The URL can be used to link to this page

Home My WebLink About9A - Purchase of 3 Vehicles . CITY COUNCIL AGENDA REPORT REVIEWED BY: SUBJECT: MARCH 6, 2000 9A BUD OSMUNDSON, DIRECTOR OF PUBLIC WORKS I CITY ENGINEER / ~ FRANK BOYLES, CITY MANAGER / T CONSIDER APPROVAL OF RESOLUTION OO~ APPROVING THE PURCHASE OF THREE (3) VEHICLES UNDER THE STATE COOPERATIVE PURCHASING PROGRAM DATE: AGENDA #: PREPARED BY: DISCUSSION: HISTORY The City's Capital Improvement Program 2000 - 2004, which was adopted by the City Council on May 17, 1999. itemizes equipment to be purchased through a matrix which is attached. This item is for Council consideration to purchase two (2) vehicles for the Public Works Department and one (1) vehicle for the Fire Department. The Public Works Department is seeking to purchase two (2) vehicles; One being a four-wheel drive pickup truck (replacement vehicle) and the other being a utility van (new or additional vehicle). The pickup truck desired to be purchased will replace a 1989 Chevrolet 4x4, one ton vehicle. This 1989 pickup will be moved to the Temporarily Retained Equipment (liTRE") category and will mainly be used for summer workers through the end of 2001. The 1986 Chevrolet, 3/4 Ton pickup now in the liTRE" category will be sold or traded in this fall (most likely at a county auction). The new replacement vehicle is required to be a four-wheel drive, gas engine, which will be utilized for both utilities and streets. The cab and chassis is proposed to be outfitted with a steel utility box and include an electric over hydraulic cable winch lift (or boom) and a post pounder. The boom and lift will be utilized in utilities for the maintenance of lift stations and other items requiring lifting. The post pounder will be utilized in the installation and replacement of street signage. The van will be an additional piece of equipment which will be utilized mainly in the utility area. The Maintenance Department is responsible for all utility locates. This involves physically locating all city owned utilities (sewer, water and storm sewer) as part of the Gopher State One Call Program. During the construction season. this task can include over one-hundred (100) required locates per day. The van is a better vehicle for this function rather 1620JEJimS;oo~ Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER CONCLUSION: FINANCIAL IMPACT: VEHICLES.DOC than a pickup (which was originally programmed for purchase) because it can house the location equipment, paint cans, valve wrenches, as-built plans, plumbing equipment and materials for water meter replacement and service. This vehicle will have a city logo and a "Gopher State One Call" logo painted on it which is a good public relations tool to advertise the State law which requires calling prior to any excavation. The third vehicle is an additional one-ton pickup. The new vehicle will be a four wheel drive pickup and include a slip in pump, tank and hosing for fighting grass fires. This slip in unit will replace a twenty plus year old unit which is worn out and is undependable. The new vehicle will include a crew cab to enable more fire fighters to reach their destination together. The 1983 Chevrolet 3/4 ton pickup will be retained by the Fire Department for uses such as hose hauling, towing the smokehouse and other work. The 1986 Chevrolet 3/4 ton pickup to be auctioned has 117,000 miles and was recently involved in an accident. The life expectancy of a pickup utilized in Public Works is approximately eight years. This vehicle is beyond reasonably accepted limits in years and miles. Staff recommends replacing all units as outlined. The attached sheets itemize the costs for each unit. The budget for the Public Works Department pickup replacement is $44,352.00 which includes the cab and chassis and all necessary attachments. The matrix contains $33,521.00 which was originally programmed for a pickup but which we are recommending be used to purchase the less expensive van. The matrix includes $36,500.00 for the Fire Department grass rig. The actual vehicle cost without the pump and tank and light bar is $26,076.00 We anticipate that the other items may require up to an additional $15,000.00 and are requesting authorization to purchase these items. The $5,000.00 beyond the present matrix allocation would be drawn from the Equipment Fund. Staff is just beginning to utilize a software program to track maintenance costs for equipment. However, we do have some written maintenance records which have allowed us to document the Life Cycle Cost for Unit No. 458, the 1986 pickup we are proposing to sell. The attached Life Cycle information is from the American Public Works Association literature. The optimum point to replace a vehicle is when its life cycle average cost is at its lowest point. The Unit No. 458 life cycle cost is attached as an example. When Staff has more data to compare it to, the optimum economic replacement point will become evident, but it is not readily available now. Generally the eight year replacement cycle for pickups used by the city compares favorably with other similar government units. The vehicles in question are far outside this cycle limit. CITY COUNCIL PURCHASING CRITERIA USE MINIMUM REQUIREMENT SPECIFICATIONS NOT A LIST OF WANTS. . The Public Works pickup truck is sized to carry equipment and supplies for sewer and water repairs, post pounder and lift, and is four wheel drive to access the city's thirty lift stations many of which are accessible year around by unimproved driveways. · The van is intended to provide covered storage space for electronic location equipment, meter parts and repair tools and paper as-built plans for location purposes. Eventually a lap top portable computer will be housed in the vehicle to help the operator locate utilities in the field. . The proposed grass rig is a 4x4 because grass fires are often difficult to access; the one ton carrying capacity is for the 2,500 + lb. slip in pump/tank unit and for the crew cab configuration to carry firefighters to the scene. USE FUNCTIONAL REQUIREMENTS NOT MANUFACTURER'S SPECIFICATIONS . The specifications for each vehicle we propose to acquire were developed by the State Cooperative Purchasing Organization. In the case of the Public Works 4x4 one ton pickup, only one vendor (Ford) bid. To double check the validity of the bid, we received an independent quote shown on the affidavit. The van received three bids. Here again we compared to a non-bidding vendor and the cooperative bid is better. The grass rig pick up was bid by Grossman Chevrolet and Superior Ford. While Grossman Chevrolet was the low bidder they have informed us that they will accept no more orders because of model year construction schedules. Therefore, the only remaining bid who will take our order is Superior Ford. We have checked this bid as well with an independent vendor and find it to be competitive. VEHICLES.DOC T-- - .-. . RECEIVE THREE REAL BIDS · The criteria was not met through the state bidding process but the bids do appear "real" based upon the comparisons we have obtained. PROVIDE THE COUNCIL WITH TIME TO ACT · The Council may defer all or a portion of this agenda item if it desires. UTILIZE SOME FORM OF FINANCIAL ANALYSIS · The Agenda Report and attachment provides a Life Cycle Cost for the piece of equipment being replaced. ALTERNATIVES: The alternatives are as follows: 1. Approve Resolution OO-XX approving the purchase of three (3) vehicles under the State Cooperative Purchasing Program. 2. Amend and approve Resolution OO-XX. 3. Deny this agenda item fora specific reason and provide Staff with direction. RECOMMENDED MOTION: Alternative #1 as deSC'4bove. ' is the recommended action by Staff. . /)~ REVIEWED BY: ,(Y. -- VEHICLES.DOC II RESOLUTION oo)li' (1- A RESOLUTION APPROVING THE PURCHASE OF THREE (3) VEHICLES UNDER THE STATE COOPERATIVE PURCHASING PROGRAM MOTION BY: SECOND BY: WHEREAS, the City Capital Improvement Plan and Equipment Matrix for 2000 provides for the acquisition of two (2) vehicles for the Public Works Department and one (1) for the Fire 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, that the following, are hereby adopted: 1. Staff is directed to place an order through the State Cooperative Purchasing Program for the purchase of one 2000 Ford, F~350 four wheel drive pickup for the Public Works Maintenance Department and to purchase other itemized equipment using the City Purchasing Policy in a total amount not to exceed $44,352.00. 2. Staff is directed to place an order through the State Cooperative Purchasing Program for one 2000 Ford Windstar van for the Public Works Maintenance Department and to purchase other itemized equipment using the City Purchasing Policy in a total amount not to exceed $20,892.00. 3. Staff is directed to place an order through the State Cooperative Purchasing Program for a one 2000 Ford F-350, crew cab, four wheel drive pickup, for the Fire Department and to purchase other itemized equipment using the City Purchasing Policy in an amount not to exceed $41,076.00. 4. Staff is directed to dispose of a 1986 Chevrolet 3/4 ton pickup in accordance with state statute and city code. Passed and adopted this day of March, 2000. YES NO Mader \ Mader Ericson \ Ericson Gundlach \ Gundlach Petersen Petersen Schenck , Schenck {Seal} City Manager City of Prior Lake ~eamtEa.@0ereek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ^.-...."._--'".._-.~.~_.....~--~,,-_..._._.,,_._-_._,.._.,-~..-"._-,._-~--_." -,. PUBLIC WORKS MAINTENANCE PICKUP STATE: RELEASE: ITEM: Contract #424979 #T -636(5) 2000 Ford F-350 Regular Cab 4x4 Cab/Chassis. Dual Rear CA60" $21,893.00 132.00 (35.00) $21,990.00 Trailer, Tow Package Block Heater Truck $ 6,600.00 $ 7,900.00 $ 5,500.00 $ 2.300.00 $22,300.00 Utility Box Lift Post Pounder Miscellaneous TOTAL $44,290.00 Plus Tax ($44,352.00 Matrix) PUBLIC WORKS UTILITY TRUCK BIDS Required Specs: 4 wheel drive, regular cab chassis, one ton, dual rear wheels, gas engine, ability to tow trailer NOTE: Only Ford bid this truck in State Bid Quote: State Bid Independent Quote Vendor: Air Lake Ford . Freeway Ford Make & Model: Ford F-350 Ford F-350 Specifications: Cab to axle 60 inches, 6.8L Same gas engine standard (minimum) Price: $21,990.00 $23,385.00 Tax: $ 1,429.35 $ 1,520.03 Total: $23,419.35 $24,905.03 PUBLIC WORKS MAINTENANCE UTILITY LOCATE VAN - GOPHER STATE ONE CALL STATE: RELEASE: ITEM: Contract #424726 #T -642(5) 2000 Ford Winds tar Front Wheel Drive Cargo Van $16,639.00 (35.00) $16,604.00 Block Heater Truck $ 1,000.00 $ 1,600.00 $ 200.00 Light Bar & Strobe/Radio Compartment Storage Graphics TOTAL $19,404.00 Plus Tax ($33,521.00 Matrix*) (* Amount was based upon pickup rather than van.) PUBLIC WORKS VAN BIDS Required Specs: Front wheel or all wheel drive, gas engine, cargo area Quote: State Bid State Bid State Bid Independent Quote Vendor: Falls Automotive Grossman Chev. Air Lake Ford Freeway Ford Make & GMC Safari Chevrolet Venture Ford Wins tar Ford Winstar Model: Cargo Cargo Cargo Cargo Specifications: All wheel drive, Front wheel, Front wheel, Front wheel, automatic automatic automatic automatic transmission, 4.3 transmission,3.4L, transmission, transmission, L, V 6 engine V 6 engine 3.8L, V6 3.8L, V6 engine engine Price: $18,847.00 $17,847.00 $16,604.00 $18,363.00 Tax: $ 1,225.06 $ 1,160.06 $ 1,079.26 $ 1,193.60 Total: $20,072.06 $19,007.06 $17,683.26 $19,556.60 - . FIRE DEPARTMENT GRASS RIG STATE: RELEASE: ITEM: Contract #424727 #T -643(5) 2000 Ford F -350 Crew Cab 4x4. 8' Box. Single Rear TOTAL $25,111.00 35.00 $ 1.000.00 $26,076.00 $10,000.00 $ 5,000.00 $41,076.00 Elect Brakes/Tow Pkg. Pump, Tank, Equipment Slip In (Estimate) Lightbar/Radio/Options (Estimate) Plus Tax ($36,500.00 Matrix) FIRE DEPARTMENT GRASS RIG BIDS Required Specs: 4 wheel drive, 1 ton crew cab, standard box, ability to tow trailer, gas engine, single rear wheels. Quote: State Bid State Bid Independent Quote Vendor: Superior Ford Grossman Chevrolet Mahowald Motors Make & Ford F350, Crew Chevrolet Classic, 4 Chevrolet Classic Model: Cab wheel drive, crew cab and crew cab Specifications: Standard 8' box, Standard 8' box, 7.4L, Standard 8' box, 6.8L gas engine, V -8 automatic 7.4L, V-8 automatic automatic transmission transmission transmission Price: $25,342.00 $25,080.00 $26,650.83 Tax: $ 1,647.23 $ 1,630.20 $ 1,732.30 Total: $26,989.23 $26,710.20 $28,383.13 LIFE CYCLE COST A. Total Life Cost = Usage Cost + Depreciation B. Depreciation = Purchase Price - Resaie Price C. Usage Costs = Maintenance + Operations D. Life Cycle Average Cost = Total Life Cost Age of Vehicle (or Usage) The Optimum Economic Replacement is when this cost is at its lowest. MAINTENANCE AND OPERATING COSTS Labor Materials Repairs Accident Repairs Fuel Lubricants Insurance Down Time . 30 !'I I 5500 5250 55000 ~ a .... "i a g ~ u 4750 4500 4250 4000 Optimum Economic Replacement . 1 2 3 7 8 9 4 S 6 Y cars ... "------'--------~-_..._.. 5250 - j 5000 - .8 i 4750 Penalty Cost .- ~ a - 4500 a 8 4250 4000 .8 9 Years ~ . LIFE CYCLE COST Unit No. 458 Date: 2/15/00 For Year Ending: December 31, 1999 1. Vehicle Description: 1986 Chevrolet 3/4 Ton Pickup 2. Attachments: Purchased used in 1993 3. Original Purchase Price: (inc!. all attachments) $ 7.500.00 4. Resale Price: $ 1.000.00 5. Scheduled Life Expectancy: 8 Years 6. Usage Costs: a) Shop Hours: 170 b) Shop Labor Costs: $ 4.250.00 ($25/Hr.) c) PartslMaterials: $ 4,000.00 d) Farmed Out Costs: $ 1.200.00 e) Insurance: $ 3.484.00 ($268.00/per year) f) Fuel Costs: $ 9,767.00 g) Downtime Replacement Rental: N/A h) Total Usage Costs: $22,701.00 (b+c+d+e+f+g) 7. Total Mileage or Hours: 117,200 miles 8. Depreciation (3 - 4): $ 6,500.00 9. Total Life Cost (6h+8): $29,201.00 10. Life Cycle Average Cost (9/7): 0.249 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): $10.100.00 16. Comments: I MEMORANDUM DATE: FEBRUARY 14, 2000 TO: BUD OSMUNDSON PUBLIC WORKS DIRECTOR FROM: JON DONOVAN FLEET MAINTENANCE COORDINATOR SUBJECT: STATUS ON VEHICLE #458 1986 CHEVROLET 3/4 TON 4X4 5.7L GAS 117,150 MILES VIN # IGC6K24M5GF346697 Body: Utility box - replace (not repairable). $4,500.00 Floor boards, doors, fenders, il1I)er fenders, cab comers all rusted through. Door hinges worn out. Body parts, paint, labor. $2,200.00 Steering & suspension: Broken rear leafs - both sides sprung, steering components loose, powersteering leaks, shocks worn out, needs alignment. $1,400.00 Engine & drive train: Front engine seal leak, valve covers leak, complete tune-up; transmission, transfer case and differential leak; exhaust system bad, needs rear brakes, replace radiator or re-core. $1,800.00, Reupholster seat, replace floor mat, both worn out. $200.00 TOTAL $10,100.00 Vehicle condition can be attributed to the high use of this equipment along with the recent accident damage -- this is consistent with its age (14 years) and mileage (117,000). .- MEMO#458.DOC