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Home My WebLink About5L 2017 Fleet Purchases Squads Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 12, 2016 AGENDA #: 5L PREPARED BY: KATY GEHLER, PUBLIC WORKS & NATURAL RESOURCES DIRECTOR MARK ELLIOTT, POLICE CHIEF PRESENTED BY: KATY GEHLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE PUR- CHASE OF TWO 2017 POLICE INTERCEPTOR UNTILITY VEHICLES DISCUSSION: Introduction The purpose of this agenda item is to seek City Council approval to purchase two 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. It has been our practice to authorize vehicle purchases early in the new budget year. However, pricing on the Ford Police Interceptor is currently set to expire on December 31, 2016. Current Circumstances Currently you can order the 2017 model for the 2016 pricing which has re- mained the same for the last three years. Ford typically has set the pricing each year to run from model year to model year ending in the early spring (Mar.- Apr.). This year, they have currently set the cut-off date at Dec. 31, 2016. With the end of year cut off, this may be an indication that pricing will be going up. If that happens, it invalidates the state contract and we will have to wait to order Fords until the state puts a new contract in place. This is likely to take a few months with ordering happening in the early spring and delivery in the summer. Ford could extend the pricing as well, but that is a risk we would take waiting for approval for the first meeting in January. To ensure we take advantage of the 2016 pricing, it is recommended that the purchase is approved so the squads can be ordered. Regardless of whether the squads are ordered in December or January, we will take delivery in 2017 and as such they will be considered a 2 2017 budget expenditure. For 2017 there are three patrol squads programmed to be replaced that require council approval (> $20,000). Unit’s #1211, a Ford Crown Victoria and #414 a Ford Interceptor SUV are rec- ommended to be replaced with the 2017 Ford Interceptor Utility Vehicle. The third squad, an unmarked Dodge Charger, is recommended to be replaced with another Dodge Charger and will be brought as a separate item in the new year. 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 pro- vides 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 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 replacement cycles. Squads can only be purchased through the State of Minnesota Cooperative Purchasing Venture (CPV). The 2017 Ford Utility Vehicle equipped for our set- up is $27,400.95 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 little to no loss in residual value. Police Squads (2) 2017 Budget Allotment: $83,133.33 Make, Model Vendor Base Vehicle Appurtenant Equipment Total Equip- ment Cost 2017 Ford Police Interceptor Utility Nelson Auto (State Bid) $27,400.95 $12,000.00 $39,400.95 TOTAL for 2 Squads $54,801.90 $24,000.00 $78,801.90 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 table above. This equipment is under the $20,000 threshold and will be purchased in accordance to the City’s purchasing policy. Conclusion The council is being asked to authorize the purchase of the base vehicles and disposal of the old equipment. ISSUES: The Ford Interceptor Utility vehicles have a short window at which they are available. The sooner we can order the vehicles the sooner in the production schedule they will be. Last year the squads were ordered Jan. 11 and received mid to late March. Once we receive the squad it takes another 2-4 weeks to build-out the squad 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. 3 FINANCIAL IMPACT: The council will be approving the 2017 budgets and tax levy as part of old busi- ness on this same agenda. This authorization for purchase of the two squads in this agenda item is contingent on this approval of the 2017 budget as pre- sented for the fleet replacement program as approved in the 2017 CIP. The 2017 Equipment Replacement Plan (CIP) programmed and the 2017 Re- volving Equipment Fund has set to budget $83,133.33 for the replacement of the two police squads including the lights and safety equipment. The replace- ment cost for the proposed fleet purchases are $78,801.90 which is within the proposed 2017 budgeted amount. ALTERNATIVES: 1. Approve a resolution as part of the consent agenda authorizing the pur- chase of the two proposed vehicles and equipment and disposal of the ex- isting equipment as detailed in this report. 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative No. 1 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-xxx A RESOLUTION AUTHORIZING THE PURCHASE OF TWO 2017 FORD POLICE INTERCEPTOR UTILITY 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 2017 Equipment Replacement Plan contemplates the replacement of two police squads with Ford Police Interceptor Untity Vehicles; and WHEREAS, The 2017 Equipment Plan programmed $83,133.33 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. Athorization is contingent on approval of the 2017 budget and tax levy on December 12, 2017. 3. Staff is authorized to dispose of Unit #1211 a Ford Crown Victoria and Unit #414 a Ford Police Interceptor Utility. 4. Staff is authorized to purchase two 2017 Ford Police Utility Interceptors from Nelson Auto Center through the State Cooperative Venture for an amount of $54,801.90 by 12/31/2016. 5. Funds will be drawn from the Revolving Equipment Fund (410-42100.00-55550.00). PASSED AND ADOPTED THIS 12th DAY OF DECEMBER 2016. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager