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Home My WebLink About9B - Purchase Public Wks Trucks MEETING DATE: AGENDA # PREP ARED BY: REVIEWED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT APRIL 2, 2001 9B DOUG HARTMAN, PUBLIC WORKS SUPERVISOR BUD OSMUNDSON, PUBLIC WORKS DIRECTOR CONSIDER APPROV AL OF A RESOLUTION AUTHORIZING THE PURCHASE OF TWO VEHICLES UNDER THE STATE COOPERATIVE PURCHASING PROGRAM Historv: The City's Capital Improvement Program (C.I.P.) 2001-2005, which was adopted by the City Council on June 19, 2000, itemizes equipment to be purchased. This agenda item requests City Council approval to pl,lrchase two vehicles for the Public Warks Department. The Public Works Department is seeking to purchase a 4x4 one-ton cab-chassis with dump box and plow (replacement vehicle for Unit #542) and a 4x4 one-ton pickup with plow (new or additional vehicle). The one-ton cab-chassis with dump box will replace a 1991 4x4 one-ton cab-chassis with similar equipment. The one-ton pickup will be an additional piece of equipment to be utilized mainly in the street and utility maintenance areas for snow plowing, street patching, towing and other day-to-day routine duties. Current Circumstances: Yearly, as part of the C.I.P., 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 to be purchased. All equipment identified in the matrix is subject to City Council approval. Issues: We are recommending the replacement of Unit #542, a 1991 Chevrolet one- one with a dump box. Unit #542 will be disposed of upon receiving the new vehicle. Typically, the engines, transmissions and drive trains on these types of vehicles are capable of 70,000 to 100,000 miles of heavy use before needing major repairs and overhauls. This truck is ten years old and has accrued 78,000 miles. It needs approximately $5,800 of engine, transmission and steering work to bring it to a dependable condition. (See attached vehicle evaluation.) The State Cooperative Purchasing Program has prepared specifications and solicited bids for one-ton cab-chassis and bodies and one-ton pickup trucks. Weare recommending the purchase of the lowest priced vehicles bid. one ton cab 1~tJ7-3'i~C1'elmann 51. S.E., Prior Lake, Minnesota 55372/ Ph. (952) 440-9675 / Fax (952) 440-9678 AN EQUAL OPPORTUNIlY EMPLOYER T" r i ,........... I II 1 COST BENEFIT ANAL YSIS: one ton cab chassis_pickup The bids are shown as follows for the one-ton cab-chassis completely outfitted with dump body and plow: Vendor Grossman Falls Air Lake Chevrolet, Automotive, Ford, Burnsville, Fergus Falls, Lakeville, MN MN MN Manufacturer Chevrolet Dodge Ford Enl:dne V-10 Gas V-lO Gas V-10 Gas Base Price $37,957.00 $33,792.00 $34,779.00 Radio/Strobe/Misc $1,500.00 $1,500.00 $1,500.00 Less Trade-In $0 $0 $0 Subtotal $39,457.00 $35,292.00 $36,279.00 Tax $2,564.71 $2,293.98 $2,358.14 Total $42,021. 71 $37,585.98 $38,637.14 The state bids are shown as follows for the one-ton pickup with plow: Vendor Eggebrecht Chevrolet, C&M Ford, Duluth, MN Hallock, MN Manufacturer Chevrolet Ford Model 3500 F-350 Base Price $28,240.00 $26,548.00 Radio/Strobe/Misc $1,500.00 $1,500.00 Less Trade-In $0.00 $7,800.00 Subtotal $29,740.00 $20,248.00 Tax $1,933.10 $1,316.12 Total $31,673.10 $21,564.12 The trade in value of $7,800 under C&M Ford's bid for the pickup truck includes $5,000 for the 1991 Chevrolet one-ton dump. It also includes bids of $1,800 and $1,000 for two temporarily retained vehicles (1988 Ford pickup and 1986 Chevrolet utility truck). The 1986 Chevrolet utility truck was replaced last fall. Staff completed transferring tools and equipment this winter as time permitted. The 1988 Ford pickup is identified in the 2001 C.I.P. Matrix as a temporarily retained vehicle and was used primarily for summer staff. Grossman Chevrolet submitted a bid of $4,000 for the 1991 Chevrolet one-ton. This was $1,000 less than C&M Ford's bid. No other dealer expressed interest or bid on these vehicles. This allows us to dispose of all of these vehicles without putting out advertisements and going through a bidding process. The main goal of a replacement policy is to lower the equipment lifetime costs. Staff has investigated the maintenance records for the one-ton dump being considered for replacement. One way to analyze equipment replacement is to review its repair history. In ten years this truck has incurred approximately $5,700 in repairs. An additional $5,800 in repairs is needed to bring the vehicle to a dependable condition. Past reviews of vehicles indicate that after eight years numerous and major repairs occur increasing the lifetime life cycle costs. 2 CONCLUSIONS: AL TERNA TIVES: RECOMMENDED MOTION: REVIEWED BY: one ton cab chassis_pickup 111 Due to the needed repairs to Unit #542, staff recommends replacing it with the low bid ofthe Dodge one-ton cab and chassis of $37,585.98 from Falls Automotive. The new additional pickup proposed to be purchased will allow staff to have another vehicle to plow snow in cul-de-sacs and parking lots in the winter and for a variety of uses in the summer when our staff temporarily swells to about 38 people. We recommend purchasing the Ford one-ton from C&M Ford and trading in all three aforementioned vehicles, for a low bid of $21,564.12. The alternatives are as follows: 1. Approve Resolution Ol-XX authorizing the trade-in of Unit #542, the purchase of the Dodge one-ton 4x4 with dump and plow from Falls Automotive and the purchase of the 4x4 one-ton pickup with plow from C&M Ford and trade in of three existing vehicles. 2. Table this item for a specific reason. 3. Deny this agenda item for a specific reason. Staff recommends alternative number one. ic Works Director 3 ...,.-- I [ 11 .tJ.rJ-NNE SO~ ~ LUTION APPROVING THE PURCHASE OF TWO (2) VEHICLES UNDER THE STATE COOPERATIVE PURCHASING PROGRAM RESOLUTION Ol-xx MOTION BY: SECOND BY: WHEREAS, The City Capital Improvement Plan and Equipment Matrix for 2001 provides for the acquisition of two (2) vehicles for Public Works Department; and WHEREAS, Bids have been solicited and received through the State Cooperative Purchasing Program for these vehicles. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOT A, that the following are hereby adopted: 1. Staff is directed to place an order through the State Cooperative Purchasing Program for one 2001 one-ton Dodge cab and chassis and appurtenant equipment from Falls Automotive for the Public Works Maintenance Department in a total amount not to exceed $37,585.98. 2. Staff is directed to place an order through the State Cooperative Purchasing Program for the purchase of one 2001 Ford, F-350 four wheel drive pickup, from C&M Ford, for the Public Works Maintenance Department in a total amount not to exceed $21,564.12. 3. Staff is directed to trade in a 1991 Chevrolet one-ton with dump, (Unit #542) a 1986 Chevrolet pickup, (Unit # 458) and a 1988 Ford pickup (Unit #451) on the purchase of the Ford F-350 from C&M Ford. Passed this 2nd day of April 2001. YES NO Mader Mader Ericson Ericson Gundlach Gundlach Petersen Petersen Zieska Zieska { Seal } City Manager City of Prior Lake one lQIl8ab~hlls~is pickup 1/ f,j Adetmann S1. S.E., Prior Lake, Minnesota 55372 / Ph, (952) 440-9675 / Fax (952) 440-9678 AN EQUAL OPPORTUNITY EMPLOYER LIFE CYCLE COST Unit No. 542 Date: 01/25/01 For Year Ending: Lifetime as of 03/15/01 1. Vehic1e Description: 1991 Chevrolet One-ton 4x4 2. Attachments: Dump Box and Plow 3. Original Purchase Price: (incl. all attachments) $ 15,980.00 4. Resale Price: $ 5,000.00 5. Scheduled Life Expectancy: 10 Years 6. Usage Costs: a) Shop Hours: 120 b) Shop Labor Costs: $ 1 ,200.00 ($25/Hr.) c) PartsIMaterials: $ 4,500.00 d) Farmed Out Costs: $ 500.00 e) Insurance: $ 4,200.00 ($420.00/per year) f) Fuel Costs: $ 9,750.00 g) Downtime Replacement Rental: N/ A h) Total Usage Costs: $20,150.00 (b+c+d+e+f+g) 7. Total Mileage or Hours: 78,000 miles 8. Depreciation (3 - 4): $10,980.00 9. Total Life Cost (6h+8): $31,130.00 10. Life Cycle Average Cost (9/7): 0.40 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): * $5,800.00 16. Comments: one ton cab chassis_pickup III I ill MEMORANDUM DATE: March 21, 2001 TO: DOUG HARTMAN SUPERVISOR PUBLIC WORKS FROM: JON DONOVAN FLEET MAINTENANCE COORDINATOR SUBJECT: STATUS ON VEHICLE #542 1991 CHEVROLET 1 TON 4X4 5.7L GAS 77,800 MILES VIN # 1GBJK34KOME148836 Body & Interior: Rear fender supports cracked, body damage in several spots, door hinges worn out, floor $1,800.00 mat worn through, re-upholster and re-pad front seat, mirror mounts broken off door. Engine & Drive Train: Engine smokes on startup, transmission needs rebuild, front differential - all seals $2,800.00 leak, replace rear tires, replace exhaust, brake lines rusting out Steering & Suspension: Steering worn out, replace shocks $500.00 Hydraulics: Operate slow, hydraulic tank patched, plow frame bent and cracked. $700.00 TOTAL $5,800.00 Totallife-to-date expense (excluding fuel) $6,931.58 one ton cab chassis_pickup