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Home My WebLink About8C1 - Purchase Snow Plow MEETING DATE: AGENDA # PREP ARED BY: REVIEWED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT FEBRUARY 20, 2001 8C 1 DOUG HARTMAN, PUBLIC WORKS SUPERVISOR "'1 FRANK BOYLES, CITY MANAGER /..,- CONSIDER APPROVAL OF RESOLUTION 01-'& AUTHORIZING THE PURCHASE OF ONE, 5- TON SINGLE-AXLE CAB AND CHASSIS TRUCK AND APPURTENANT EQUIPMENT FOR PUBLIC WORKS MAINTENANCE THROUGH THE STATE COOPERATIVE PURCHASING PROGRAM. Historv The purpose of this agenda item is to authorize the purchase of a replacement, 5-ton single-axle, cab and chassis truck with front, wing and underbody plows, box and sander, through two contracts under the Minnesota Cooperative Purchasing Program. One contract is for the cab/chassis, the other is for the box, plows, wing and sander. Current Circumstances The Public Works maintenance department currently utilizes seven 5-ton single axle trucks year round. These trucks are used by all of the following maintenance divisions: street, sewer, water and park maintenance. Each division will utilize these vehicles to accomplish snowplowing, mixing sand/salt, hauling and spreading of sand/salt and gravel, hauling of street sweepings, ball diamond field lime, black dirt, unsuitable soils from utility breaks and replacement soils, debris such as concrete, blacktop, tree and stonn debris, plus other maintenance and construction related tasks. Yearly, as part of the Capital Improvement Program the City adopts an Equipment Replacement Fund and Matrix. The purpose of this Equipment Replacement Fund and Matrix is to identify and budget for equipment and vehicles that need replacement due to age and wear, or to provide for new equipment that needs to be purchased. All equipment identified in the matrix is subject to Council approval. The matrix identifies $103,971.00 for this item. The actual cost for this truck and equipment after trade-in is $94,084.01. This is an aggregate total involving the two contracts under the State Cooperative Purchasing Program. Issues Weare recommending the replacement of Truck #464, a 1988 International Truck. The equipment matrix identified its replacement last year; however, Truck #518, a 1984 International, was traded instead due to its condition. The 1984 vehicle will be disposed of with receipt of the replacement vehicle in February. Typically, the engines, transmissions and drive trains on 5-ton plow trucks are capable of operating 70,000 to 100,000 miles before needing major repairs and overhauls. Truck #464 is a twelve-year-old vehicle which has accrued 79,000 miles. This 5 ton single a.l<!l: J_ 1/073 Adelmann St. S.E., Prior Lake, Minnesota 55372 / Ph. (952) 440-9675 / Fax (952) 440-9678 AN EQUAL OPPORTUNITY EMPLOYER "_.00,- T T ''TIr vehicle was purchased before we had indoor storage and consequently has considerable rust through. It needs approximately $17,500.00 of work to bring it to a dependable condition. (See attached evaluation from Fleet Maintenance Coordinator. ) The State Cooperative Purchasing Program has prepared specifications and solicited bids for 5-ton, single-axle body and chassis. The low bid, which we are recommending, was submitted by Boyer Sterling Trucks of Minneapolis. The bids are shown as follows: Vendor Boyer Sterling Trucks North Star International Mpls, MN Mpls, MN Manufacturer Sterling International Model L-8500 2654 En~ine Cat 3126, 275 H.P. DT530E, 275 H.P En2ine Warranty 2 years, 250,000 miles 3 years, 150,000 miles Base Price $30,195.00 $34,300.00 Options $20,457.00 $16,646.00 Subtotal $50,652.00 $50,946.00 Less Trade-In ($10,400.00) ($10,000.00) Subtotal $40,252.00 $40,946.00 Tax $ 2,616.38 $ 2,661.49 Total $42,868.38 $43,607.49 Two other vendors of comparable sized trucks, Peterbuilt and Western Star, provided base bids of $39,620.00 and $36,900.00 respectively. In addition to having higher base bids, these two manufacturers' trucks are not commonly used for snowplowing; and therefore, are not designed appropriately for a snow plow, wing, and the associated electrical and hydraulic system components. A bid was also prepared for truck bodies and snowplow equipment. The low bid is submitted by J-Craft, Inc., of Kimball, Minnesota. The following bids reflect a total price for box, front plow wing and underbody plow, sander and strobe lights. Vendor J-Craft, Inc. Crysteel Kimball, MN Fridley, MN InstalIed Equipment Total Price $47,902.00 $48,045.57 Tax $3,113.63 $3.122.96 Delivery $200.00 $200.00 Total $51,215.63 $51,368.53 COST BENEFIT ANALYSIS: The main goal of a replacement policy is to lower the equipment lifetime costs. With the age, amount of hours, and wear and tear on Truck #464, the 1988 International, costly repairs and downtime have occurred. 5 ton single axle Staff has investigated the limited maintenance records we have for the truck being considered for replacement. One way to analyze equipment replacement is to review its repair history. This truck, in the eight years from 1989 through 1996, was in the shop for repairs eight times. In the four-year period from 1997 through 2000, it was in for repairs 29 times, four of which were significant engine, drive 2 ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: 5 ton single axle '-1 train, brake and steering repairs. The data suggests that after eight years numerous and major repairs occur and the lifetime and lifecyc1e costs increase. (See the attached document entitled "Life Cycle Costs".) Staff has also researched options to replacing equipment versus leasing or sub- contracting as outlined in the "Evaluation of Street Snowplowing Equipment Alternatives", at the January 8, 2001 workshop session with the City Council. At this point, we feel it is necessary to replace currently owned equipment to maintain the current level of service, but any additional major equipment needs in the future may have to be addressed by sub-contracting. By purchasing another Sterling Truck and J-Craft equipment, the City can economize on our inventory of parts. (Our last two truck purchases were Sterling trucks with J-Craft equipment.) Plows and sanders are interchangeable from truck to truck and drivers are more familiar with like controls of the equipment. The familiarity with trucks can be a significant safety concern in snowplowing operations. The Sterling and J-Craft equipment are less expensive and staff are familiar with these trucks, so our recommendation is to purchase the Sterling truck and J-Craft equipment at this time. If approved now, the truck would be ready for service approximately by July 2001. We will retain truck 464 until the new replacement arrives. The alternatives are as follows: 1. Approve Resolution Ol-XX authorizing the trade-in of Truck #464, the 1988 International, the purchase of the Sterling cab and chassis from Boyer Sterling Trucks, and the purchase of the plow/sand equipment from J-Craft Equipment. 2. Table this item for a specific reason. 3. Deny this agenda item for a specific reason. 3 1 ,. I ~J.lVNESO~~ LUTION APPROVING THE PURCHASE OF ONE STERLING 5- TON, SINGLE- AXLE CAB CHASSIS TRUCK AND J-CRAFT PLOW AND SANDING EQUIPMENT J\, RESOLUTION 01-ri'r MOTION BY: SECOND BY: Yt WHEREAS, The 2001 Equipment Replacement Fund and Matrix identifies the purchase of one replacement 5-ton, single-axle plow truck; and WHEREAS, The truck being replaced is Truck 464, a 1988 International; and WHEREAS, The cab and chassis and plow/sanding equipment will be purchased through the State of Minnesota Cooperative Purchase Agreement which has prepared specifications and awarded bids to the lowest responsible bidders, Boyer Sterling Trucks and J-Craft, Inc as follows: Vendor Boyer Sterling Trucks North Star International MVls, MN Mvls, MN Manufacturer Sterling International Model L-8500 2654 En2ine Cat 3126,275 H.P. DT530E, 275 H.P En~ine Warranty 2 years, 250,000 miles 3 years, 150,000 miles Base Price $30,195.00 $34,300.00 Options $20,457.00 $16,646.00 Subtotal $50,652.00 $50,946.00 Less Trade-In ($10,400.00) ($10,000.00) Subtotal $40,252.00 $40,946.00 Tax $ 2,616.38 $ 2,661.49 Total $42,868.38 $43,607.49 Vendor J-Craft, Inc. Crysteel Kimball, MN Fridley, MN Installed Equipment Total Price $47,902.00 $48,045.57 Tax $3,113.63 $3.122.96 Delivery $200.00 $200.00 Total $51,215.63 $51,368.53 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, to approve the purchase of one 5-ton single-axle cab and chassis through the State of Minnesota Cooperative Purchasing Agreement from Boyer Sterling Trucks at a cost not to exceed $42,868.38 5 too sjucle,...axle l/IJ/,j Adelmann St. S.E., Prior Lake, Minnesota 55372 / Ph. (952) 440-9675 / Fax (952) 440-9678 AN EQUAL OPPORTUNITY EMPLOYER AND FURTHER, to approve the purchase of snowplows and appurtenant equipment for the aforementioned truck from J-Craft Incorporated at a cost not to exceed $51, 215.63. AND FURTHER, authorize the trade in of Truck #464, the 1988 International Truck. AND FURTHER, that the funds for such purchase shall be drawn from the Equipment Replacement Fund. Passed this 20th day of February 2001. YES NO Mader X Mader Ericson A Ericson A Gundlach X Gundlach Petersen X Petersen Zieska X' Zieska { Seal } City Manager City of Prior Lake 5 ton single axle If r II ,. LIFE CYCLE COST Unit No. 464 Date: 01/25/01 For Year Ending: Lifetime as of 01/25/01 1. Vehicle Description: 1988 International5-Ton, Single-Axle Dump Tmck 2. Attachments: Dump Box. Plow and Wing 3. Original Purchase Price: (inc!. all attachments) $ 29,000.00 (1n service since 8/84) 4. Resale Price: $ 10,400.00 5. Scheduled Life Expectancy: 10 Years 6. Usage Costs: a) Shop Hours: 120 b) Shop Labor Costs: $ 3.000.00 ($25/Hr. ) c) Parts/Materials: $ 2.900.00 d) Farmed Out Costs: $ 500.00 e) Insurance: $ 5.040.00 ($420.00/per year) f) Fuel Costs: $15,770.00 g) Downtime Replacement Rental: N/A h) Total Usage Costs: $27,210.00 (b+c+d+e+f+g) 7. Total Mileage or Hours: 78,851 miles 8. Depreciation (3 - 4): $18,600.00 9. Total Life Cost (6h+8): $45,810.00 10. Life Cycle Average Cost (9/7): 0.58 per mile 11. Life Cycle Average Cost for Vehicle Class: * 12. Downtime in Hours This Year: * 13. Downtime - Life of Machine: * 14. Average Downtime By Class: * *Unknown 15. Estimated Future Maintenance Expenditures (Attachments): $17,500.00 16. Conm1ents: No data available prior to 1989. 5 ton single axle MEMORANDUM DATE: February 14, 2001 TO: BUD OSMUNDSON PUBLIC WORKS DIRECTOR FROM: JON DONOVAN FLEET MAINTENANCE COORDINATOR SUBJECT: STATUS ON VEHICLE #464 1988 INTERNATIONAL MODEL 1954 DUMP TRUCK DT 466 210HP DIESEL 78,851 MILES VIN # 1HTLDTVN7JH554259 Cab & frame: Cab comers rusted through, fuel tank and supports rusting through, air tank rusting through, $2,000.00 battery box rusting through, box rusting through Box and Plow: Box stretched and rusting through, sub frame rusted through and cracked, wing plow $7,400.00 rusted through Sander: Worn out $2,200.00 Engine & drive train: Engine needs head gasket, several oil leaks, oil pan rusting through, replace clutch, $4,200.00 replace front spring assembly, exhaust rusting through, steering box bad, rebuild air compressor, replace air dryer Hydraulic tank leaks, hydraulic hoses worn out in many places $850.00 Replace drive tires $850.00 TOTAL $17,500.00 5 ton single axle If II ,.