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Consideration of request for approval of a level three fund transfer to recognize insurance proceeds to purchase 2 replacement police squads
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Submitted by:
John Ruggini
Department:
Finance Department
A. Issue
Two Police Department squads were totaled in December. Both were insured and a fund transfer is required to recognize the insurance proceeds and increase the expenditure budget for their replacement.
B. Background/Options
Police squads P-264 and P-297 were both totaled when P-297 was stolen, chased and ultimately disabled by P-264. Both squads were covered by insurance. In this case, a $25,000 deductible was spread across these two vehicles and a third that was damaged. P-297 was insured for replacement plus added equipment which can't be re-used. P-264 was older than 5 years (2021 model year) and thus insured for actual cash value which was determined to be $17,116 plus added equipment that cannot be reused.
A large amount of snow fell onto Squad 261 from the I-45 overpass damaging the windshield and front pillars. The repair costs exceeded the replacement value so this vehicle was declared a total loss. The City received $$37,990 from insurance.
Lastly Squad 272 was at a traffic stop at far right with emergency lights and was rear ended by another vehicle. The squad was totaled and insurance proceeds will reimburse the City $14,927 as this was an older vehicle insured for cash value.
The Fleet Superintendent was able to work with Ewald's Ford to receive their 2025 pricing. A fund transfer is needed to increase the budget to purchase these 4 vehicles and will be partially offset by insurance proceeds. The remainder will need to be from the contingency fund. Given the number of damaged police vehicles, it is necessary, and more cost effective, to replace both vehicles now rather than wait for the 2027 Budget.
C. Strategic Plan (Area of Focus)
Public Safety
D. Fiscal Impact
Two new squads will costs $53,510 each for a total...
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