Memorandum

City of Lawrence

Fire Medical

 

TO:

David Corliss, City Manager

 

FROM:

Mark Bradford, Fire Chief

Steve Stewart, Central Garage Superintendant

 

CC:

Cynthia Wagner, Assistant City Manager

Casey Toomay, Budget Manager

 

Date:

November 21, 2013

 

RE:

 

Lease of Ford Explorer – Staff Vehicle

 

Please place the following item on the consent agenda for the City Commission to consider at their December 3, 2013 meeting:

 

Background:

As part of the department’s FY 2013 budget request and in an effort to increase efficiency in operations, the department is requesting to replace a 2002 Dodge Durango (Unit 650).  This unit is 12 years old and has 111,617 miles currently recorded. This unit is assigned to the Prevention Chief and serves as a staff vehicle. All Division Chiefs are responsible for incident response to serve as division and branch officers.  This vehicle is being leased as a “beta” test to validate the indicated savings anticipated as outlined in Brian Watson’s memo dated September 5, 2013.  

 

Bid Pricing:

The department was authorized to go out for bid by the City Commission on November 21, 2013.  The following bids (#B1362UT) were received.

 

Vendor

Net Bid with

Trade In

Meet Specifications

Comments

Shawnee Mission Ford

$31,164.78 ea.

Yes

Recommend Bid: Lowest responsible bid meeting specifications

Laird Noller Ford

$31,554.37 ea.

Yes

Local Vendor not within 1%

Commerce Bank

Price to be Determined

No

Did document not complete. No pricing

Acme Auto Leasing North Haven, CT

$33,804.00

Yes

 

Acme Auto Leasing

North Haven, CT

$27,468.00

No

36 month closed end lease with mileage restriction. No pricing for buyout at end of lease.

Lease Payment Schedule:

 

Lease Payment Number

Lease Payment

Interest

Principal

Concluding Payment

 

 

 

 

$29,434.00

1

$10,388.26

$0.00

$10,388.26

$19,045.74

2

$10,388.26

$1,142.74

$9,245.52

$9,800.24

3

$10,388.26

$588.04

$9,800.22

$1.00

Totals

$31,164.78

$1,730.78

$29,434.00

 

 

 

Lease v. Purchasing:

 

Purchase Price

Underwriting Fee

Interest

Total

Difference

$29,009.00

$425.00

$1,730.78

$31,164.78

$2,155.78

 

Funding:

Funding was requested for this unit during the development of the FY 2012 budget and deferred to the FY 2014 Budget.  We received permission from the City Manager to conduct a “beta” test of Leasing v. Purchase.  The funds will come from the departments operating budget.

 

Recommendation Action:

Authorize staff to proceed with the vehicle replacement (see attached lease agreement):

 

1. Lease one (1) Ford Explorer, current model year, and all-wheel drive pursuit rated equipped with special police package on a three (3) year lease from Shawnee Mission Ford in the amount of $31,164.78.