HomeMy WebLinkAbout5.C.1. Purchase of Vehicles for Building Inspections
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CITY OF SHAKOPEE
MEMORANDUM
TO: Mayor & City Council co~srr~T
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Mark McNeill, City Administrator
Bruce Loney, Public Works Director
FROM: Michael Hullander, Public Works Superintendent
DATE: May 4, 2010
SUBJECT: Purchase of Vehicles for Building Inspections.
INTRODUCTION:
Council is requested to approve the purchase of two vehicles for the Building Inspections
Department as provided in the 2009 (delayed) and 2010 Capital Equipment Budget. The
respective budgets allocated $22,000.00 in each year for these purchases. Staff is
requesting to purchase both these vehicles at this time.
BACKGROUND:
The 2009 and 2010 Capital Equipment Budgets for the Building Inspections Department
identified a need to replace unit # 425 a 1999 Ford Ranger and unit # 421 a 2000 Ford
Ranger. Staff is recommending replacing these vehicles with 2010 Ford Fusion Sedans
using State Bid Pricing from Elk River Ford for the purchase price of $18,221.54 each,
with a combined price of $36,443.07. The funding to be expended from the Capital
Equipment Fund. State Contract number 440054.
Staff is requesting to retain these vehicles and evaluate the six compact pick-ups used by
the Facility and Park Maintenance Divisions. These are low mileage vehicles, less than
2000 miles annually, and the small internal service fund rental rate are a benefit and
provide cost savings to the Divisions. After evaluation the two vehicles in the worst
condition will be sold at auction.
The Building Inspections Department utilizes four 4x4 compact pick-up trucks which get
between 9 and 12 miles per gallon of gasoline. Staff has researched the State Contract
for vehicles based on vehicle cost, combined average miles per gallon and how the
vehicle is used; considering driver size and limitations for comfort of having to
continually get in and out of the vehicle to perform their duties.
Per Council direction to purchase vehicles with higher miles per gallon ratings and
conversations with Department Head Michael Leek, staff is recommending to replace the
1999 and 2000 Ford 4x4 Rangers with 2010 Ford Fusion front wheel drive sedans with
an estimated combined rating of 25 miles per gallon. These vehicles are estimated to
save the department in fuel costs, comparing a 2010 Ford 4x4 Ranger with a 2010 Ford
Fusion, $6,100.00 per vehicle over the next ten years based on $4.00 per gallon of
gasoline.
State Bid Contract did not include the Ford Fusion Hybrid, based on Ford not being able
to guarantee the availability of enough production, staff asked for and received a price
quote to compare the Fusion side by side with the Fusion Hybrid. The Fusion Hybrid
costs $8,535.69 more than the Fusion. Miles per gallon comparisons at $4.00 per gallon
gasoline shows the Hybrid saves $4,800.00 over ten years at 8,000 miles per year. With a
higher cost of $3,700.00 more over ten years, mechanic training, unknown maintenance
costs and unknown re-sale value, the Hybrid cannot be recommended at this time.
Staff would like to make Council aware that although the Ford Focus can no longer be
ordered this contract cycle, based on the criteria above, minimal fuel cost savings over
ten years of $490.00 and vehicle cost difference of $1,500.00, staff believes the Fusion
provides the best value to the Department and City. If Council does not concur with
staff s determination, the vehicles could be retained until 2011, or when the new
contracts are available, and the Ford Focus could be purchased.
The State Contract order dead-line for the Ford Fusion is May 14,2010.
ALTERNATIVES:
1. Authorize the purchase of two 2010 Ford Fusion Sedans from Elk River Ford for
the purchase price of $36,443.07.
2. Deny the request.
RECOMMENDATION:
Staff recommends alternative number one.
ACTION REOUESTED:
Motion to direct staffto purchase two 2010 Ford Fusion Sedans from Elk River Ford for
the purchase price of $36,443.07 in accordance with State of Minnesota Contract
#440054 with the funding to be expended from the Capital Equipment Fund.
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Michael Hu11ander
Public Works Superintendent