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HomeMy WebLinkAboutCS 68-05PICKERING REPORT TO EXECUTIVE COMMITTEE Report Number: CS 68-05 Date: October 11,2005 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Purchase of Vehicles for Municipal Law Enforcement Services Staff Amendment to Allocation of 2005 Capital Budget Recommendation: That Report CS 68-05 of the Director, Corporate Services & Treasurer be received for information; and That the 2005 capital budget allocation in the amount of $30,000. for the purchase of one vehicle for Municipal Law Enforcement Services staff be used as a down payment towards the purchase of six vehicles in 2005, pending availability; and That Council authorize the Director, Corporate Services & T'reasurer to finance the balance of the purchase price for the vehicles from an internal loan with the estimated annual repayment of $40,000. to be included in the 2006, 2007 and 2008 annual current budgets; and o Further, that the Director, Corporate Services & Treasurer be given authority to give effect thereto. Executive Summary: The 2005 approved Capital Budget for By-law Services included the provision of $30,000. to replace a 1994 vehicle. The purpose of the above recommendation is to change the initial purchase of one vehicle to six vehicles for Municipal Law Enforcement Staff, with a $30,000. downpayment and subsequent internal financing of $40,000. per annum for the years 2006, 2007 and 2008. At the end of this time period it is anticipated that this process would start over again with the acquisition of replacement vehicles. Report CS 68-05 Purchase of Vehicles for MLEO Staff October 11, 2005 Page 2 061 Financial Implications: (example only) · 2005 Capital budget impact would remain at $30,000 · 3 automobiles @ $24,728. purchase price * · 3 mid size pick-up trucks @ $26,156 purchase price* purchase price includes taxes, lighting equipment (pst only, gst rebate) · interest rate is estimated at 3.9% Total Cost to Purchase: Three (3) automobiles Three (3) mid size pick-up trucks Sub-total: Trade-in Estimated Cost: $ 74,200 78,500 $152,700 $ 4,000 $148,700 Total Cost to Finance: Less: 2005 budget $148,700 (30,000) $118,700 2006-2008 Financing $39,551 per annum Note: *These figures are estimates only and will be further determined once formal quotations are obtained through the Region of Durham fleet pricing, pending approval of this report to move forward in this direction. Background: Prior to July 15, 2005, the six Municipal Law Enforcement Officers operated with the use of four vehicles. It should also be noted that extensive repairs were undertaken on three vehicles in order to ensure the vehicles ~Nere equipped with air conditioning due to health and safety related issues with the weather encountered this summer. Recently, the fourth vehicle, the 1994 Ford Explorer' with over 200,000 km, has been withdrawn from service due to the level of repairs (front seal for the transmission and additional minor repairs). Consequently, Municipal Law Enforcement Services staff were reduced to the use of three vehicles among six Municipal Law Enforcement Services staff. There is currently one vacant position within the By-law section, which is anticipated to be filled within the month, which adds a further burden of seven officers sharing three vehicles. To assist in the interim, arrangements have been made for a short-term lease of one vehicle from August 15, 2005 through to November 1,2005 at a cost of $699 per month plus applicable taxes. CORP0227-07/01 0 6 2 Report CS 68-05 Purchase of Vehicles for MLEO Staff October 11, 2005 Page 3 Our purchasing procedures do not permit a limitation to a specific model of vehicle and if replacement vehicles are purchased individually, we cannot move towards a standardized vehicle or vehicles through our current method of vehicle replacement. At present, the remaining three vehicles are comprised of the following; Unit Make/Model Kilometers 404 1999 Chevy Malibu 170,000 km 405 1999 Ford Ranger 100,135 km 406 2000 Ford Focus 60,000 km All vehicles average over 20,000 km per year. The newest vehicle within the fleet is the 2000 Ford Focus, which although does not incur the mileage of the remaining vehicles, is now five years old and repairs can be anticipated. Due to the growing demands within this area and the desire to present a professional, corporate image through the purchase of six vehicles, consideration is being requested to replace this vehicle as well. Based on the estimates received, this vehicle would have a trade-in allowance of approximately $2000., along with a trade-in allowance of $2000. for the 1999 Ford Ranger, which will be used to reduce the capital cost. Corporate Image Traditionally vehicles for By-law have been acquired through "hand me downs" after the vehicles become no longer useable in the other Departments, due to either age, high mileage, or a combination, or were purchased in different years as needed. As a result the By-law fleet of vehicles are all different makes, styles and colours. It is felt that a more uniform fleet would better represent the City's image and the role of By-law Enforcement Services. It is anticipated that should the recommendations of this report be adopted, vehicles will be standardized as to make, model, colour (preferably white) and year (2006). The City's vehicle magnetic markers together with By-law Enforcement identifiers will be installed on each vehicle. Hybrid Vehicles To assist us in presenting the decision to move towards the purchase of six vehicles, alternatives such as hybrid electric/gas models were investigated. Initial pricing for a vehicle, such as a Ford Escape would be in the price range of $38,000. per vehicle, which is just not cost effective for our needs. A smaller vehicle, such as the Toyota Prius was investigated, however, due to its size, would not meet the needs of the Division. It is anticipated that when the new fleet is replaced, hybrid vehicles will be more common and their potential use for this purpose will be invested further at that time. CORP0227-07/01 Report CS 68-05 Purchase of Vehicles for MLEO Staff October 11, 2005 Page 4 063 Proposed Course of Action In reviewing the 2005 capital budget allocation, along with the service levels established for the Division and the need to enhance the professional, corporate image of the By- law Section, it is being recommended that six vehicles be initially financed through the $30,000 allocation. It would be our intent, if approved, that pricing would be obtained through Supply and Services using the Region of Durham fleet services due to cost efficiencies. Initial indications are that the Chevy Impala would be the most effectively priced mid-size car, and also meet the needs of the Division. Ideally', the Division would like to purchase three mid-size cars, along with three small trucks, however, once approved, these details would be investigated thoroughly. In reviewing the Divisional requirements, the following standard equipment would be required: air conditioning, automatic transmission, power windows, keyless entry, light package for enforcement vehicles, 6 cylinder and white in colour. Power windows are required for parking enforcement staff to speak to a vehicle operator on the passenger side to request that they move their vehicle if they happen to be in a prohibited area, such as a fire route. Keyless entry is being requested for safety reasons as it provides the officer a quick opportunity to unlock their vehicle in the event they need to return to the safety of it immediately. The mid-size cars being requested should be front wheel drive, and the small trucks should be equipped with four wheel drive and an extended cab to allow the officer a place to store equipment. A cap on the back of the truck would also allow staff to keep confiscated items safe until they can be delivered to a designated storage area. Financial Plan The 2005 Budget contains a provision of $30,000. for the purchase of one vehicle. However, it is recommended that all four existing vehicles should be replaced now, with two additional vehicles being acquired for a total of six. In order to comply with the intent of the budget provision without amending that budget and leveraging the approved dollar amount to meet current needs as described above, it is proposed that six vehicles be acquired through internal financing and the 2005 provisions be used to reduce the amount to be financed. For future years budget provisions, instead of including $30,000. per year to purchase one vehicle over the next 5 years the budget will be increased to $40,000. per year for three years after which the same process would start over again. This way the City can accomplish several desirable objectives: 2. 3. 4. Replace the aging fleet immediately Standardize the vehicles make, model, colour and year Enhance the visibility and image of By-law Enforcement Services Provide a model for the replacement of the City's vehicles in other Departments C0RP0227-07/01 O64 Report CS 68-05 Purchase of Vehicles for MLEO Staff October 11, 2005 Page 5 Attachments: Not applicable Prepared By: Deb~'A. Ben-fley- city Clerk Approved / Endorsed By: Gillis A. Paterson Director, Corporate Services & Treasurer Copy:' Chief Administrative Officer Recommended for the consideration of//~ Pickering City Council ~,/,/, Thomas ~J. Quin~Chief ~lministra~~cer ' CORP0227-07/01