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HomeMy WebLinkAboutX-E-02 2024 Budget Pre-Approval of Pick-Up Trucks City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Dan Wietecha, City Administrator Date: August 21, 2023 Item: 2024 Budget Pre-approval of Pick-up Trucks Council Actions Requested: Authorization to order 6 pick-up trucks for lease as part of 2024 budget. Background Information: Regarding the 2024 budget plan, there are supply chain delays that will impact a number of the items included in the proposed budget, and vehicle orders with state-bid pricing have early and short windows for ordering (which does not guarantee delivery and purchase). The window for ordering Dodge pick-up trucks through Enterprise is presently open without an identified closure date. As we are changing our fleet management practice to replacing vehicles on a 5-year basis, the budget recommends purchasing some vehicles outright and leasing several vehicles in order to transition into the added upfront cost. All purchases and leases would be at state/consortium bid pricing. In addition to financing the lease, working through Enterprise Fleet Management gives us additional access to vehicle availability. In order to avoid missing the window, I request authorization to order these 6 vehicles for lease as part of the 2024 budget recommendation. Facilities Dept. – Pick Up Truck –$11,000 lease per year plus $6,000 upfitting, toolbox, and registration: The current 2007 pickup truck is 2-wheel drive which limits its ability for afterhours calls during winter. X-E-02 Public Works Dept. – 5 Pick Up Trucks – $55,000 per year lease plus $35,000 upfitting, toolbox, liftgate (on one), and registration: The current pickup trucks are 2001, 2001, 2003, 2006, and 2007 models in the Streets and Engineering Departments. Financial Impact: Estimated $66,000 annual lease plus $41,000 upfitting, toolbox, liftgate (on one), and registration. Committee Discussion: N/A Attachments: N/A X-E-02