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Home My WebLink About2010-07-07 PACKET 04.P.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 7/7/10 -1 PREPARED BY: Finance Robin Roland ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST: 2010 Vehicle Replacement plan STAFF RECOMMENDATION: Approve vehicle re-distribution plan resulting in purchase of 2010 Toyota Prius and 2010 Ford Escape Hybrid SUV. BUDGET IMPLICATION: BUDGETED AMOUNT ADVISORY COMMISSION ACTION: DATE ❑ PLANNING ❑ PUBLIC SAFETY F PUBLIC WORKS F PARKS AND RECREATION ❑ HUMAN SERVICES/RIGHTS F ECONOMIC DEV. AUTHORITY 0 SUPPORTING DOCUMENTS: Z MEMO/LETTER: Burshten/Roland 7/1/10 F RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: F LEGAL RECOMMENDATION: F OTHER: REVIEWED El El El El ACTUAL AMOUNT APPROVED DENIED F ❑ ❑ ❑ 11 ❑ El ❑ ❑ ❑ ❑ ❑ F F ADMINISTRATORS COMMENTS: ") N i City Administrator Date COUNCIL ACTION TAKEN: APPROVED F DENIED F OTHER I CADocurnents and Settings\rroland\My Documents\City Council Action Form.doc; To: Honorable Mayor and City Council members Ryan Schroeder, City Administrator From: Les Burshten, Public Works Director Robin Roland, Finance Director Date: July 1, 2010 Subject: 2010 Vehicle replacement plan Introduction During the 2010 -2011 budget discussions, Council requested that staff review current needs and evaluate how `right sizing' of the City fleet might be accomplished. In addition, staff looked at the costs and benefits of incorporating more "environmentally friendly' vehicles into the fleet. The analysis resulted in the following proposal for vehicle replacements in 2010. Discussion The vehicles approved for purchase in 2010 and the vehicles they replace are: Division Description Budget cost Replacing actual cost Recreation 1/2 Ton Pick -up $ 26,500 unit 5005 $ - Building Prius - unit 5002 24,000 Parks 4WD Pick -up Parks 11' Rotary mower Streets Single axel dump truck w /plow Streets Single axel dump truck w /plow Water 4WD Pick -up Water 4WD Pick -up w /service body 29,000 unit 1409 28,000 50,000 unit 8502 48,500 160,000 unit 4001 169,625 160,000 unit 4002 169,625 29,000 unit 1503 28,000 45,000 unit 1507 45,000 $ 499,500 $ 512,750 Vehicle swaps between various divisions result in the one change indicated on the schedule: Instead of purchasing a replacement pick -up truck, a Building inspections truck will be swapped to Recreation and Building inspections will receive a 2010 Toyota Prius. The hybrid vehicle has been tested by the department staff and found satisfactory. (Authorization to purchase the Prius is included with this Agenda item). Not only does the Prius cost less than the budgeted truck, its environmentally friendly 50 mpg will save the City fuel and maintenance costs in its 10 year life cycle. The vehicle swaps will also lead to disposal of the following equipment: REENOM As a result: 2010 Vehicle Replacement Budget $ 499,500 Actual cost listed above (512,750) Budget shortfall (13,250) Proceeds from sale of equipment 36,900 Balance 23,650 The redistribution of these vehicles results in the opportunity to downside the vehicle driven by the Public Works Director. Staff proposes to use the balance indicated above to purchase a 2010 Ford Escape Hybrid 4WD SUV at a cost of $32,500. Any cost difference ($32,500 less $23,650) would be taken from the Equipment Replacement fund. A full description of the operational details (purchases, sales, swaps etc) is available if Council desires to review it. Recommendation Approve the revisions to the 2010 Equipment Replacement Fund budgeted acquisitions to include the purchase of a Ford Escape Hybrid SUV at an estimated cost of $32,500 to replace the Public Works Director's vehicle. Funding to support this purchase will come from cost savings on approved budgeted vehicles and proceeds from sales of retired vehicles/equipment through the Equipment Replacement Fund. Anticipated Division Description unit# sale proceeds Golf Pick -up w /plow 5007 $ 1,200 Recreation Pick -up w /plow 5005 1,800 Fleet Pick -up 1202 1,200 Streets Pick -up w /plow 1003 1,500 Streets Dump truck 4001 15,000 Streets Dump truck 4002 15,000 Storm Water Pick -up w /service body 1801 1,200 REENOM As a result: 2010 Vehicle Replacement Budget $ 499,500 Actual cost listed above (512,750) Budget shortfall (13,250) Proceeds from sale of equipment 36,900 Balance 23,650 The redistribution of these vehicles results in the opportunity to downside the vehicle driven by the Public Works Director. Staff proposes to use the balance indicated above to purchase a 2010 Ford Escape Hybrid 4WD SUV at a cost of $32,500. Any cost difference ($32,500 less $23,650) would be taken from the Equipment Replacement fund. A full description of the operational details (purchases, sales, swaps etc) is available if Council desires to review it. Recommendation Approve the revisions to the 2010 Equipment Replacement Fund budgeted acquisitions to include the purchase of a Ford Escape Hybrid SUV at an estimated cost of $32,500 to replace the Public Works Director's vehicle. Funding to support this purchase will come from cost savings on approved budgeted vehicles and proceeds from sales of retired vehicles/equipment through the Equipment Replacement Fund. f i • I t • Toe Les W. Burshten, Director of Public Works Harold J. Taylor, Jr., Public Works Supervisor From: Mark 006n, Shop Foreman Date: July 2, 2010 Subject: Vehicle Purchase Request Within the authorized 2010 Equipment/Vehicle Replacement Schedule is the replacement of unit 51- 5005 -97, a 1997 Chevrolet pickup with plow that is used by the Park and Recreation /Ice Arena Divisions in the amount of $26,500.00. As you and I have discussed, we are requesting to purchase a 2010 Toyota Prius Hybrid vehicle to be used in the Building Inspection Division and transfer their present vehicle, Unit 13- 5002 -04, a 2004 Chevrolet extended cab pickup, to the Parks and Recreation Division. The City is eligible to purchase this vehicle through the 2010 Minnesota Material Management Division and Burnsville Toyota & Scion, Burnsville, MN. The following quotation is attached: Burnsville Toyota & Scion, Burnsville, MN (1) One new 2010 Toyota Prius II vehicle: $22,049.00 As you and I have discussed and agreed upon, the recommendation is to ask council for approval to purchase (1) one new 2010 Toyota Prius II from Burnsville Toyota & Scion for the purchase price of $22,049.00 which does not include sales tax and license. If all is acceptable, please place this item on the July 7, 2010 Council Agenda for approval. Page 1 of 2 Mark Olson From: Bob McCoy [bmccoy @burnsviiletoyota.com] Sent: Friday, June 11, 2010 3:58 PM To: Mark Olson Subject: 2010 Toyota Prius State Contract proposal price quote Hi Mark, Thank you for your interest in purchasing a 2010 Toyota Prius II foryour organization) I would like to remind you that the vehicle will come equipped with two (2) Keyless Entry Transmitter's also. These are the transmitter's which are required to operate the vehicle. Here is a description of the Toyota Prius as proposed: MECHANICAL & PERFORMANCE: Hybrid Synergy Drive System, AT -PZEV 1.81, DOHC 16V VVT -i 4- Cylinder Engine 15" Aly Whls w /Cvrs & P195/65R15 Tires Electric Power Steering (EPS) 4 -Whl Disc Brakes / Front Ind Suspension SAFETY: Star Safety System includes: Enhanced Vehicle Stability Ctrl w /TRAC Anti -Lock Brakes w/ EBD & Brake Assist Dr & Fr Pass Advanced Airbag System Dr & Fr Pass Seat Mounted Side Airbags Side Curtain Airbags & Dr Knee Airbag Dr & Fr Passenger Active Headrests 3 -Point Seatbelts w /ALR/ELR Pass Belts LATCH(Lwr Anchor & Tethers for Children) for Outboard Rear Seating Positions Only Eng Immobilizer, Tire Press Monitor Sys EXTERIOR: Rr Deck Spoiler, HSD Blue Accent Badges Projector -Beam Halogen Headlamps w /Auto- Off Feature and HSD Blue Accents Clr -Kyd Foldable Pwr Heated Outside Mrrs Front Variable & Rear Intermittent Wiper COMFORT & CONVENIENCE: EV/Eco/Pwr Modes & Touch Tracer Display Multi- Information Display w/ Trip Info AM/FM/MP3 CD Player w/6 Spkrs, Aux Audio Jack, Sat Radio Cpblty (Req Kit/Subscr) Dr Door Smart Key System & Fabric Seats 6 -Way Adj Dr Seat, 4 -Way Adj Pass Seat Rmte Keyless Entry & Push Button Start 6/14/2010 Page 2 of 2 Tilt/Telescopic Steering Whl w /Controls Cruise Control, Instant MPG Meter Center Console w /Sliding Armrest/Storage Compartment & Dual Front Cup Holders 60/40 Split Fold -Down Rear Bench Seat w/ Fold -Dn Ctr Armrest & Adj Hdrests Auto Climate Control System Pwr Locks & Pwr Windows w /Auto Up/Down Overhead Console w/Maplights, Dua1- Comparhnt Glove Box & (2)12V Pwr Outlets Tonneau Cover & Dual Seatback Pockets ADDITIONAL FACTORY ACCESSORIES: 50 State Emissions Carpet Floor Mats & Cargo Mat I appreciate the opportunity to provide you with the following price proposal as is stated per the terms of Minnesota State Contract 442466. (1) 2010 Toyota Prius II — Model # 1223 in the Classic Silver color Contract Price: $22,903.00 (1) Accessory Carpet Floor /Cargo Mat set 126.00 Contract Price: $ Minnesota State Transit Improvement Vehicle Excise Tax Effective: July 1, 2008: 20.00 Total Proposal Sale Price: $23,049.00 Current Manufacturer's Incentive Period Cash Purchase Bonus (expires June 30th, 2010) < - $1.000.00> Thanks again, I'll look forward to hearing from you soon! Sincerely, Bob McCoy Burnsville Toyota & Scion 14730 Buck Hill Road Burnsville, MN 55306 Direct: 952 - 892 -9127 Final Proposal Sale Price: $22,049.00 This email has been scanned by the MessageLabs Email Security System. For more information please visit http : / /www.messagelabs.com/email 6/14/2010