#15 - Building Dept Vehicle Purchase

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STAFF REPORT DATE: February 7, 2023 CONSENT TO: City Council FROM: John Taylor, Building Official AGENDA ITEM: Purchase of Two Inspection Vehicles for the Building Department REVIEWED BY: Kristina Handt, City Administrator BACKGROUND: The Building Department is requesting Council approval or the purchase of two vehicles from White Bear Mitsubishi as part of the department’s vehicle replacement program. The 2023-2027 Capital Improvement Plan included the replacement of B-002 2015 Jeep Compass and B-003 2017 Chevy Equinox. ISSUE BEFORE COUNCIL: Should the City Council approve the purchase of two vehicles, as recommended by staff, and as outlined in the 2023 Capital improvement Plan? PROPOSAL DETAILS/ANALYSIS: The City of Lake Elmo Building Department uses city owned vehicles to provide inspection services to its residents and contractors. The Building Department uses these vehicles to help accomplish these daily tasks. Currently the Building department replaces its vehicles every 5 years. The 2023-2027 Capital Improvement Plan included the replacement of B-002 2015 Jeep Compass and B-003 2017 Chevy Equinox. The 2015 Jeep was kept because the Code Enforcement Official needed a vehicle so replacement was moved to 2023. The 2015 Jeep has since been properly disposed of at auction. The 2017 Equinox would also be sold at auction. The Building Department wishes to replace the Jeep and 2017 Equinox with two 2023 Mitsubishi Outlander Sport ES AWD- SUV. The Building Official sent out requests to five dealers requesting information on pricing and received two quotes. The White Bear bid was $25,780.85 per vehicle and Stillwater motors submitted a bid of $26,725 per vehicle before other fees. The Building Official also contacted Advanced Graphix for costs for the application of Lake Elmo Logo. Currently White Bear has put two existing 2022 models on their lot with new state contract pricing. The possibility that both these vehicles might not be available at the time of Council approval due to ongoing supply issues is still very high. The Building Department is asking that the motion allow the Building Official to be allowed to purchase an available vehicle, with the City Administrator’s approval, if these two vehicles are not available. FISCAL IMPACT: Total state contract cost for each 2023 Model vehicle will be $25,780.85. The City of Lake Elmo must pay registration fees and tax of approximately $1,800.00 per vehicle; $205 for Graphic fees; and about $202 for floorboard protection for a total of $27,987.85 per vehicle. $30,000 per vehicle is budgeted in the 2023-2023 Capital Improvement Plan for Inspection Vehicles.