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HomeMy WebLinkAbout9D - Purchase of Trailer MEETING DATE: AGENDA # PREPARED BY: APPROVED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT April 17 , 2000 9D AL FRIEDGES, PARK SUPERVISOR 32- PAUL HOKENESS, PARKS & RECREATION DIREgOR CONSIDER APPROVAL OF RESOLUTION OO;)CX AUTHORIZING THE OF PURCHASE ONE (1) 22 FOOT (10,000 G.V.W.) TRAILER Historv The purpose of this agenda item is to consider authorizing the purchase of one (1) 22 foot (10,000 G.V.W.) trailer for transporting equipment. Yearly as a part of the Capital Improvement Program the City Council adopts an equipment replacement fund and matrix. The purpose of the equipment replacement fund and matrix is to identify and budget for equipment and vehicles which need replacement due to age and wear, or for additional equipment which needs to be purchased. All equipment identified in the matrix is subject to Council approval regardless of price. Current Circumstances The Parks Maintenance Department relies heavily on four (4) trailers year around for hauling bobcats, mowers, blowers, brooms, benches, tables, bleachers, lumber, etc. The Issues This trailer would replace a 1984 homemade trailer to be traded in. The structural integrity of this trailer has deteriorated to the point where it can no longer be utilized for hauling equipment. We feel it is necessary to replace this with a trailer which has been manufactured and certified to meet the current DOT standards. (The homemade trailer does not). Conclusion The city purchasing policy requires that for purchases between $5,000 and $15,000 written quotations are required from at least two sources. Typically, the city manager would have authority to make this purchase, but since it is part of the equipment matrix and not part of the city budget, City Council approval is sought. Written quotes were received from Wahl's Equipment, Scharber & Son's, and Lano Equipment. Scharber & Son's quote was through the State of Minnesota Cooperative Purchasing Agreement. All trailers are comparable and manufactured by two different firms. Wahl's equipment was the only dealer that offered a trade-in. AGTRAIL.DOC I 16200 Eagle Creek Ave. S.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EtvlPLOYER The quotes were very close with a difference of $395.00 from high to low. Only Wahl's Equipment provided a trade-in for the used trailer. Including tax and trade-in, the low quote amount is $5,852.18 from Wahl's Equipment. We have purchased from Wahl's Equipment in the past, and our experience has been excellent with this vendor. FISCAL IMPACT: There is $6,037 identified for the purchase of one (I) trailer in the Parks & Recreation Department Equipment Matrix which was identified in the Capital Improvement Program. Cost Recoverv Summarv 1. I Equipment Description: I 1984 Homemade Trailer I JAA 22 ft. Trailer 2. I Equipment Condition: I Poor 1 New 3. I Equipment Hrs./Miles I N/A I N/A 4. I Primary Use I Hauling Equipment I Hauling Equipment 5. I Useful Life/Depreciation Term: 112 Years 112 Years 6. I Equipment Age: I 1 6 Years I New 7. I Acquisition Date: /1984 12000 8. I Acquisition Cost: I $5,000.00 I $5,595.00 9. I Matrix Budget Amount: I N/A 1 $6,037.00 plus tax 10. I Depreciation: I $4,900.00 1N/A 11. I Present/Trade-in Value: r $100 I N/A 12. / Projected Equipment Retention Schedule: I N/A 112 Years 13. I Net Cost After Trade-in: I N/A I $5,495.00 14. I Total Cost Including Tax: I N/A I $5,852.18 Existing EquiQment Replacement Equipment Citv Council Purchasinl! Criteria At the February workshop the City Council discussed purchasing for the year 2000. Some guidelines were discussed and the purchasing policy was reviewed. The criteria the Council discussed and how this purchase addresses each criteria is shown below: AGTRAILDOC 2 ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: AGTRAILDOC T.'-' Use Minimum Requirement Specification Not Listed Wants This trailer is used year round for hauling skid-loaders, mowers, brooms, blowers and miscellaneous materials. The weight of equipment transported along with D.O.T. specifications dictates the size of trailer needed. Use Functional Requirements Not An Individual Manufacturers Specifications Quotes were sought for comparable trailers manufactured by two different firms. Receive Where Possible Three Real Bids Bids were received from (3) three bidders with a difference of $395.00 from high to low. The bid from Scharber & Son's was through the State of Minnesota Cooperative Purchasing Agreement. Time For The Citv Council To Act If the City Council desires additional information, they can call AI Friedges, Parks Maintenance Supervisor at 440-9675, or this item could be deferred until further data can be provided. Utilize Some Form Of Financial Analysis To Support The Purchase The trailer being replaced is a 1984 homemade trailer. The structural integrity of this trailer is deteriorated and can no longer be utilized for transporting equipment. Driving the mowers, skid-loaders, etc. to various parks and job sites would result in 2 to 3 hours per machine on road time daily. This also creates a dangerous situation, driving slow moving equipment down busy roads and highways. The alternatives are as follows: 1. Approve Resolution OO-xx authorizing the trade-in of our currently owned 1984 homemade trailer for $100.00 and purchase one (1) JAA 22 foot trailer for the cost of $5,852.18 (tax included). 2, Table this item. 3. Deny this item. 3 T RESOLUTION oo~ J Z- '\~ o ION APPROVING THE PURCHASE OF ONE (1) 22 FOOT (10,000 G.V.W.) JAA TRAILER MOTION BY: SECOND BY: WHEREAS, the 2000 Equipment Replacement Fund & Matrix identifies the purchase of one (1) replacement trailer; and WHEREAS, the trailer being replaced is a 1984 homemade trailer; and \VHEREAS, pursuant to state law and city purchasing policy written quotes were received from: Vendor Wahl's Equipment Scharber & Son's Lana Equipment, Inc. Make & Model JAA Trailer Felling FTIOEW Felling FTIOE Length 22 feet 22 feet 22 feet Price $5,595.00 $5,870.55 $5,990.00 Trade-in $100.00 $0.00 $0.00 Sub- Total $5,495.00 $5,870.55 $5,990.00 Tax $357.18 $381.59 $389.35 Total $5,852.18 $6,252.14 $6,379.35 WHEREAS, the lowest responsible quote is submitted by Wahl Equipment in the total amount of $5,852.18. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, to approve the purchase of one (1) 22 foot (10,000 G.V.W.) JAA Trailer from Wahl Equipment and further that the trade in of the 1984 homemade trailer is hereby authorized. Passed and adopted this 17th day of April, 2000. YES NO Mader Mader Ericson Ericson Gundlach Gundlach Petersen Petersen Schenck Schenck { Seal } City Manager City of Prior Lake 1~~9J;.'l~treek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 - AN EQUAL OPPORTUNITY EMPLOYER . .--------r--