HomeMy WebLinkAbout9A1 - Purchase 5 Ton Truck
MEETING DATE:
AGENDA #
PREPARED BY:
REVIEWED BY:
AGENDA ITEM:
DISCUSSION:
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CITY COUNCIL AGENDA REPORT
FEBRUARY 5, 2001
9A1
DOUG HARTMAN, PUBLIC WORKS SUPERVISOR
FRANK BOYLES, CITY MANAGER
CONSIDER APPROVAL OF RESOLUTION 01-XX 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 storm 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 t~073 Adelmann 51. 5.E., Prior Lake, Minnesota 55372 / Ph, (952) 440-9675 / Fax (952) 440-9678
AN EQUAL OPPORTUNITY EMPLOYER
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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
EnJ!ine Cat 3126, 275 H.P, DT530E, 275 H.P
EnJ!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
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
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
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
t- 7'
train, brake and steering repairs. The data suggests that after eight years numerous
and major repairs occur and the lifetime and lifecycle costs increase. (See the
attached document entitled "Life Cycle Costs".)
Staff has also researched ~opti6ns 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.
Staff recommends alternative number one,
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RESOLUTION 01-xx
~llVNESO~~
LUTION APPROVING THE PURCHASE OF ONE STERLING 5-TON, SINGLE-
AXLE CAB CHASSIS TRUCK AND J-CRAFT PLOW AND SANDING EQUIPMENT
MOTION BY:
WHEREAS,
WHEREAS,
WHEREAS,
SECOND BY:
The 2001 Equipment Replacement Fund and Matrix identifies the purchase of one
replacement 5-ton, single-axle plow truck; and
The truck being replaced is Truck 464, a 1988 International; and
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
Mpls, MN Mpls, MN
Manufacturer Sterling International
Model L-8500 2654
En~ine 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 tOi~effJ*delmann 51. 5,E" Prior Lake, Minnesota 55372 / Ph, (952) 440-9675 / Fax (952) 440-9678
AN EQUAL OPPORTUNITY EMPLOYER
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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 ofTruck#464,the 1988 International Truck.
AND FURTHER, that the funds for such purchase shall be drawn from the Equipment
Replacement Fund.
Passed this 5th day of February 2001,
YES
NO
Mader Mader
Ericson Ericson
Gundlach Gundlach
Petersen Petersen
Zieska Zieska
{ Seal }
City Manager
City of Prior Lake
5 ton single axle
LIFE CYCLE COST
Unit No. 464
Date: 01/25/01
For Year Ending:
Lifetime as of 01/25/01
1.
Vehicle Description:
1988 International 5~Ton; Single-Axle Dump Truck
2. Attachments: Dump Box. Plow and Wing
3.
Original Purchase Price:
(incl. all attachments)
$ 29.000.00
(In 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)
t) 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. Comments: No data available prior to 1989.
5 ton single axle
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MEMORANDUM
DATE:
January 31, 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