Gov. Chris Gregoire put the kibosh Monday on a plan to turn a $49,000 Mercedes van into the state’s first Lottomobile, part of efforts to promote the revenue-producing sales of state-run Lottery games.
Gregoire sent a terse letter Monday to state Lottery director Bill Hanson telling him to return the van to the dealer, which instantly killed ongoing plans to spend another $75,000 outfitting the tall “Sprinter” van with Lotto machines and brightly painted logos.
“I believe the purchase is inappropriate for state government, and I am thereby directing you to sell the van and ensure that you recoup all costs,” the letter stated. “Taxpayers expect value for every state dollar, and an expensive, customized sales van doesn’t meet the standards of value set by me and the public.’’
A receptionist for Lynnwood Mercedes-Benz said no one at the dealership was authorized to comment on the matter.
But Hanson talked to the dealership’s Sprinter van salesman Monday and said he was met with questions about why the state would have to sell back what had been a fuel-efficient diesel vehicle – one that was cheaper than anything else the state could buy.
“He said frankly there’s 15 to 18 of these vehicles (sold) to cities and counties; why is the state taking this stance?” Hanson said. “I said you have to understand that perception is everything. He said perception may be everything, but when are they going to listen to the facts?”
Hanson said the van has “roughly 300’’ miles on it and said he was unsure how much he could get in the exchange. But he didn’t question Gregoire’s judgment.
In his defense, Hanson originally thought he was buying a Dodge van. The Mercedes van is popular with shipping companies as well as local governments, and Hanson said its engine was a long-life diesel with high-efficiency features.
When the nameplate changed as a result of the Mercedes-Chrysler merger coming apart, the bids came back listing the van as a Mercedes. It was at that point, Hanson said, that he should have paid attention.
What might have put the project over the top was Hanson’s follow-up request for bid proposals to trick out the van in brightly colored paint, a television and electric terminals – for a cost estimated at about $75,000.
The idea was to allow the installation of Lottery terminals and other amenities.
The goal was to use the vehicle to become a rolling advertisement for the Lottery at more than 100 fairs, wine festivals and other large gathering around the state, doubling what the state already does with a pop-up tent and less visible means. Hanson said other states have “Lotto-mobiles” for this kind of use.
Hanson had said Friday that his agency was looking for new ways to boost sales, which were estimated at $491 million in fiscal year 2010. He also said lottery surveys have revealed that some people don’t buy lottery tickets because they don’t know how to play the games.
The agency had expected to pay for its van with some $2,000 in extra sales per weekend at promotional events. And although the van would have had German-made parts and a Mercedes hood ornament, Hanson said it would have been assembled in the U.S. by workers in South Carolina. By contrast, a step van alternative would have cost $80,000.
But the proposal comes at a time state government has cut some $10 billion in projected spending over the past three years and faces another $1.3 billion shortfall for next year.
News of the van broke Friday just as The Associated Press was reporting over the weekend that Gregoire’s June trade mission to the Paris Air Show cost $98,000, including a still-disputed bill for hotel rooms at nearly $500 per night. The overall costs were far above the $40,000 previously estimated for the trip.
The AP said other states had bigger bills: $157,746 in taxpayer costs for Republican South Carolina Gov. Nikki Haley and $112,228 for North Carolina Secretary of Commerce Keith Crisco and six staff members.
Brad Shannon: 360-753-1688
bshannon@theolympian.com
www.theolympian.com/politicsblog
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