HomeMy WebLinkAbout9D - Buyout Lease Pickup
MEETING DATE:
AGENDA #
PREPARED BY:
REVIEWED BY:
SUBJECT:
DISCUSSION:
STAFF AGENDA REPORT
JUNE 7, 1999 ~ (;, Z.
9D ~
AL FRIEDGES, PARKS SUPERVISOR ~
PAUL HOKENESS, DIRECTOR OF PARKS & R REATION
CONSIDER APPROVAL OF RESOLUTION 99- APPROVING
BUY OUT OF THE LEASE,..OF ONE 1996 CHEVR LET 1/2 TON
PICKUP ..
Historv
The purpose of this Agenda item is to buyout the lease of one 1996
Chevrolet, 1/2 Ton pickup.
At the May 19, 1997, City Council Meeting, the Council adopted an
Equipment Replacement Fund and Matrix. The purpose of the matrix
is to identify and budget for additional or replacement vehicles and
equipment. All vehicles and equipment identified in the matrix are
subject to Council approval prior to being purchased.
-
Current Circumstances
This vehicle was leased through G.M.A.C. since 1996 rather than
purchased. Since that time, the Equipment Replacement Fund and
Matrix has been established. The lease agreement on the above
mentioned 1996 Chevrolet pickup will expire in July, 1999. Funding
for the lease payments have been made from the operating budget.
This vehicle is used primarily by the Parks Supervisor. This vehicle is
a 1/2 Ton, two wheel drive pickup and is not utilized for pulling
trailers, equipment, or plowing snow.
Issues
There are 14,500 miles on this vehicle.
Conclusion
There is $22,000.00 (tax not included) for the purchase of a 1999 1/2
Ton pickup in the Parks and Recreation Department Equipment
Matrix which is identified in the Capital Improvement Program.
The 1996 Chevrolet pickup that we are currently leasing can be
purchased for $13,690.85 which includes tax and license transfer.
Considering the low mileage and the cost of purchasing a new
vehicle vs. buying out the lease option, Staff recommends the
purchase of our currently leased 1996 Chevrolet. This would result in
a savings of approximately $9,000.00.
162A\\tliegMreek Ave. S.E.. Prior Lake. Minnesota155372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
COST RECOVERY
SUMMARY:
ExistinQ EQuipment Replacement
Enuinment
1. Eauioment Descriotion: 1996 Chevrolet 1500
2. Eauioment Condition: Good
3. Eauioment Hrs./Miles 14,500
4. Primary Use: Transport Parks
SUDervisor
SecondarY Use: Same
5. Useful Life/Deoreciation Term: 8 Years
6. Eauioment Aae: 3 Years
7. Acauisition Date: 1999
8. Acquisition Cost: $12,817.70 (Tax not
incl.)'
9. Matrix Budaet Amount: $22,000.00
10. Deoreciation: N/A
11. PresenUTrade-in Value: N/A
12. Projected Equipment Retention 8 Years (if needed)
Schedule:
13. Net Cost after Trade-in N/A
14. Net Cost Plus Tax, License, Transfer $13,690.85
AGCHEV.DOC
2
ALTERNATIVES: The alternatives are as follows:
1. Approve Resolution 99-XX authorizing the "buyout" option of
the 1996 Chevrolet pickup (Unit #40) for $13,690.85 (tax and
license transfer included).
2. Direct Staff to pursue the purchase of a current 1999 model
pickup as the matrix identifies.
3. Direct staff to pursue leasing another pick-up in same manner
as before.
4. Table this resolution for a specific reason.
5. Deny this resolution for a specific reason.
RECOMMENDATION: St
REVIEWED BY:
AGCHEV.DOC
3
MOTION BY:
WHEREAS,
WHEREAS,
~--o
RESOLUTION 99-4 0 L
RESOLUTION APPROVING THE PURCHASE OF
ONE 1996 CHEVROLET 1/2 TON P1CKUP
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SECOND BY:
the 1999 Equipment Replacement Fund & Matrix identifies the purchase of
one 1999 1/2 Ton pickup;
the 1996 vehicle is currently being used by the Parks Department and will be
purchased as a "buyout" option through G.M.A.C. Lease Program with
negotiated pricing as follows:
MAKE/MODEL 1996 Chevrolet Pickun. 1500
Unit Cost 12,817.70
License Transfer 40.00
Sales Tax 833.15
TOTAL 13,690.85
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
Minnesota, to approve the purchase of one 1996 Chevrolet 1/2 ton pickup as a buy-out option in the
amount of$13,690.85, with funds being drawn from the Equiprnent Replacement Fund.
Passed and adopted this
{ Seal}
day of
.1999.
YES
NO
Mader J. Mader
Kedrowski X Kedrowski
Schenck X Schenck
Petersen J\ Petersen
Wuellner '/. Wuellner
City Manager
City of Prior Lake
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER