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HomeMy WebLinkAbout04.18.22 Work Session Packet CITY OF Meeting Location: FARMINGTONFarmington City Hall 430 Third Street Farmington, MN 55024 CITY COUNCIL WORK SESSION MEETING AGENDA April 18, 2022 5:00 PM 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS (a) Police and Fire Fleet Leasing Presentation (40 Minutes) (b) Discuss Dakota County Leaving the Dakota Broadband Board-(20 Minutes) 4. CITY ADMINISTRATOR UPDATE S. ADJOURN CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 Farmington M N.gov TO: Mayor, Councilmembers and City Administrator FROM: Jim Constantineau, Deputy Chief of Police SUBJECT: Police and Fire Fleet Leasing Presentation (40 Minutes) DATE: April 18, 2022 INTRODUCTION City staff recently met with representatives from Enterprise Leasing to discuss converting the police and fire fleet from purchased/owned to leased, and the potential cost savings the city could realize by doing so. Enterprise Leasing is currently servicing around 65 cities and counties in Minnesota, including Inver Grove Heights, Hastings, Bloomington, Plymouth, and Hennepin and Steele counties. DISCUSSION Enterprise Leasing laid out a plan that would convert the police and fire department's fleet to a leased fleet. Enterprise would purchase vehicles to replace our current fleet, and the city would enter a 4-year lease for each vehicle. Once those vehicles are road-ready, Enterprise would sell our current fleet(in compliance with public auction requirements) and the city would receive the proceeds. At the end of the lease,the city would receive a replacement vehicle and Enterprise would sell the previous vehicle,with the equity in the vehicle being returned to the city. Some of the advantages to leasing include: • I mproved cash flow vs buying outright • Newer vehicles translate to higher gas mileage and less out-of-warranty repairs • Enterprise has significant buying power which would make it easier to get vehicles in a timely manner,which is something we have been dealing with for several years • Not having to deal with disposing of a vehicle after we take it out of service Eventually,this program would be expanded to include most non-large city vehicles. Enterprise has also evaluated the fire department's chief and utility vehicle fleet. BUDGET IMPACT Enterprise's analysis of the police department fleet and the values (pre-Covid) of our current fleet are projecting a savings of over$220,000 over five years vs. buying the vehicles outright.The analysis for the fire department fleet is projected at$57,900 over a five year period. ACTION REQUESTED Listen to the presentation by Enterprise and city staff, ask any questions you might have, and provide direction regarding the request to enter into an agreement with Enterprise. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Peter Gilbertson, IT Director SUBJECT: Discuss Dakota County Leaving the Dakota Broadband Board-(20 Minutes) DATE: April 18, 2022 INTRODUCTION Dakota County has announced they are planning to leave the Dakota Broadband Board. DISCUSSION At the Dakota Broadband Board meeting held on 4/13/2022, Dakota County presented that they plan to exit the DBB. Mayor Hoyt and Peter Gilbertson will provide details of what this means and how it will effect Farmington. BUDGET IMPACT We currently pay$31,580 for our DBB operational costs and membership. ACTION REQUESTED Discuss the implications of whatthis has on both the DBB and Farmington moving forward.