Item Coversheet

*4.F.1.


Shakopee City Council
October 17, 2023


FROM:Bill Egan, Public Works Director
TO:Mayor and Council Members
Subject:

Purchase a SUV vehicle for Administration and declare existing vehicle as surplus.      

Policy/Action Requested:
Approve the purchase of a 2023 Ford Explorer from Apple Ford, in amount of $47,425.00; and declare the existing vehicle as surplus.
Recommendation:
Approval as requested.
Discussion:

On September 5th, 2023, vehicle sk1379 (4517 miles) 2021 Ford Explorer was involved in an accident on 8th Ave and Lewis St. A vehicle traveling West on 8th Ave did not yield at the intersection and struck sk1379 resulting in a rollover accident. An estimate of damages from Referral Collision totaling $44,863.78 was received on 09/07/2023 (See attachment), repair cost exceeds the vehicle value less salvage value. As a result, it is more cost effective to not repair the vehicle but rather sell the damaged vehicle as it stands and purchase a new vehicle.

 

Staff is requesting the purchase of a replacement vehicle that is in stock and on the ground at a local dealership, this will require us to pay sticker price. Normal practice is to purchase vehicles through state bid and in the past, this process normally took about 90 days. Vehicles purchased off state contract over the last 3-4 years have had extensive wait times, up to 2-3 years and multiple orders cancelled. Staff has contacted several venders to view the limited inventory of Ford Explorers like the 2021 that was totaled, and few are available. Two 2023 Ford Explorer’s from Apple Ford (See Attachments) are on the lot and Staff is requesting to purchase the lower priced one at $47,425.00.

The old 2021 Ford Explorer that will be deemed surplus will either be handled through a claim with the insurance company and/or sold “as is” at auction.

Budget Impact:

The purchase price of the vehicle is $47,425.00 less the repair estimate of $44,863.78, leaving a difference of $2,461.22. Currently, we do not have the full replacement value of the vehicle from the insurance company so these numbers are subject to change.

 

The vehicle is funded under the Equipment Internal Service Fund. Revenues from the sales of surplus equipment and any claim receipts from the accident will be deposited into the Equipment Internal Service Fund.

ATTACHMENTS:
Description
Apple Ford Quote #1
Apple Ford Quote #2
Repair Estimate