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HomeMy WebLinkAbout5I Fleet Purchases SQUADS Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JANUARY 11, 2016 AGENDA #: 5I PREPARED BY: KATY GEHLER, PUBLIC WORKS & NATURAL RESOURCES DIRECTOR MARK ELLIOTT, POLICE CHIEF PRESENTED BY: KATY GEHLER & MARK ELLIOT AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING 2016 POLICE FLEET PURCHASES DISCUSSION: Introduction The purpose of this agenda item is to seek City Council approval to purchase three police vehicles. History In 1998 the Equipment Replacement Plan was created as a budgeting tool to assist in financial planning for major expenditures and to help moderate the an- nual fleet replacement budget. The goal is to replace the equipment in a timely and cost-effective manner. Annually the plan is reviewed and updated based on the current condition of the City’s fleet and adopted by the City Council as part of the Capital Improvement Program. The purchases for the coming year are incorporated into the annual budget requests and adopted by the Council in December. As per state stat- ute, all purchases over $20,000 are brought back to the Council for final pur- chase authorization. Current Circumstances For 2016 there are two patrol squads and the police motorcycle that are pro- gramed to be replaced and require council approval (> $20,000). Unit’s #111 and #309, both Ford Crown Victorias (which are no longer in pro- duction), are recommended to be replaced with the 2016 Ford Interceptor Utility Vehicle. Since the retirement of the Ford Crown Victoria the City has been standardizing on the Ford Utility Vehicle for use as patrol squads. This standardization provides for a couple of efficiencies. First, the officers can easily transition from squad to squad where equipment and controls are found in the same place. This is especially important during emergency operations not only with the placement of the controls but the handling of the vehicle itself. Second, the lights and other safety equipment (which will have to be purchased for the first time for these two utility vehicles) generally have a life span two to three times that of the squad itself. With standardization the old equipment generally fits the new squad so it allows it to be reused for two to three re- 2 placement cycles which reduces city costs. This year’s purchases include the cages, visibars, push bars, computer platforms and the like. Squads can only be purchased through the State of Minnesota Cooperative Purchasing Venture (CPV). The 2016 Ford Utility Vehicle equipped for our set- up is $27,373.95 per squad. Note that the old squads will be retained for the summer months to be used by our 25+ seasonal Public Works staff and then sold at auction in the fall with lit- tle to no loss in residual value. Police Squads (2) 2016 Budget Allotment: $67,216 Make, Model Vendor Base Vehicle Appurtenant Equipment Total Equip- ment Cost 2016 Ford Police Interceptor Utility Nelson Auto (State Bid) $27,373.95 $7,000.00 $34,373.95 TOTAL for 2 Squads $54,747.90 $14,000.00 $68,747.90 The 2009 Harley Davison Police Motorcycle is recommended to be replaced with a mid to small size sedan. The sedan will better serve the needs of the police department’s service delivery than the motorcycle. The use of the mo- torcycle is weather dependent in the Minnesota climate whereas the sedan can be used year round. The vehicle will also be much more useful as it can be used in administrative, investigative and patrol functions. Quotes were obtained through the CPV for small and mid-sized fleet sedans. The Chevrolet Malibu was the lowest priced option to serve the Department’s needs at a price of $19,550. This is substantially less than the list price as are all vehicles on the state bid program. An estimated resale value of the motor- cycle of $8,000 has been figured in to the budget and will be sold separately closer to summer to maximize proceeds. Police Motorcycle 2016 Budget Allotment: $30,900 Make, Model Vendor Base Vehicle Appurtenant Equipment Total Equip- ment Cost 2016 Ford Fusion Nelson Auto (State Bid) $20,266.88 $2,000.00 $22,266.88 2016 Ford Fusion Wolf Motors $20,547.00 $2,000.00 $22,547.00 2016 Chevrolet Malibu Ranger Chevrolet (State Bid) $19,543.49 $2,000.00 $21,543.49 Separate from the base vehicles, lights and other safety equipment will be pur- chased and installed in-house to outfit the vehicles for police use and emergen- cy response. The estimated cost of the materials is shown as Appurtenant Equipment in the tables above. This equipment is under the $20,000 threshold and will be purchased in accordance to the purchasing policy. Conclusion The council is being asked to authorize the purchase of the base vehicles and disposal of the old equipment. 3 ISSUES: The Ford Interceptor Utility vehicles are currently estimated to take 12-14 weeks from the date of order to delivery to the City. This window can lengthen as other departments place their orders therefore the sooner we can place the order the sooner in the production schedule they will be. Once we receive the squad it takes another 2-4 weeks to build-out the squads for service. Ideally the new squads would be available for use mid to late May so the old squads are available for the summer seasonal employees. The spring is the best time for motorcycle sales in Minnesota so immediate ac- tion on the Malibu order will allow staff to gather quotes from area dealers prior to the riding season. FINANCIAL IMPACT: The Equipment Replacement Plan programmed and the Revolving Equipment Fund Budgeted $98,116 for the replacement of the police vehicles including the lights and safety equipment. The replacement cost for the proposed fleet pur- chases are $90,291.32. ALTERNATIVES: 1. Approve a resolution authorizing the purchase of the proposed vehicles and equipment and disposal of the existing equipment as detailed in this report. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason and provide staff with direction. RECOMMENDED MOTION: Alternative No. 1 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-xxx A RESOLUTION AUTHORIZING THE PURCHASE OF THE 2016 POLICE VEHICLES Motion By: Second By: WHEREAS, Each year the City Council adopts an Equipment Replacement Plan as part of the Capital Improvement Program (CIP); and WHEREAS, The 2016 Equipment Replacement Plan contemplates the replacement of two police squads and the police motorcycle; and WHEREAS, The 2016 Equipment Plan programmed $98,116 for the replacement of these vehicles and appurtenant equipment; and WHEREAS, Quotes were received through the Minnesota Cooperative Purchasing Venture and are incorporated in the agenda report. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Staff is authorized to dispose of Units #111 and 309 two Crown Victorias and the 2009 Harley Davidson Motorcycle. 3. Staff is authorized to purchase two 2016 Ford Police Utility Interceptors from Nelson Auto Center through the State Cooperative Venture for an amount of $54,747.90. 4. Staff if authorized to purchase a 2016 Chevrolet Malibu from Ranger Chevrolet for an amount of $19,543.49. 5. Funds will be drawn from the Revolving Equipment Fund (410-42100.00-55550.00). PASSED AND ADOPTED THIS 11th DAY OF JANUARY 2016. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager