04-23-2025 Council Packet - Laserfiche WebLink

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STAFF REPORT TO:Mayor Fischer and Members of the City Council FROM:Ben Harrington, Community Development Director Heidi Heller, City Clerk/HR Manager DATE:April 23, 2025 RE:Purchase of City Staff/Building Inspection Vehicle ACTION TO BE CONSIDERED: Approve the unbudgeted purchase of a city staff vehicle not to exceed $30,000 and approving a transfer of up to $30,0000 from Fund General Operating Fund 101 to General Capital Expenditures Fund 400. BACKGROUND: City staff are requesting approval to purchase a vehicle for use by Building Inspections staff. For over 20 years, the city’s Building Official has used their personal vehicle for inspections and other official duties, receiving mileage reimbursement. This was the preference of the outgoing Building Official, but going forward, staff recommend transitioning to a city-owned and marked vehicle for this function. The new Building Official, slated to start with the city on May 5, has also expressed a preference for using a city vehicle. Staff believe this shift is not only operationally beneficial but aligns with broader goals for fleet consistency, accountability, and visibility during field work. While the City typically purchases vehicles through the Minnesota State Contract Program, a vehicle obtained through that program would cost more than $30,000 and would take a minimum of three months, possibly up to a year, for delivery. Considering the long lead time and higher cost, staff intends to pursue the purchase of a gently used, low-mileage vehicle from a local dealership. This approach is consistent with the City’s 2021 purchase of its current plug-in hybrid code enforcement/administration vehicle. This purchase is necessary regardless of whether the city expands its building inspection services through intergovernmental contracting. However, should those conversations be finalized with a proposed partner city, staff will seek to incorporate a share of vehicle costs into that agreement. SOURCE OF FUNDS City staff are requesting approval of a transfer from the General Operating Fund 101 Fund Balance, not to exceed $30,000, to the General Capital Infrastructure Fund 400. After the transfer, the Unassigned Fund Balance for the General Fund is expected to continue remaining between 42.5% to 65% of next years budgeted expenditures, as per city policy. The 2024 General Fund balance is projected between 60% to 62% of the 2025 budgeted expenditures. STAFF RECOMMENDATION Approve the unbudgeted purchase of a city staff vehicle not to exceed $30,000 and approving a transfer of up to $30,0000 from Fund 101 to Fund 400.