HomeMy WebLinkAboutItem 6 - CC 3.17#6
MAYOR & COUNCIL COMMUNICATION
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DATE: March 17, 2015 CONSENT ITEM #6 MOTION
AGENDA ITEM: Approval of Vehicle Purchase, Replacement of Tahoe Duty Vehicle SUBMITTED BY: Greg Malmquist, Fire Chief
THROUGH: Greg Malmquist, Fire Chief REVIEWED BY: Finance Director and Finance Committee
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item .............................................................. City Administrator
- Report/Presentation………………………………………… Fire Chief
- Questions from Council to Staff ............................................. Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion ....................................................................... Mayor & City Council
- Action on Motion .................................................................... Mayor Facilitates POLICY RECOMMENDER: Fire Department
FISCAL IMPACT: Up to $38,585.34 (To be offset by funds recovered through the sale of the existing vehicle).
This vehicle was proposed as part of the 2015 budget in the Capital Improvement Plan and if approved would be included in the 2015 bonding. As a general fund expenditure, the bond
payments would be made with levy funds.
Pricing for the vehicle was obtained through Minnesota Materials Management Division (State Contract). Vehicle cost, 2015 Chevrolet Tahoe - $31,594.10, Lighting/Siren, Radio conversion, Extendo Bed transfer - $6,836.24 and Graphics removal and installation - $155.00. Total cost = $38,585.34. Potential offset from the sale of the current vehicle = $19,100.00
SUMMARY AND ACTION REQUESTED: The Fire Department has been working to move toward a scheduled replacement of our fleet to reduce maintenance costs and ensure dependable, reliable emergency response vehicles. To this end, it is being respectfully requested that the City Council consider approval of this purchase to allow for us to stay on a vehicle replacement
City Council Meeting [Consent Agenda Item#6)
March 17, 2015
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schedule that would allow for the cycling a vehicles to maximize their trade in value. The
current vehicle, a 2008 Chevrolet Tahoe (CV1), has approx. 80,000 miles, is showing signs of wear and the lighting is beyond the 5 year warranty. It is believed that the vehicle is at the point where the resale value is significant while allowing us to avoid the increased maintenance costs that have begun to transpire. This vehicle has been fully depreciated and has a net book value of
zero.
The potential purchase of this replacement vehicle was presented to the Finance Committee in 2014 with the proposal of the 2015 Budget. At that time, it was anticipated that the cost would be $52,000. It should be noted that when preparing the 2015 budget, the state contract pricing
was not available so retail pricing was presented.
The Minnesota state contract pricing is significantly less, however this pricing is only available through March 31st. Based on the historical purchase of vehicles similar to this, we were uncertain if we would offer
the current vehicle for resale or if the City would decide to keep it and possibly utilize it within another department. Therefore we did not factor in any offset of resale dollars. This proposed purchase was presented to the Finance Committee on March 11th and they
approved and recommended moving forward in process with the presentation to the City Council
for final approval to purchase. As part of its Consent Agenda, no formal motion is required. If removed from the Consent Agenda, the recommended motion is as follows:
“Move to approve the purchase of a replacement Fire Department Command Vehicle in the
amount not to exceed $39,000.” LEGISLATIVE HISTORY: NA
BACKGROUND INFORMATION (SWOT): Strengths Provide a dependable, more reliable vehicle to serve the taxpayers and hold down maintenance costs.
Weaknesses Current vehicle is showing signs of age and use. All the emergency lighting is out of warranty and should we decide to retain the current vehicle, upgrades/expense will be necessary.
Opportunities The purchase of this vehicle will help to ensure a timely response
to emergencies. The continued cycling of vehicles will ensure lower maintenance costs and stronger trade in/resale values. Threats Potential “out of service” periods due to breakdowns.
City Council Meeting [Consent Agenda Item#6)
March 17, 2015
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RECOMMENDATION: Based on the aforementioned, the Fire Department recommends
upgrading the Tahoe duty vehicle as outlined above. Motion to approve the following: “Move to approve the purchase of a replacement Fire Department Command Vehicle in the amount not to exceed $39,000.” ATTACHMENTS: 1. Quote from Ranger GM on MN State Contract ($31,594.10) 2. Quote from Emergency Automotive Technologies Inc. ($6,836.24)
3. Quote from Advanced Graphics ($155.00)