HomeMy WebLinkAbout8D1 - Purchase PW Trucks
MEETING DATE:
AGENDA #
PREPARED BY:
REVIEWED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
APRIL 16,2001
8D 1
DOUG HARTMAN, PUBLIC WORKS SUPERVISOR
BUD OSMUNDSON, PUBLIC WORKS DIRECTOR
CONSIDER APPROVAL 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 purchase two vehicles for the
Public Works 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 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 replaced or
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.
The bids are shown as follows for the one-ton cab-chassis completely outfitted with
one ton cab T,.{)I73'i~ifelmann 5t. 5.E., Prior Lake, Minnesota 55372 / Ph. (952) 440-9675 / Fax (952) 440-9678
AN EQUAL OPPORTUNITY EMPLOYER
n- .
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T
II
COST BENEFIT
ANALYSIS:
CONCLUSIONS:
one ton cab chassis_pickup
dump body and plow:
Vendor Grossman Falls Air Lake
Chevrolet, Automotive, Ford,
Burnsville, Fergus Falls, Lakeville,
MN MN MN
Manufacturer Chevrolet Dodge Ford
Engine V-IO Gas V-IO Gas V-IO 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.
Due to the needed repairs to Unit #542, staff recommends replacing it with the low bid
2
ALTERNATIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
one ton cab chassisyickup
111 :r
of the 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 OI-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.
3
I
r j,
4,llVNE SO't ~
SOLUTION APPROVING THE PURCHASE OF TWO (2) VEHICLES UNDER THE
STATE COOPERATIVE PURCHASING PROGRAM
RESOLUTION 01~ '12-
MOTION BY:
~~
SECOND BY: ~\ G
WHEREAS,
The City Capital Improvement Plan and Equipment Matrix for 200 I 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 16th day of April 2001.
YES
NO
Mader \ Mader
Ericson \ Ericson
Gundlach \ Gundlach
Petersen \ Petersen
Zieska Zieska
{ Seal }
City Manager
City of Prior Lake
oneiDJl6~h~8~~~'W\ St. 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.
Vehicle Description:
1991 Chevrolet One-ton 4x4
2. Attachments: Dump Box and Plow
3.
Original Purchase Price:
(inc!. 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) Parts/Materials: $ 4,500.00
d) Farmed Out Costs: $ 500.00
e) Insurance: $ 4,200.00 ($420.00/per year)
t) 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
1
I, Ii
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 # IGBJK34KOME148836
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