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8.1 Purchase Fire Inspector Vehicles CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 10/10/2011 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: 8 NO: BY: Fire Department FINAL APPROVAL: ITEM NO: 1 Larry Mullikin, Fire Chief Page 1 BY:BY: Roger Williams, Fire Marshal ITEM: Authorize the purchase of two used vehicles for the Fire Department. BACKGROUND: The Fire Department (SFD) is requesting to use the $40,000 originally allocated for the purchase of a new vehicle as funding to obtain two used vehicles from the Kansas Highway Patrol (KHP). This is another innovative effort of replacing existing fleet and taking the maximum advantage of the funds budgeted in the Capital Improvement Program (C.I.P.). Even though buying used vehicles has its concerns; the department has considerable experience with this type of vehicle acquisition. In 2009, this concept was executed. Two older travel type vans were replaced with good condition used ones. In order for the used vehicles to be considered as an option for purchase, it had to meet certain criteria. It needed to be late model years, below 60,000 miles and be comparable to what was already in inventory. Things such as make, model, color and options were not restricted. The goal was to acquire the best mini-van at the most affordable price. Subsequently, the vans purchased were 2006 Ford Freestar models. The timing of this purchase could not have been better due to the depressed prices on the used car market. The pre-owned vans were purchase for just under $10,000 each. Since we acquired the vans, they have been reliable and cost effective. The amount of $46,000 was budgeted in the 2009 C.I.P. to replace two vehicles. By purchasing the two used vans instead of one new one, it resulted in savings of $28,000. The SFD budgeted $40,000 in 2011 to replace a 2006 Ford Crown Victoria. This vehicle was a police car with over 100,000 miles when received by the SFD. The department then received a second used police vehicle in order to fulfill the needs of the two investigators. This also had over 100,000 miles and both had several years of front line operations. The two units have served its purpose; however, the mileage is in excess of 140,000 miles and no longer cost effective. Both vehicles are worth less than $1,000 on the open market due to their age and condition. Both vehicles from the KHP are V6 models and are well equipped for fire department use. They are currently unavailable since they have not been cycled out of the KHP fleet, and will be released to the purchaser(s) in November. The attachments provide more detail on the price and availability of the used KHP vehicles. Since the KHP vehicles have less than 50,000 miles, they are highly sought after and any delay will risk losing the opportunity to purchase one or both. Therefore, staff is requesting that the City Commission authorize the City Manager to purchase the two vehicles as they become available for combined total of $29,400. FISCAL NOTE: The 2011 Vehicles and equipment sub-CIP includes $40,000 for the replacement of a Fire Marshal’s vehicle. Subsequent to the purchase, the fire department will spend an additional $1,800 per vehicle to install the necessary radio and emergency equipment. The total cost of this request will be approximately $33,000 and will result in the replacement of two vehicles, instead of one, and returning $7,000 to CIP. CONFORMANCE WITH STRATEGIC PLAN: This action conforms to Goal # 3: The City will provide the highest quality of services, consistent with Governing Body direction by maintaining a reliable fleet in a cost effective manner. COMMISSION ACTION RECOMMENDED: Authorize the City Manager to purchase two used KHP vehicles as described in the attachment for $29,400. Optional Actions: 1). Purchase one vehicle for $15,000; 2) Deny the request to purchase any vehicle