Memorandum                          

City of Lawrence

Fire Medical

TO:	David Corliss, City Manager
FROM:	Mark Bradford, Fire Chief Robert Aaron, Central Garage Superintendent
CC:	Casey Toomay, Assistant City Manager
Date:	October 1, 2014
RE:	Lease of Ford Explorer – Staff Vehicles

Please place the following item on the consent agenda for the City Commission to consider at their October 28, 2014 meeting:

Background:

As part of the department’s FY 2013 budget request and in an effort to increase efficiency in operations, the department requested to replace 7 staff vehicles through a vehicle lease program.  We currently have a 1999 Ford Taurus (Unit 617) assigned to the prevention division that is 15 years old and has 111,617 miles currently recorded. This unit has been removed from service with an inoperable transmission. 

In addition, the following vehicles are in our replacement plan.  All of these vehicles have been identified by the central vehicle maintenance superintendent to be replaced due to emergency operations factors.

Model Year	Make	Model	Mileage	Notes
2003	Chrysler	Sebring	84,900	Paint peeling, Electric lock inoperable, and driver’s door panel broken off.
2006	Ford	Escape	53,657
2006	Ford	Escape	51,753
2006	Ford	Escape	52,286
2005	Ford	Taurus	84,286	Brakes need replaced possibly rotor replacements
2005	Ford	Explorer	84,286	Cruise control failed; Broken windshield, rear door inoperable.

All staff positions are responsible for incident response to serve as division and branch officers. 

Bid Pricing:

The following figures utilize the Kansas Procurement Contract number 36159/EVT0000825

• An Underwriting Fee of $425.00 is required per transaction, not per unit.  It can be paid at time of delivery or funded over the term (included above).  If multiple vehicles are leased at the same time only one Underwriting Fee is required.
• No Security Deposit
• No Prepayment Penalty
• No Mileage Penalty
• At Term End, Municipality Buys Equipment for $1.00

Lease v. Purchasing per Vehicle

Purchase Price	Interest	Total
$29,075.00	$1,502.85	$30,577.85
$29,075.00	$1,502.85	$30,577.85
$29,075.00	$1,502.85	$30,577.85
$29,075.00	$1,502.85	$30,577.85
$29,075.00	$1,502.85	$30,577.85
$29,075.00	$1,502.85	$30,577.85
$29,075.00	$1,502.85	$30,577.85

Difference for seven (7) vehicles is $10,519.95.

Funding:

Funding was requested for these units during the development of the FY 2012-15 Operating Budgets and deferred to the FY 2015 Budget.  We received permission from the City Manager to conduct a “beta” test of Leasing v. Purchase in December, 2013.  The funds will come from the department’s operating budget.

Recommendation Action:

Authorize staff to proceed with the vehicle replacement:

1. Lease seven (7) Ford Explorers, current model year, all-wheel drive pursuit rated, equipped with special police package on a three (3) year lease from Shawnee Mission Ford in the amount of $214,469.94.  Annual payments will be as follows:

FY 2015        $71,489.94

FY 2016        $71,489.94

FY 2017        $71,489.94 (plus, $7.00 and City owns vehicles outright)