. If the Harley - Davidson Motorcycle performs efficiently, it would also be expected that other East County law enforcement agencies would evaluate purchasing Harley - Davidson Motorcycles and additional sales tax dollars could be generated for the City of Moorpark. It is recommended that your Council accept this report and approve the replacement purchase of one 2004 Harley - Davidson FLHTPI Electra Glide Police Motorcycle at a total initial cost of $19,988.45 to replace an aging Kawasaki motorcycle ( #9955 with approximately 30,000 miles). Both the Harley - Davidson and the BMW will be evaluated over the following three -years to determine the most cost effective and efficient motorcycle for the Moorpark Police Department for traffic enforcement use. Honorable City Council February 5, 2003 Regular Meeting Page 6 STAFF RECOHMNDATION 1. Approve the purchase of one 2004 Harley - Davidson FLHTPI Electra Glide Police Motorcycle at a cost of $19,988.45 from the Fiscal Year 2003/04 Budget Equipment Replacement Fund.