08-22-2022 Council Packet - Laserfiche WebLink

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August 18, 2022 Mr. Adam Edwards, Orono City Administrator/City Engineer [VIA US MAIL AND EMAIL] City of Orono 2750 Kelley Parkway Orono, MN 55356 RE: 2022 Purchase of Command Vehicles Mr. Edwards, The Long Lake City Council has directed me to provide this letter to you and the Orono City Council in order to clarify Long Lake’s position and intent as to the purchase of two Chevy Tahoe SUV Command Vehicles (the “Command Vehicles”) which have been reviewed and discussed by both Orono and Long Lake at their respective meetings this month. On August 3, the Long Lake City Council approved the purchase of the two Command Vehicles, per the terms of the Fire Services Contract (the “Contract”). Long Lake respectfully declined Orono’s contingent offer to buy both vehicles outside of the Contract and have Orono own 100% of both. On August 8, the Orono City Council voted to purchase two Command Vehicles, outside of the Contract, which could potentially be used by the Long Lake Fire Department or for other Orono city purposes. The approved Long Lake Fire Department CIP for 2022 (approved by all parties in December of 2021) budgeted $65,000 for the replacement of Command Vehicle 2.1 The total cost proposal of $68,853.59 was therefore within the 10% threshold used by Orono in the past before requiring further ratification of CIP purchases. Regardless, the cost of the vehicle itself will be well within the $65,000 CIP budget, and Long Lake will seek additional bids for the outfitting work to achieve the total budgeted cost. It is apparent that both cities acknowledge the Long Lake Fire Department’s need for both Command Vehicles, due to the present state of the vehicles in use. It also appears clear that both cities desire to procure two Command Vehicles to address this need and support the Long Lake Fire Department. With the full approval of the 2022 CIP budget, all parties have approved the purchase of one Command Vehicle in 2022 (CMD 2). As a courtesy to Orono, Long Lake will wait for Orono’s review at its August 22nd Council meeting before initiating the purchase. This will also permit the cities’ respective fire services subcommittees to discuss this matter further at their scheduled meeting this Friday, August 19th. It is the intent of the Long Lake Fire Department to then make that approved purchase and invoice the respective parties in the amounts allocated by the Contract. As previously agreed, that vehicle will be a mutually owned asset of the Long Lake Fire Department. 1 The Orono City Council Meeting packet for August 8, 2022, Item 13, reflects the previous budgeted amount of $60,000 for CMD 2. This was adjusted by mutual agreement of the parties to $65,000 in December of 2021, and was approved at that level. The table also reflects a budgeted amount of $65,000 (2027) for CMD 1. This was adjusted and approved at $75,000.