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HomeMy WebLinkAbout5G - Replacement of Parks Dept. Equipment MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: 4646 Dakota Street S.L Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT MARCH 17,2008 5G AL FRIEDGES, PARKS & FLEET MAINTENANCE SUPERVISOR CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE PURCHASE OF: 1. ONE STERLING L T9500 TANDEM DUMP TRUCK AND APPURTENANT EQUIPMENT 2. ONE HOLDER SIDEWALKlTRAIL MACHINE 3. ONE TORO MULTI-PRO 57000 HERBICIDE SPRAYER 4, ONE FORD F550 AND APPURTENANT EQUIPMENT Introduction The purpose of this report is to consider approval of a resolution authorizing the purchase of: 1. One Sterling L T9500 tandem dump truck and appurtenant equipment 2. One holder sidewalk/trail machine 3. One Toro Multi-Pro 57000 herbicide sprayer 4. One Ford F550 and appurtenant equipment And the trade in of: 1, One 1996 Ford L8000 (Unit #519) dump truck 2. One 1998 Holder (Unit #506) sidewalk/trail machine 3. One 1997 Cushman (Unit #536) herbicide applicator 4. One 1994 Ford F350 (Unit #459) dump box and plow Historv As part of the Capital Improvement Program (CIP), the City Council adopts an Equipment Replacement Fund and Matrix each year. The purpose of this fund and matrix is to identify and budget for equipment and vehicles that need replacement due to age or wear, or for additional equipment that needs to be purchased due to growth. Actual expenditures for all equipment identified in the matrix is subject to Council approval. The matrix identifies: $205,815 for a tandem dump truck and accessories; $82,538 for a sidewalk/trail plow and $31,933 for an herbicide sprayer. Staff was given approval at the February 4, 2008 City Council meeting to move the replacement of a 1994 Ford one ton dump truck (Unit #459) up one year (from 2009 to 2008) for replacement due to transmission, bell housing and drive train problems, and to push back one year a 1997 Ford pickup (Unit #453) from 2008 to 2009. Moving Unit #453 back one additional year will help balance the Equipment Replacement Fund and Matrix budget. There is $64,471.00 identified for this purchase. The 2008-2019 Equipment Matrix identifies the replacement of: 1. One 1996 Ford L8000 (Unit #519) dump truck R:\Council\2008 Agenda Reports\03 17 08\equipment p~~!1oBake.com Phone 952.447.9800 / Fax 952.447.4245 2. One 1998 Holder (Unit #506) sidewalk/trail machine 3. One 1997 Cushman (Unit #536) herbicide applicator 4. One 1994 Ford F350 (Unit #459) dump box and plow. Although these are suggested replacement schedules, as with any piece of equipment, the maintenance records and repair costs related to each vehicle or piece of equipment are analyzed prior to requesting Council approval. An analysis of the equipment proposed for replacement is outlined later in this report. Current Circumstances In order to utilize current state bid prices and to receive equipment prior to high use periods, staff proposes to proceed with purchasing the listed equipment. For City Council reference, attached to this agenda is a detailed needs analysis for each piece of equipment focusing on the seven areas approved at the February 4,2008, City Council meeting. 1996 Ford LeOOO Dumo Truck The Public Works Division currently utilizes six-five ton single axle trucks and one tandem truck. The City has not increased the number of dump trucks that we operate in the fleet since 2002 although the need for hauling capacity has increased. For this reason Staff recommends replacing the existing 1996 Ford L8000 single axle truck with a tandem axle truck which will increase the City's hauling capacity without increasing the number of vehicles in the fleet. All dump trucks are utilized by streets, sewer, water, parks and water resources. Each division utilizes these vehicles to accomplish a variety of tasks including snow plowing, mixing sand and salt, hauling and spreading of salUchemicals and gravel, hauling of street sweepings, aglime, black dirt, unsuitable soils from utility breaks, hauling debris such as concrete, blacktop, tree and storm debris and other maintenance related tasks. The existing 1996 Ford L8000 is 13 years old and has accumulated 120,672 miles. This truck has various needed repairs which are as follows: Reoairs Needed Parts Costs Replace and paint rusted out box, $12,779.00 with hoist Replace and paint worn out wing $8,096.00 Replace and paint worn out front $6,894.00 plow Replace front tires $571.92 Replace front axle king pins $310.25 Replace tie rod ends $201.85 Replace steering pitman arm $96.64 Replace rear brakes and drums $652.89 Total parts $29,602.55 Tax $1,924.17 Parts subtotal $31,526.72 Labor - 65 hours at $30/hour $1,950.00 Grand Total $33476.72 R:\Council\2008 Agenda Reports\03 17 08\equipment purchase agenda. doc 2 These repairs would cost $33,476.12. At this time, the City can trade the 1996 Ford L8000 and receive $18,800.00 as trade on a new truck. Also, because of the age of this truck, it is not adaptable to the upgraded controls that are being built into our newer model vehicles. Some of the benefits of new equipment on dump trucks are as follows: 1. Upgraded controllers allow staff to concentrate on operating the truck in lieu of operating de-icing equipment. 2. New controllers allow for programming of application equipment prior to the snow fall season and it also allows the pre-programming of application rates which will allow staff to establish guide lines for application rates based on pavement conditions. 3. The new controllers allow staff to record salt use application data which allows Supervisory staff to work with operators to make operational improvements based on the collected data. 4. The new controller will allow staff to lower application rates to 1171b per lane mile. This reduction should result in cost savings of $613.85 for each event; and with an average of 10 - 2 inch events per year, should effect cost savings of $6,138.50 per year. The addition of a rear wing will allow staff to complete a one pass use of underbody in lieu of utilization of two trucks for packed snow conditions, which sometimes happens in side street applications without the use of anti-icing. The rear wing will also allow the snow plow operator the ability to move up to 4 inches of snow without having to attach the front plow. This should provide the operator safer driving conditions and maneuverability while removing snow in residential areas. Bids were received from four vendors for the truck chassis, all of which were offered through the State of Minnesota Purchasing Program. The bids varied by $12,940.89. The low bid amount is $78,714.15 from Boyer Truck which staff recommends accepting. The bids received are as follows: Boyer Twin Cities Astleford State Truck Mack & International Center Volvo Mack Trucks Make/model Sterling Mack GU713 International Freightliner LT9500 7600 6x4 MZ Price $92,710.00 $97,539.18 $95,044.00 $94,562.01 Trade-in ($18,800.00) ($17,000.00) ($12,000.00) ($8,500.00) Sub-total $73,910.00 $80,539.18 $83,044.00 $86,062.01 Tax $4,804.15 $5,235.05 $5,397.86 $5,594.03 Total $78,714.15 $85.774.23 $88.441.86 $91.656.94 Bids were received from three vendors to supply and install the box, front plow, under body plow, wing, sander; pre wet tanks, controls and appurtenant equipment, all of which were offered through the State of Minnesota Purchasing Program. The bids varied by $3,411.64. There is a difference of $2,647.59 between Aspen Equipment (low bid) and J-Craft (second lowest bid). The low bid provided by Aspen Equipment does not meet the City's specification request R:\Council\2008 Agenda Reports\03 17 08\equipment purchase agenda.doc 3 for applications rates. Aspen is unable to provide the City with equipment to meet our application rates at this time. The application rate specification is critical to the operation of the de-icing equipment. These rates are critical to the management of de-icing products from an environmental and budgetary standpoint. For that reason staff is recommending rejecting the low bid provided by Aspen. Staff recommends awarding the equipment bid to J-Craft for $91,432.38. Aspen J-Craft Crysteel Truck Equipment Price $83,366.00 $85,852.00 $86,569.42 Tax $5,418.70 $5,580.38 $5,627.01 Total $88,784.79 $91,432.38 $92 196.43 The following safety equipment with costs listed, will be installed on the proposed truck: Item Cost GL3000C Guidance Laser $2,700.00 First Aid Kit $50.00 Road Watch $600.00 CB Radio. $150.00 Sub-total $3,500.00 Tax $227.50 Total $3 727.50 .CB Radio for Tandems only as it is required at gravel pits The total cost for the truck chassis, box, front plow, underbody plow, wing, sander, pre wet tank controls, safety and appurtenant equipment is $173,874.03; $205,815.00 was allocated in the matrix for this purchase. 1998 Holder SidewalklTrail Machine The Parks Maintenance Division currently utilizes a 1998 Holder SidewalklTrail Machine for snow removal functions on the sidewalks and trails during the winter months. This machine is designed very narrow in width, can withstand constant jarring and shaking that occurs when plowing and is also capable of handling heavy snowfalls. We also utilize Toro mowers equipped with brooms and blowers in cleaning ice rinks and sidewalks around City facilities but are not intended to clean long expanses of trails or remove heavy or deep snow. The majority of the sidewalks in our community are five feet (60" wide). Because of the narrow widths of sidewalks, this specialized piece of equipment is utilized for snow removal. Currently, there are only three manufacturers that offer a heavy duty machine equipped with snow blowers, plows and brooms to perform winter maintenance functions. The existing 1998 Holder is 10 years old and has accumulated 1,933 hours. This piece of equipment needs various repairs which are as follows: R:\Council\2008 Agenda Reports\03 17 08\equipment purchase agenda.doc 4 Reoairs Needed Parts Costs Front cab doors rusted out $6,300.00 Front cracked lift arms $2,800.00 Reolace worn out rear offset axles $8,400.00 Battery $78.95 Hiah flow kit for broom $7,300.00 Replace broom complete assembly $5,318.00 replace worn out drive system and hydro turn on broom Replace muffler and pipe $575.00 Arctic heat kit $1,000.00 Total parts $31,771.95 Tax $2,065.18 Parts subtotal $33,837. 13 Freiaht $500.00 Labor - 100 hours at $3,000.00 $30/hour Grand Total $37.337.13 These repairs would cost $37,337.13. At this point, the City can trade the 1998 Holder for $10,000.00. Staff contacted three vendors. All three vendors offered their machines on the State of Minnesota Purchasing Program. Staff looked at purchasing slightly used sidewalk plows, but could not locate any. The bids for a new sidewalk plow varied by $16,812.00. The low bid is $86,280.00 from Cushman Motor Company. The bids received arS as follows: Cushman Motor MacQueen Sharber and Eauioment Sons MakelModel Holder 4.74 Trackless MT5 Belos Trans Giant Price $86,280.00 $99,388.00 $106,800.00 Trade-In ($10,000.00) ($3,500.00) ($10,000.00) Sub- Total $76,280.00 $95,888.00 $96,800.00 Tax $4,958.20 $6,232.72 $6,292.00 Total $81.238.20 $102.102.72 $103.092.00 $82,538.00 was allocated in the matrix for this purchase. At this time staff recommends retaining the 1998 Holder rather than purchasing a replacement. Staff believes that additional research needs to be conducted before we can justify the expensive purchase. The following are areas that staff needs to seek more information: 1. How many miles of sidewalks vs. trails are maintained during the winter months? 2. What is the hourly cost to operate this piece of equipment including purchase cost of the sidewalk machine, operator cost, fuel and repairs? We can track these costs from past history of our existing 1998 Holder. R:\Council\2008 Agenda Reports\03 17 08\equipment purchase agenda.doc 5 3. What would the cost be to contract out the sidewalk section of our Winter Maintenance Program? 4. Are there other less expensive equipment purchase options that would still perform the same level of service? 5. Based on the cost of snow removal on our sidewalks, is this still a level of service that the City still wants to perform? 1997 Cushman Herbicide ADDlicator Currently the Parks Maintenance Division operates a 1998 Utility vehicle equipped with a 50 gallon tank, electronic boom valves and sprayer controls. This piece of equipment is responsible for spraying herbicides on boulevards, on areas adjacent to ponds, lakes and private property, and also to highly sensitive areas though out our parks system. The existing herbicide sprayer to be replaced is 10 years old, does not have a pressurized cab for operator safety, is not equipped with wind guards which results in herbicide drift during application, and has to have herbicides manually mixed. Replacement of this equipment is recommended. Since 1998 there has been an increased environmental awareness in the public sector, Because of this heightened awareness, technology on new machines has greatly improved. The new utility vehicle has the capability to calibrate chemical application rates which eliminated the potential for operator error and over excessive herbicide application. The herbicide sprayer to be replaced does not have many repairs necessary, but rather the reason for replacement is based on new technology, environmental concerns, public perspective, more precise application rates and operator safety. Only two venders supply this type of equipment locally and therefore Staff was only able to obtain two quotes for new equipment. Staff also investigated a used purchase option and received an additional quote. The quotes varied by $20,224.07. The cost to purchase the used vehicle is the least cost option. The City received a low quote of $25,491.84 from MTI Distributing on a used Toro Multi-Pro 5700-0 with 886 hours which staff recommends purchasing. This unit will be equipped with a new pressurized cab, air conditioning, new electric fold boom, rebuilt pumps, new wind guards, boom nozzles and complete service. MTI Distributing Turfwerks MTI Make/Model Toro Multi-Pro Smithco 3180 Toro Multi-Pro 5700-0 (used) 5700-0 Price $25,936.00 $46,689.00 $44,925.74 Trade-In ($2,000.00) ($4,790.00) ($2,000.00) Sub- Total $23,936.00 $41,899.00 $42,925.74 Tax $1,555.84 $2,723.44 $2,790.17 Total $25,491.84 $44,622.44 $45.715.91 R:\Council\2008 Agenda Reports\03 17 08\equipment purchase agenda.doc 6 $31,933.00 was allocated in the Matrix for this purchase. 1994 Ford F350 The Public Works Maintenance Divisions currently utilize four-one ton trucks with dump boxes and one-two ton truck with a dump box. These five vehicles are utilized by Parks, Streets, Sewer, Water and Water Resources. These trucks are utilized for basically the same functions as our dump trucks, but on a smaller scale. The following are tasks these pieces of equipment are utilized for: ~ Landscaping functions, Le. hauling black dirt, mulch, rock, sod and other related equipment ~ Hauling snow from Main Avenue, Dakota Street, Arcadia Avenue, parking lots and public buildings ~ Plowing snow and spreading of salt/chemicals ~ Pulling trailers, equipment and appurtenant equipment ~ Pulling wood chipper for tree removal operations ~ Park and athletic field maintenance activities ~ Street and storm sewer repairs The existing 1994 Ford F350 is 14 years old and has accumulated 98,819 miles. This truck has many service repairs that are needed and are as follows: Repairs Needed Parts Costs Transmission $2,814.95 Tires $611.22 Dump box with paint $6,947.00 Rusted cab repair $2,400.00 Fuel tank $338.05 Oil leaks on engine $425.00 Replace hvdraulic tank $400.00 Frame is rusted out, it is discontinued, can not buy anymore Replace rear leaf springs $800.93 Total Parts $14,737.10 Tax $957.91 Parts subtotal $15,695.01 Labor - 36 hours at $30/hour $1,680.00 Grand Total $17,375.01 These repairs would cost $17,375.01. At this point the City can trade in the 1994 Ford F350 and receive $2,200.00 as a trade in on a new truck. Staff will utilize the proposed two ton chassis for upgrading the anti-icing and a new de-icing program for the Blind Lake watershed area. Bids were solicited from four vendors. Chevrolet and Dodge did not respond or supply bids, resulting in only two bids. The two bids received were through the State of Minnesota Purchasing Program. The low bid amount is $34,713.66 from Elk River Ford which staff recommends purchasing. The bids received are as follows: R:\Council\2008 Agenda Reports\03 17 08\equipment purchase agenda. doc 7 Elk River Ford Boyer Ford State bid Yes Yes Make/model Ford F550 Sterlino Bullet Price $34,644.99 $39,687.00 Trade-in ($2,050.00) ($2,000.00) Sub-total $32,594.99 $37,687.00 Tax $2,118.67 $2,449.66 Doc Fee 0 0 Total $34,713.66 $40,136.66 Staff also solicited a quote from Wolf Motors a non-state bid vendor to ensure that the best prices were being received. Wolf Motors quoted the City a price of $34,321.27 for the same vehicle. Based on that quote staff believes the Elk River Ford price is a good value. The cost of the City preparing our own separate specifications re-bidding this equipment outside of the State Bid Process would exceed the $392.39 savings provided by Wolf Motors and therefore is not warranted. Bids were received from three vendors to supply and install the dump box, snow plow and related appurtenant equipment. The bids varied by $964.16. The low bid amount is $19,632.75 from Aspen Equipment which staff recommends purchasing. The bids received are as follows: Aspen Truck Utilities Crysteel Truck Equipment Price $18,434.51 $18,647.00 $19,339.82 Tax $1,198.24 $1,212.06 $1,257.09 Total $19,632.75 $19,859.06 $20 596.91 The following safety equipment with costs listed, will be installed on the proposed truck: Item Cost Trianoles, fire extinouisher $200.00 First aid kit $50.00 Road Watch $600.00 Sub-total $850.00 Tax $55.25 Total $855.25 The total cost for the truck chassis, dump box, plow, related appurtenant equipment and safety equipment is $54,809.27. $64,471.00 was allocated in the matrix. ISSUES: Staff has completed the equipment analysis for each piece of equipment covered in this report. Based on that analysis Staff is recommending purchase of two new pieces of equipment, one used and the delay of one. Staff believes these recommendations will maximize the value to residents for the approved equipment. Additionally the proposed equipment purchases will eliminate one R:\Council\2008 Agenda Reports\03 17 08\equipment purchase agenda.doc 8 gas powered vehicle from the City Fleet. The current herbicide sprayer is gas powered and the replacement will be bio-diesel compatible. As recommended in the report staff proposes to evaluate additional options with respect to the Sidewalk Plow prior to making a recommendation to the City Council. FINANCIAL IMPACT: The Equipment Matrix allocated $302,219.00 for the purchase of the Dump Truck, 2- Ton Truck and Herbicide Applicator. The total cost of the recommended equipment is $254,567.53 which is $47,651.47 less than was budgeted. ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution authorizing the purchase of the proposed equipment and trade in the existing equipment as detailed in this report. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason and provide staff with direction. RECOMMENDED MOTION: Alternative #1, Reviewed by: 1J R:\Council\2008 Agenda Reports\03 17 08\equipment purchase agenda.doc 9 A RESOLUTION AUTHORIZING THE PURCHASE OF: 1. ONE STERLING LT9500 TANDEM DUMP TRUCK AND APPURTENANT EQUIPMENT 2. ONE TORO MULTI-PRO 5700D HERBICIDE SPRAYER 3. ONE FORD F550 AND APPURTENANT EQUIPMENT AND THE TRADE IN OF: 1. ONE 1996 FORD L8000 (UNIT #519) DUMP TRUCK 2. ONE 1997 CUSHMAN (UNIT #536) HERBICIDE APPLICATOR 3. ONE 1994 FORD F350 (UNIT #459) DUMP BOX AND PLOW Motion By: Second By: WHEREAS, Each year the City Council adopts an Equipment Replacement Fund and Matrix as part of the Capital Improvement Program (CIP); and WHEREAS, The matrix identifies $205,815 for a tandem dump truck and accessories, $31,933 for an herbicide sprayer and $64,471 for a two ton truck; and WHEREAS, An analysis of each piece of equipment proposed for replacement was included in the agenda report; and WHEREAS, All bids were solicited through the State Purchasing Program; and WHEREAS, Staff is authorized to trade in one currently owned 1996 Ford L8000 (Unit #519) dump truck and purchase one Sterling L T9500 chassis from Boyer Truck for a cost not to exceed $78,714.15; and WHEREAS, Staff is authorized to purchase the appurtenant equipment ($91,732,38) and safety equipment ($3,727.50) to equip the Sterling L T9500 chassis from J-Craft for a cost not to exceed $95,159.88 and to reject the appurtenant equipment bid of $88,784,79 by Aspen Equipment as it does not meet the City's specified application rates for de-icing operations; and WHEREAS, Staff is authorized to trade in one currently owned 1997 Cushman (Unit #536) Herbicide Applicator and purchase one Toro Multi-Pro 57000 for a cost not to exceed $25,491.84; and WHEREAS, Staff is authorized to trade in one currently owned 1994 Ford 350 Dump Box and Plow (Unit #459) and purchase one Ford F550 from Elk River Ford for a cost not to exceed $34,713.66; and WHEREAS, Staff is authorized to purchase and have installed, the dump box, snow plow, related appurtenant equipment and safety equipment from Aspen Equipment for a cost not to exceed $20,488.00. R:\Council\2008 Agenda Reports\03 17 08\equipment purchase reso.doc www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Staff is authorized to trade in and purchase the above listed equipment. 3. Funds are to be drawn from the Equipment Replacement Fund and Matrix Account #410-43100- 580 ($229,075.69) and #410-45200-580 ($25,491.84). 4. All pieces of equipment shall be purchased for a total price not to exceed $254,567.53. PASSED AND ADOPTED THIS 17TH DAY OF MARCH 2008. YES NO Haugen Haugen Erickson Erickson Hedberg Hedberg LeMair LeMair Millar Millar Frank Boyles, City Manager R:\Council\2008 Agenda Reports\03 17 08\equipment purchase reso.doc EQUIPMENT NEED ANALYSIS Equipment: Year: 1996 Ford L8000 Dump Truck (Unit #519) Mileage/Hours: 120,672 I. Refurbishing Analysis: The 1996 Ford L8000 needs $33,476.72 -worth of repairs to continue to be operational. The engine and drive train currently have accumulated 120,672 miles with typical replacement of 120,000 miles. As discussed in the February 4, 2008, City Council report on equipment replacement relating to dump trucks, extending the life ofthese types of vehicles can result in hidden issues. After spending thousands of dollars to replace engines, transmissions and drive trains, the vehicle itself continues to age. This can result in uncertainties as to the condition ofthe frames, hydraulics, electronic components and rear ends. Additionally, the resale value continues to decrease. Due to the age of the truck it can not be modified with new technology needed to meet today's standards on environmental concerns for winter applications and engine emissions. II. Lease/Rental Options: The City retains its dump trucks for 12 to 14 years or 120,000 miles. If the City entered into a lease option on its dump trucks, it would result in a long term lease. Long term leases cost more than an out right purchase. III. Zero Value Operation: This truck has met its life expectancy for its intended purpose. Costly repairs of $33,476.72 are needed to keep this machine functional. At this time the City will receive a trade-in value of$18,800. By operating this vehicle to zero value, we would lose $33,476.72 (repairs) and $18,800 (trade-in value) for a total of $52,276.72. IV. Alternative Fuel Analvsis: The proposed Sterling L T9500 is equipped with a Caterpillar C13 - 350 H.P. diesel engine capable of operating on B-5 diesel fuel. The engine is low emissions, tier 3 compliant. V. Equipment Utilization: The trucks are utilized by all Public Works Maintenance Divisions on a daily basis as outlined in this report. As with all equipment that experiences heavy utilization, maintenance staff employees meet daily to assure that all equipment is scheduled to their maximum potential. R:\Council\2008 Agenda Reports\03 17 08\equipment needs analysis Unit 519.doc Created on 3/10/20087:55:00 AM 1 VI. Equipment Partnership: With the heavy utilization of dump trucks needed by the City of Prior Lake Maintenance Divisions and the timing of the need occurring at the same time (Le. snow removal operations), partnerships with other organizations is not a viable option. VII. Used Equipment Options: At the February 4,2008, City Council meeting, staff presented a report on equipment replacement and acquisition strategies. Outlined in that report "new vs. used" high lighted several issues related to buying used dump trucks. The issues to purchasing a used dump truck are as follows: 1. Unless the truck was originally set up for plowing and snow removal operations, the frame and springs will not meet specifications needed to carry the heavier attachments. 2. Technology wise, a substantial amount of money is needed to upgrade these vehicles to meet today's environmental concerns. 3. The available trucks that meet the City's needs typically have substantial mileage; in most cases, 90,000. 4. Because of the amount of money spent on used trucks competitive bidding laws become an issue. R:\Council\2008 Agenda Reports\03 17 08\equipment needs analysis Unit 519.doc Created on 3/10/20087:55:00 AM 2 EQUIPMENT NEED ANALYSIS Equipment: Cushman Herbicide Applicator (Unit #536) Year: 1997 MileagelHours: 1,800 I. Refurbishing Analysis: The 1997 Cushman Herbicide Applicator does not require many repairs. The purpose of replacing this piece of equipment is for environmental issues and operator safety. II. Lease/Rental Options: The City retains its herbicide applications for 10 years. This would result in exercising a long term lease. Long term leases cost more money than an out right purchase. This piece of equipment is utilized spring, summer and fall months for turf maintenance and weed control. Renting this machine with its anticipated heavy utilization is not cost effective. III. Zero Value Operation: Based on the regulations developed by the Minnesota Department of Agriculture on herbicide application, this machine does not have the technology to safely meet their criteria. The purchase of an updated piece of equipment is necessary. IV. Alternative Fuel Analysis: The proposed replacement Kubota Herbicide sprayer is a diesel engine and will run on B5 diesel fuel. There are not other alternative fuel options to replace this piece of equipment. V. Equipment Utilization: This piece of equipment is a specialized machine for application of herbicides only. There are no other functions that this herbicide applicator can be utilized for. Not replacing this machine would result in poor turf quality, particularly on our athletic fields. Poor turf quality would sacrifice safety issues to the park users. VI. Equipment Partnership: Because the City utilizes this machine during peak times during the turf growing season, it is not viable to partner with another agency on this equipment. VII. Used Equipment Options: Because this piece of equipment is specialized its average use is only 180 hours per year. Staff recommends purchasing a used machine to replace our currently owned herbicide sprayer. R:\Council\2008 Agenda Reports\03 17 08\equipment needs analyis Unit 536.doc Created on 3/10/2008 8:08:00 AM EQUIPMENT NEED ANALYSIS Equipment: Year: 1994 1994 Ford F350 (Unit #459) Mileage/Hours: 98,819 I. Refurbishing Analysis: The 1994 Ford F350 needs $17,375.01 in repairs to continue to be operational. The engine and drive train currently have accumulated 98,819 miles. To refurbish and extend the life of this vehicle would cost $17,375.01 in parts and labor. II. Lease/Rental Options: The City retains its one ton and two ton trucks for 10 years or 100,000 miles. If the City entered into a lease option on trucks, it would result in a long term lease. Long term leases cost more than an out right purchase. III. Zero Value Operation: This truck has met its life expectancy for its intended purpose. Repairs of$17,375.01 are needed to keep this truck operational. In its present condition, it has been utilized for light duty operations only, resulting in a vehicle shortage for its original intended purpose. At this time, the City will receive a trade-in value of $2,200.00. To repair and refurbish this vehicle to its intended functional use would lose $17,375.01 (repairs) and $2,200.00 (trade-in value) for a total of$19,375.01. IV. Alternative Fuel Analysis: The proposed F550 is equipped with a diesel engine capable of operating on B5 diesel fuel. The engine is emissions compliant. V. Equipment Utilization: The trucks are utilized by all Public Works Maintenance Divisions on a daily basis as outlined in this report. Maintenance staff employees meet daily to assure that all the trucks are scheduled to their maximum potential. VI. Equipment Partnership: All City owned trucks are utilized on a daily basis by the Public Works Maintenance Division employees. Partnerships with other organizations with trucks are not a viable option. VII. Used Equipment Options: As outlined in the February 4, 2008, City Council report on Equipment Replacement and Acquisition strategies, purchasing used one and two ton trucks with dump bodies is not a cost effective option. R:\Council\2008 Agenda Reports\03 17 08\equipment needs analysis Unit 459.doc Created on 3/10/2008 9:53:00 AM