HomeMy WebLinkAbout5F - Replacement of Vehicles
MEETING DATE:
AGENDA #:
PREPARED BY:
PRESENTER:
AGENDA ITEM:
DISCUSSION:
4646 Dakota Street SE
Prior Lake. MN 55372
CITY COUNCIL AGENDA REPORT
August 16, 2010
5F
AI Friedges, Parks and Fleet Supervisor
AI Friedges
Consider Approval of a Resolution Authorizing the Replacement of a
2000 F350 Utility Truck and a 2003 Ford Expedition Fire Truck
Introduction
The purpose of this agenda is to seek City Council approval for the
replacement of the above listed equipment.
Historv
As part of the Capital Improvement Program (CIP), the City Council adopts
an Equipment Replacement Plan each year. The purpose of this Plan is to
identify and program 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 Plan are
subject to Council approval. For 2010 the Plan programmed:
1. $86,327.00 for a one ton chassis 4X4 truck with utility box (Street
and Utility Department)
2. $40,000.00 for a sport utility vehicle (Fire Department)
Annually, City staff also evaluates any vehicles that can have their useful
lives extended. As part of the 2011-2015 CIP, City Staff recommended that
five major pieces of equipment scheduled for replacement in 2010 be
extended out to future years based on current condition and use. The
2000 F350 Utility Truck and 2003 Ford Expedition Fire Truck were not
extended based on current use and condition.
The Utility Truck is in need of major repairs and because it has a gas
engine, it is expected that additional engine repairs will continue as the
average life of these engines under the specific work conditions is 10
years.
The Fire Truck is a first responder vehicle and while it can still be retained
for use by the City in another capacity, Staff recommends it be replaced as
a fire vehicle. Currently, the City replaces Police squad cars between
75,000 and 80,000 miles. This vehicle is a critical first response unit and
staff believes it has exceeded its threshold of emergency reliability and
therefore should be replaced.
Current Circumstances
Based on condition and need for repairs, City staff is recommending the
following equipment be replaced in 2010:
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1. F350 Ford 4X4 (1 Ton) Utility Truck (Unit #750)
The Streets and Utilities Division of Public Works currently utilizes a F350
4X4 truck that is equipped with a utility box for sign repair and replacement,
re-constructing manholes, pulling lift station pumps, traffic control, hydrant
repair, catch basin repairs and gate valve repairs. Staff recommends the
trade-in of this vehicle and proposes to purchase a one-ton chassis diesel
4X4 equipped with a utility box and appurtenant equipment. The new
vehicle can also be used for water system pump removal. Currently, the
City utilizes contractors for this function at a very high cost.
The existing 2000 F350 Ford 4X4 (one-ton) utility truck is 10 years old and
has accumulated 96,820 miles. This vehicle requires $5,544.88 of repairs
in the near future to continue use.
The attached detailed vehicle analysis contains additional information on
the recommendation for replacement. Based on that analysis, Staff
believes the purchase of a new one-ton truck is the most cost-effective
option for the City. The following cost analysis was completed based on
actual price information:
Option Initial Cost Trade PV Life Annual Annual Total
In Future Expect Maint RR (%) Annual
Trade Cost
I New $77,815.49 $4,300 $4,000 12 $1,670 2 $8,219
I Used" $81,824.84 $4,300 $4,000 10 $1,670 2 $9,910
I Rebuild $62,753.00 $0 $2,500 6 $2,000 2 $12,928
I Repair"" $5,544.88 $0 $500 2 $5,500"" 2 $8,534
*2008 F350 17k miles
""Make current repairs and drive to $0 value, includes 4 month delay for replacement with average
number of contractor service calls assumed and rentals needed over that period in annualized cost.
Based on the detailed replacement analysis and the cost analysis, the least
costly option for the City is replacement of the existing F350 Utility Truck
with a new truck.
In accordance with the City's purchasing policy, quotes were solicited
through the State of Minnesota Purchasing Program for Ford, General
Motors (GM) and Chrysler. Because of non-availability, Polar Chevrolet
(representing GM) did not respond with a bid. Elk River Ford/Dodge
supplied a bid through the State of Minnesota Purchasing Program for Ford
only. Additional non-state quotes were also solicited for Ford, Chrysler
and GM trucks. Based upon lack of availability and price competitiveness
with the Ford F350, no quotes were supplied by the Chrysler or GM dealers
contacted.
The low quote amount of $27,881.48 was submitted by Wolf Motors. Staff
is recommending this vendor. The bid/quotes were received as follows:
Price Comparison for One Ton Chassis 4X4 Truck
I Wolf Motors Elk River Ford
I State Bid No Yes
I Make I Model Ford F-350 Ford F-350
I Price $30,292.00 $30,443.00
I Trade-in Value ($ 4,300.00) ($ 4,000.00)
I Sub-Total $ 25,992.00 $ 26,443.00
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I Tax (6.5%)
I License Fees
I Total
$ 1,689.48
$ 200.00
$27,881.48
$ 1,718.80
$ 200.00
$28,361.80
In addition to the truck chassis, quotes were received for the utility box and
appurtenant equipment and are as follows:
Price Comparison for Utility Box & Appurtenant Equipment
Vendor Berts Aspen
Fiberglass Service Body $6,383.00 $6,743.00
I Delivery $373.50 N/C
I Compartments $3,396.00 $2,484.00 I
I Service Body Options $4.177.00 I $4,306.00 I
I Paint $1,075.00 I $857.00 I
I Receiver Hitch $252.00 I $554.00 I
I Crane $13,063.00 I $12,723.00 I
I Power Inverter $1.050.00 I $2,967.00 I
I VMAC Air $10,837.00 I $11,079.00 I
I LED Warning Lights $1,030.00 I $1,280.00 I
I Sub-total $41,636.50 I $42,993.00 I
I Tax $2,862.51 i $2,955.77 I
I Total $44,499.01 I $45,948.77 I
ABM
$5,730.00
N/C I
$2,661.00 I
$3.708.00 I
$1,911.00 I
$483.00 I
$13,359.00
$1,928.00
$12,410.00
$1,116.00
$43,306.00
$2,977.29
$46,283.29 I
The following safety equipment with a total cost listed will be installed in the
proposed truck:
litem
I Air impact, Flashlight & LED Mini-Light Bar
Cost
I
$1,135 I
The total cost for the truck chassis, utility box and appurtenant equipment is
$73,515.49. The Equipment Plan had $86,327.00 programmed for this
purchase.
2. Ford Expedition (Unit #9200)
The Fire Department currently utilizes the Ford Expedition for their Fire
Chief and Assistant Fire Chiefs as a first responder vehicle. This vehicle is
equipped with all the necessary appurtenant equipment needed for
emergency services.
The existing 2003 Ford Expedition is seven years old and has accumulated
105,118 miles. Although this vehicle is no longer reliable for first responder
emergency response, staff recommends retaining the Expedition to be
utilized by the Public Works Department during the summer months for the
following reasons:
· From May through September, the Public Works Department
does not have sufficient vehicle coverage. Public Works
Supervisors do not have access to vehicles for site visits or
equipment transport.
· In the past, we retained all of the Ford Crown Victoria squad cars
that were replaced by new squads and utilized them during the
summer months. These old squad cars were used for
transporting seasonal staff to their job sites and then later sold at
an auction after the seasonal jobs were completed. Although the
use of the Crown Victorias proved to be very useful, in 2008 the
Police Department began purchasing Dodge Chargers. If
maintained well, the resale for the Dodge Chargers will remain
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much higher than the Ford Crown Victorias. Transporting
seasonal staff and maintenance equipment in these vehicles all
summer substantially depreciates the value. To receive the most
value for the Dodge Chargers, they will be immediately sold. By
not retaining this vehicle during the summer months as we have
in the past, it contributes to the significant shortage of vehicles.
Based on equipment needs, budget and required towing capacity, the City
pursued a Ford Explorer (V8) (smaller than the Expedition and more fuel
efficient) and Jeep Grand Cherokee (V8) as suitable replacement vehicles.
The attached detailed vehicle analysis contains additional information.
Based on that analysis, Staff believes the purchase of a new truck and
retaining the existing truck for a period of four more years is the most cost
effective option for the City. The following cost analysis was completed:
Option Initial Trade PV Life Annual Annual Total
Cost In Future Expect Maint RR(%) Annual
Trade Cost
I New wI Trade I $33,123.02 $4,000 $4,000 8 I $875 2 $5,101
I Used' wI Trade I $34,072.00 I $4,000 I $4,000 I 7 I $875 I 2 $5,827
I New" Retain Old I $33,123.02 I $1,000 I $800 I 12 I $1,000 I 2 $3,761
'2008 Ford Explorer V8 (red) 16k miles
"Keep truck for 12 years with Public Works Utilization for last four years
In accordance with City purchasing policy, bids were solicited through the
State of Minnesota Purchasing Program for Ford and Jeep. Elk River Ford
Dodge represents both Ford and Jeep and submitted only a Ford bid as it
was the most affordable option. Non-state bid quotes were also solicited.
Chrysler/Jeep Dealers noted that they could not provide a price lower than
the State-Bid for the Jeep/Grand Cherokee or the Ford Explorer and
therefore did not provide a quote. Wolf Motors representing Ford provided
a non-State Bid quote and was the lowest.
The low quote amount of $25,576.00 was submitted by Wolf Motors. Staff
is recommending this vendor. The bids/quotes were received as follows:
2010 Ford Explorer V8
I
State Bid
Make I Model
Price
Tax
I License Fees
I Total
Wolf Motors
No
Ford Explorer
$25,376.00
I N/C
I $ 200.00
I $25,576.00
Elk River Ford
Yes
Ford Explorer
$25,404.40
N/C
I $ 200.00
I $25,604.40
Quotes were received for a light bar, traffic advisory siren, controls and
related equipment. Staff recommends proceeding with the low bid of
$6,047.02 which was received from Northern Safety Technology, Inc.
, Northern Safety
Technology, Inc.
Emergency
Automotive
Technologies, Inc.
I $6,093.15
Total
I $6,047.02
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A rear cargo storage unit, GPS unit and graphics will be installed on the
proposed vehicle with an estimated cost not to exceed $1,500.00.
The total cost for the truck and related equipment is $33,123.02. The
Equipment Plan had $40,000.00 programmed for this purchase.
Conclusion
Based on the City's detailed vehicle needs and financial analysis, Staff is
recommending the purchase of a New 2010 F350 Utility Truck and a New
2010 Ford Explorer Fire Truck and appurtenant equipment from the above-
listed, low-quote venders.
ISSUES:
Vehicle availability from General Motors and Chrysler limited the City's
options for replacement. The State Bid has the same vendor for Ford and
Chrysler options which results in only one bid from this vendor depending
on which is the cheapest. In the case of the Utility Truck, the GM dealer
noted that they could not guarantee a vehicle for the State Bid price and
therefore did not submit a quote.
For non-State Bid quotes, it was noted to the City that availability and
inability to beat the State Bid or Ford's prices for these vehicle classes was
the reason for not to submitting quotes.
In both cases, the low mileage used options were not as cost effective as
new purchases. This is due primarily to the fact that the used options are
not base vehicles and have substantial upgrades thus increasing costs.
Staff evaluated 98 used one-ton trucks and 189 used Explorers and Jeeps.
The current State Bid is expected to expire this month for these vehicles
and will not reopen until January. The Ford Dealers have indicated to the
City that they expect their vehicle costs to rise by $3,000-$5,000 for the
next bid which will also increase non-state bid costs.
If the City were to wait for the next State Bid to see if prices from Chrysler
and GM could be obtained, most likely the result would be higher costs.
Staff anticipates that under the aforementioned scenario, other alternatives
to purchasing new may be the most cost effective replacement options for
these vehicles.
FINANCIAL
IMPACT:
The 2010 Equipment Plan portion of the CIP had $126,327.00 programmed
for the purchases of equipment as outlined in this report. The total cost of
the recommended equipment is $106,638.51 which is $19,688.49 less than
originally programmed. The funds will be drawn from the Revolving
Equipment Fund.
A financial analysis of several alternatives yielded that the lowest annual
cost to taxpayers is achieved by purchasing new vehicles for replacement
at this time.
ALTERNATIVES: The alternatives are as follows:
1. Approve a resolution authorizing the purchase of the proposed
equipment and trade-in of the Utility Truck 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.
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RECOMMENDED Alternative #1.
MOTION:
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4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 1 a-xxx
A RESOLUTION AUTHORIZING REPLACEMENT OF 2000 F350 UTILITY TRUCK (UNIT# 750) AND
2003 FORD EXPEDITION (UNIT# 9200)
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
Motion By:
Second By:
Each year the City Council adopts an Equipment Replacement Plan as part of the Capital
Improvement Program (CIP); and
The 2010 Equipment Replacement Plan contemplates the replacement of:
1. One 2000 Ford F-350 Utility Truck (Unit #750)
2. One 2003 Ford Expedition (Unit #9200)
The 2010 Equipment Replacement Plan programmed the following purchases:
1. $86,327.00 for a one ton chassis 4X4 truck with utility box (Street and Utility
Department)
2. $40,000.00 for a sport utility vehicle (Fire Department)
A detailed needs and financial analysis of each piece of equipment proposed for
replacement has been completed and was included in the agenda report; and
Quotes were received through the State Purchasing Program and from non-state bid
vendors to ensure the lowest prices; and
Staff is authorized to trade-in one currently owned 2000 Ford F-350 Utility Truck (Unit
#750); and
Staff is authorized to retain the 2000 Ford Expedition to be utilized by the Public Works
Department; and
Staff is authorized to purchase one 2011 Ford F-350 with utility box and appurtenant
equipment for a cost not to exceed $73,515.49; and
Staff is authorized to purchase one 2010 Ford Explorer and appurtenant equipment for a
cost not to exceed $33,123.02.
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 following equipment:
a. Trade in one 2000 Ford F-350 4X4 Utility Truck (Unit #750)
GIAGENDA REPORTS AND RESOLUTIONS\2010\ 816 Equipment Purchase Resolution 81610
b. Purchase one Ford F-350 4X4 with utility box and appurtenant equipment for a cost not to
exceed $73,515.49 from Wolf Motors ($27,881.48), Bert's Equipment ($44,499.01) and
appurtenant equipment ($1,135).
c. Purchase one 2010 Ford Explorer and appurtenant equipment for a cost not to exceed
$33,123.02 from Wolf Motors ($25,576.00), Northern Safety Technology, Inc. ($6,047.02)
and appurtenant equipment ($1,500.00).
d. All pieces of equipment shall be purchased for a total price not to exceed $106,638.51.
3. Funds will be drawn from the Revolving Equipment Fund. A total of $73,515.49 from account
#410-43100-580 and a total of $33,123.02 from Account # 410-42200-580.
PASSED AND ADOPTED THIS 16th DAY OF AUGUST, 2010.
YES
NO
Myser
Erickson
Hedberg
Keeney
Millar
Myser
Erickson
Hedberg
Keeney
Millar
Frank Boyles, City Manager
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EQUIPMENT NEED ANALYSIS
Equipment:
Year: 2000
Ford F-350 (Unit #750)
Mileage/Hours: 96,820
I. Refurbishinl! Analvsis:
The 2000 Ford F-350 4X4 utility truck needs $5,544.88 in repairs to be retained and operational for its intended
use - see below for reference. These repairs do not take into account the potential engine transmission and
drive train failures and expenses that may occur if we retain this vehicle. The current repairs are only expected
to extend the life of this vehicle about 2 years. Currently this truck has accumulated 96,820 miles and the life
expectancy is ten years or 100,000 miles for a gas engine utility truck. To refurbish and extend the life
expectancy is not effective.
Summary of Needed Repairs for the Existing Ford F350 Year 2000
Repairs Cost for Projected Cost for Grand Total
Needed Repairs Labor Labor Repairs &
Labor
I Front u-joints $98.62 2 hours I $60 $158.62
I 4X4 Hubs $440.58 2 hours I $60 $500.58
Stabilizer & $130.84 2 hours $60 $190.84
Bushings
I Tie Rod Ends I $464.58 I 3 hours I $90 I $554.58
4X4 Seals & 0- $224.00 2 hours $60 $284.00
rings
Rear Leaf $800.93 6 hours $180 $980.93
Springs Weak
Rear Pads & $205.00 2 hours $60 $265.00
Rotors
I Shifter Tube I $69.40 I 3 hours I $90 I $159.40
I Ball Joints I $227.79 I 3 hours I $90 I $317.79
I Front Tires I $203.14 I I hour I $30 I $233.14
I Seat Repair I $200.00 I None (included) I $0 I $200.00
I Box Repair I $1,700.00 I In house Repair I $0 I $1,700.00
I Totals I $4,764.88 I 26 hours 1$780 I $5,544.88
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II. Lease/Rental Ootions:
The City retains this type of vehicle with gas engines for ten years or 100,000 miles. If the City entered into a
lease option on this utility truck, it would result in a long term lease. Long term leases cost more than a
purchase.
III. Zero Value Ooeration:
This truck has met its life expectancy for its intended purpose. Repairs of$5,544.88 are needed to keep this
truck operational. At this time, the City will receive a trade-in value of $4,300. To repair this vehicle to its
intended functional use would lose $5,544.88 and $4,300 (trade-in value) for a total of$9,844.88. In addition to
this cost retaining this vehicle to a point where it no longer functions could result in additional costs for rentals
as this vehicle is currently equipped with a cane and sign equipment that no existing vehicle could be utilized
for. With a replacement period of about 4 months this could result in about $6,000 of rental and contractor
needed services should the truck become unavailable for that period depending on the time of year.
IV. Alternative Fuel Analvsis:
The proposed Ford F350 is equipped with a diesel engine capable of operating on B-20 diesel fuel. The engine
is low emissions and is US EPA compliant. The existing truck is gasoline.
V. Eauioment Utilization:
This vehicle will predominantly be utilized by the Streets and Utilities Division of Public Works as outlined in
this report. Maintenance staff foreman meet daily to assure that all vehicles and equipment are schedule to their
maximum potential.
VI. Eauioment Partnershio:
All City owned trucks are utilized on a daily basis by Public Works Maintenance Divisions employees.
Partnerships with other organizations with trucks are not a viable option.
VII. Used Eauioment Ootions:
Staff has researched available vehicles and the best used truck is a 2008 F-350 with 17k miles. This truck
would need a utility box and appurtenant equipment as the chassis does not currently have this equipment.
Staff evaluated 98 used one ton trucks. Only 4 were available with less than
VIII. Best Cost Ootion:
Based on the available options Staff has completed the following financial analysis to determine the most cost
effective replacement option:
Option
Initial
Cost
Trade
In
Life
Expect
Annual
Maint
Annual
RR
(%)
21
21
21
21
Total
Annual
Cost
$8,219
$9,910
$12,928
$8,534
I New 1 $77,815.49 1 $4,300
I Used* I $81,824.84 I
1 Rebuild 1 $62,753.00 I
I Repair** 1 $5,544.88 1
*2008 F350 17k miles
**Make current repairs and drive to $0 value, includes 4 month delay for replacement with
average number of contractor service calls assumed and rentals needed over that period annualized
yearly.
I
$4,300 1
$0 I
$0 1
PV
Future
Trade
$4,000
$4,000
$2,500 1
$500 1
12 1
101
61
21
$1,670
$1,670
$2,000
$5,500**
Recommendation: Based on the criteria above staff believes the best option available at this time is to trade
in the existing truck and purchase a new truck and equipment.
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EQUIPMENT NEED ANALYSIS
Equipment: Ford Expedition (Unit #9200)
Year: 2003 Mileage/Hours: 105,118
I. Refurbishinl! Analvsis:
The 2003 Ford Expedition is seven years old and has accumulated 105, I 18 miles. It is no longer reliable as a
first response vehicle for emergency situations. Because emergency vehicles and equipment are relied upon and
expected to arrive at every crisis without break downs, the refurbishing criteria is much more in-depth
compared to typical maintenance on standard equipment and vehicles. Engines, drive-trains, transfer cases,
suspensions and appurtenant equipped emergency equipment must be refurbished, as well. With the cost
incurred in this type of restoration, it is more cost effective to purchase new.
II. Lease/Rental Ootions:
No lease or rental options are available for fire and rescue equipment.
III. Zero Value Ooeration:
This vehicle has met its life expectancy for its intended use. To continue to receive value from its initial
purchase, staff recommends utilizing the vehicle in the Public Works Department.
IV. Alternative Fuel Analvsis:
This vehicle is equipped with a gas engine and is E85 Compatible.
V. Eouioment Utilization:
The Ford Expedition has been utilized by the Fire Chief and Assistant Fire Chief as a first response vehicle.
This vehicle is seven years old and has accumulated 105, I 18 miles. To maximize the utilization ofthis vehicle,
the supervisors in the Public Works Department will utilize this vehicle for transportation, traffic control and
transporting seasonal staff during the summer months in lieu of employees using their personal vehicles.
VI. Eouioment Partnershio:
All City owned trucks are utilized on a daily basis by Public Works Maintenance Divisions employees.
Partnerships with other organizations with trucks are not a viable option.
VII. Used Eouioment Ootions:
Staff has researched available used vehicles and the best option meeting the Fire Departments needs is a 2007
Ford Explorer V8 with only 16k miles for $25,000. It is red and will need to be equipped. Staff evaluated 189
Ford Explorers and Jeep Grand Cherokees to determine the best used option.
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VIII. Best Cost Ootion Analvsis:
Option
Initial Cost
Trade In
PV Future
Trade
New $33,123.02 $4,000 $4,000
wi Trade
Used* wI $34,072.00 $4,000 $4,000
Trade
1 New** $33,123.02 I $1,0001 $800
*2007 Ford Explorer V8 (red) 16k miles
**Keep truck for 12 years with Public Works Utilization
Life Annual Annual Total
Expect Maint RR(%) Annual
Cost
8 $875 2 $5,101
7 $875 2 $5,827
12 1 $1,000 2 $3,761
Recommendation: Based on the options evaluated at this time Staff recommends retaining the
Expedition for Public Works Department use and purchase of a new 2011 V8 Ford Explorer as a
replacement vehicle.
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