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:	November 25, 2014
RE:	Lease of Ford Explorer – Staff Vehicles

Background:

On October 28, 2014, the City Commission approved a request for the Fire Medical Department to lease seven (7) Ford Explorers from Shawnee Mission Ford from a Kansas Department of Transportation Procurement Contract.  While the State procurement contract was competitively bid, some local vendors did not participate in the bidding process.  Staff requested the purchase approval be rescinded and re-bid the lease of the vehicles.  Staff personally called the local vendor to ensure they were aware of the bid as requested.

Bids received

Vendor	Meets Spec	Annual Payment	Total for 3 years
Shawnee Mission                    Ford	Yes	$70,152.72	$210,458.16
Laird Noller Ford	Yes	$70,494.64	$211,483.92

• No Security Deposit
• No Prepayment Penalty
• No Mileage Penalty
• At Term End, Municipality Buys Equipment for $1.00

Shawnee Mission submitted the lowest bid.  Following the City’s one percent local preference, the recommendation will be for Laird Noller.

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 Laird Noller Ford in the amount of $211,483.92.  Annual payments will be as follows:

FY 2015        $70,494.64

FY 2016        $70,494.64

FY 2017        $70,494.64 (plus, $7.00 and City owns vehicles outright)