HomeMy WebLinkAbout9F - PW Vehicle Purchases
REVIEWED BY:
SUBJECT:
APRIL 17, 2000
9F
BUD OSMUNDSON, DIRECTOR OF PUBLIC
WORKS / CITY ENGINEER 1/
FRANK BOYLES, CITY MANAGER . 3 T
CONSIDER APPROV AL OF RESOLUTION oo~
AUTHORIZING THE PURCHASE OF TWO, FIVE-
TON, SINGLE AXLE CAB AND CHASSIS TRUCKS
FOR PUBLIC WORKS MAINTENANCE THROUGH
THE STATE COOPERATIVE PURCHASING
PROGRAM
DATE:
AGENDA #:
PREPARED BY:
DISCUSSION:
History
The purpose of this agenda item is to authorize the
purchase of two replacement, five-ton single axle, cab and
chassis trucks through the Minnesota Cooperative
Purchasing Program.
Current Circumstances
The Public Works Maintenance Department utilizes five
ton trucks year around in the street and utility maintenance
areas. The duties include: snow plowing on the City's
streets, sand/salt spreading, hauling and spreading of
crushed rock, gravel, and bituminous materials; hauling of
street sweepings; hauling of unsuitable soil from utility
breaks in streets and the replacement of these soils with
sand; the hauling of street repair debris such as concrete
and bituminous; and the hauling of tree and storm debris;
plus a variety of other maintenance tasks.
The City currently has seven, five-ton single axle trucks.
Five are utilized for the Public Works maintenance
purposes described above. The Parks Department utilizes
each of these vehicles periodically and in addition has
assigned to their department two, single axle dump trucks.
They utilize these trucks for the hauling of materials such
as black dirt, ball diamond/in field lime and other
16200 EsgijtJ~~. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
aggregates. One of the Parks trucks is used on a regular
snow plow route and the 1984 is used in sanding operations
following up behind two front end loader plow routes.
Yearly, as 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. The matrix identifies $92,400.00 in 1999 and
$97,020.00 in 2000 as replacement costs.
The Issues
While the matrix calls for the replacement of two 1988
International trucks, we are recommending replacement of
a 1984 and 1988 truck. The remaining 1988 International
will be retained and rotated to the Parks Department to
replace the 1984 vehicle we trade. Typically, the engines,
transmissions, and drive train on five-ton trucks are capable
of operating 70,000 to 100,000 miles before needing major
repairs and overhauls. The problem with City owned, on
the road equipment is that while the engine survives,
everything else on the vehicle rusts or wears out and
requires replacement.
The two trucks to be replaced were given a thorough
inspection by Jon Donovan, our Fleet Maintenance
Coordinator. His description of the status of the 1988 truck
and the 1984 truck is attached. The 1984 International
truck (Unit #518) needs approximately $25,000.00 worth of
work to bring it to a serviceable and dependable condition.
The 1988 International, (Unit #463) will need
approximately $20,500 worth of rehabilitation work.
This agenda item is only for the authorization to order the
two, five-ton, single axle body and chassis trucks. The
authorization to purchase the remaining equipment, the
box, plow, wing, sander, and hydraulic system to operate
them, which is also purchased through the State
Cooperative Purchasing Program, will be brought back to
you at a later date. The estimated cost per truck for this
equipment is approximately $40,000.00.
SINGAXLE.DOC
These trucks right now are taking five to six months to
receive after an order is placed. The additional equipment
will take one to two months to be manufactured and
installed after the body and chassis arrives.
The State Cooperative Purchasing Program has prepared
specifications and solicited bids for five ton, single axle
body and chassis. The bids are shown below:
Manufacturer
Model
Engine
Engine
Warranty
Base Price
Options
Subtotal
X Two Trucks
Less trade-in
Subtotal
Tax
Total
Sterling
L-8500
CAT 3126,250 h.p.
3 yr., 150,000 miles
International
2654
AT466E, 250 h.p.
3 yr., 150,.000 miles
$45,500.00
$7,485.00
$52,985.00
$105,970.00
($20,400.00)
$85,570.00
$5,562.00
$91,132.00
$45,250.00
(1) $8,500.00
$53,750.00
$107,500.00
($12,000.00)
$95,500.00
$6,208.00
$101,708.00
Notes:
1. The International truck does not offer a heavy duty
driveline, automatic drain valves on air tanks, heavy
duty midship crossmember, front fender extensions, or
a transmission temperature gauge which are included in
the Sterling options price.
Three other vendors, Mack, Freightliner, and Volvo
provided base bids of $60,634.00, $48,030.00, and
51,089.00 respectively. In addition, to having higher base
bids, these three manufacturers' trucks are not commonly
used for snowplowing; and therefore, are not designed
appropriately for a snow plow, wing, and all the associated
electrical and hydraulic system components.
SINGAXLE.DOC
FINANCIAL IMPACT
Cost Benefit Analvsis
The main goal of a replacement policy is to lower the
equipment life time costs. With the age, the amount of
hours, and wear and tear on the 1984 and 1988
Internationals, costly repairs and down time have occurred.
Staff has investigated the limited maintenance records we
have for the trucks being considered for replacement. One
way to analyze whether or not a piece of equipment should
be replaced is to look at the number of times it is in the
shop, and then at how many times it was in for major repair
and not standard maintenance such as lube, oil, and filter.
Unit #463, the 1988 International was in the shop twenty-
two times from 1989 through 1996, ten times for major
repairs. In the period between 1997 and 2000, it was in the
shop twenty-two times and required major repairs
seventeen times. Data on the 1984 International is very
limited and nonexistent prior to 1989. As a comparison,
Unit #464, the other 1988 International truck, was in the
shop twenty-three times from 1989 through 1996, nine
times for major repairs. However, from 1997 through
1999, it was in the shop twenty-seven times, and required
major repairs twenty-three times out of the twenty-seven.
This data suggests that in the eighth or ninth year more
major repairs are required, and the lifetime and lifecycle
costs increase.
As shown above, the Sterling cab and chassis is the lower
of the two bids received for these trucks on the State
Cooperative Purchasing Program. The total price including
base plus options of $52,985.00 for each cab and chassis
compares favorably to the 1998 price which the City paid
of $52,851.00. In the future, these trucks should be traded
in when they are ten years old and the frames, boxes, and
plows are in better condition, if we wish to maximize our
trade-in and thereby lower our lifetime costs. Our trade in
vehicles for this purchase are sixteen years old and twelve
years old.
City Council Purchasing 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
SINGAXLE.DOC
criteria the Council discussed and how this purchase
addressed each criteria is shown below:
Use minimum requirement specification not listed wants:
The work performed by these trucks dictates the type and
size of equipment. These vehicles are used year around for
hauling and snow removal and therefore are sized
accordingly.. These trucks are 250 h.p. versus 210 h.p. on
the proposed trade-ins which is now the industry standard
for this size truck. It also matches the 1998 Sterling truck
engines previously purchased.
Use functional requirements not an individual
manufacturer's specifications:
The specifications were prepared by the State Purchasing
Department employees based upon their experience with
equipment and the need expressed by public agencies
purchasing from the bid.
Receive where possible three real bids:
Bids were received from five bidders, two of which had a
small difference of$765.00 between the two bids.
Time for the Citv Council to act:
If the City Council desires additional information, this item
could be deferred.
Utilize some form of financial analvsis to support the
purchase:
The only alternative to purchasing these trucks outright to
purchase over time through a loan. Sterling offers a 1 %
interest per month alternative to purchasing outright while
International has an offer of 7 1/2% annual interest after
thirty days.
These trucks, due to the requirements of snow removal
equipment are not available to lease. Renting of dump
trucks is an option at a cost of $45 to $65 per hour for
hauling purposes, but we still would need additional snow
plowing equipment unless we subcontract this work. Most
contractors do not have snow plows, wings, and sanding
equipment for their dump trucks, and their dump trucks are
too big (large turning radius) to plow residential streets.
We have calculated the life cycle costs for the equipment
being replaced. These costs are affected by the original
SINGAXLE.DOC
.
r
ALTERNATIVES:
SINGAXLE.DOC
By purchasing Sterling trucks, the City can economize on
our inventory of parts, plus our drivers are more easily
interchangeable, being familiar with the two Sterlings we
presently own. The familiarity with trucks can be a
significant safety concern in snow plowing operations. The
Sterlings are less expensive and Staff is familiar with these
trucks, so our recommendation is to purchase the trucks at
this time. If approved now, the two trucks may be ready
for service about the middle of the 2000 - 2001 snow
season.
The alternatives are as follows:
1. Approve Resolution OO-XX authorizing the trade-in
of the two vehicles and the purchase of two
Sterling cab and chassis from Boyer Sterling Trucks
of Minneapolis for a total cost of$91,132.00
2. Table this item for a specific reason.
3. Deny this item for a specific reason.
I
3~
RESOLUTION 00-
MOTION BY:
UTION APPROVING THE PURCHASE OF TWO (2) STERLING, FIVE TON,
SINGLE AXLE, CAB AND CHASSIS
J~
SECONDED BY:
ps
WHEREAS,
WHEREAS,
the 1999 and 2000 Equipment Replacement Fund & Matrix identifies the
purchase of two (2) replacement five ton, single axle dump trucks, and
the two trucks being replaced are a 1984 and a 1988 International; and
the cab and chassis will be purchased through the State of Minnesota
. Cooperative Purchase Agreement which has prepared specifications and
received bids as foHows:
WHEREAS,
VENDOR BOYER STERLING TRUCKS NORTH STAR INTERNA T'L
TRUCKS
MAKE & MODEL Sterling, L8500 International, 2654
HORSE POWER 250 h.p. 250 h.p.
PRICE (2 Trucks) $105,970.00 $107,500.00
TRADE-IN ($20,400.00) ($12,000.00)
SUB TOTAL $85,570.00 $95,500.00
TAX $5,562.00 $6,208.00
TOTAL $91,132.00 $101,708.00
WHEREAS,
Boyer Sterling Trucks appears to be the lowest responsible bidder in the
amount of$91, 132.00
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, to
approve the purchase of two (2) 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
$91,132.00.
AND FURTHER, trade-in of 1984 International truck (#518) and the 1988 International truck
(#463) is hereby authorized.
Passed and adopted this 17th day of Allril. 2000.
YES
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NO
{Seal}
City Manager
16200 E.Sglifi~~. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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LIFE CYCLE COST
Unit No. 518
Date: 04/07/00
For Year Ending:
Lifetime as of 04/07/00
1.
Vehicle Description:
1984 International 5 Ton, Single Axle Dump Truck
2. Attachments: Dump Box, Plow and Wing
3.
Original Purchase Price:
(inc!. all attachments)
$ 25,000.00
(In service since 8/84)
4.
Resale Price:
$ 7,200.00
5.
Scheduled Life Expectancy:
10 Years
6. Usage Costs: (Since 1989)
a) Shop Hours: 120
b) Shop Labor Costs: $ 3,000.00
($25/Hr.)
c) PartsIMaterials: $ 2,900.00
d) Farmed Out Costs: $ 500.00
e) Insurance: $ 6.420.00 ($400.00/per year)
f) Fuel Costs: $11,643.00
g) Downtime Replacement Rental: N/A
h) Total Usage Costs: $28.943.00
(b+c+d+e+f+g)
7. Total Mileage or Hours: 58.213 miles
8. Depreciation (3 - 4): $17,800.00
9. Total Life Cost (6h+8): $46,743.00
10. Life Cycle Average Cost (9/7): 0.80 per mile
11. Life Cycle Average Cost
for Vehicle Class: *
12. Downtime in Hours This Year: *
13. Downtime - Life of Machine: *
14. A verage Downtime By Class: *
*Unknown
15. Estimated Future Maintenance
Expenditures (Attachments): $25,100.00
16. Comments: No data available prior to 1989.
.
MEMORANDUM
DATE: April 7, 2000
TO: BUD OSMUNDSON
PUBLIC WORKS DIRECTOR
FROM: JON DONOVAN
FLEET MAINTENANCE COORDINATOR
SUBJECT: STATUS ON VEHICLE #518
1984 INTERNATIONAL MODEL 1954 DUMP TRUCK
DT 466 210 HP DIESEL
58,213 MILES
VIN # 1HTLDTYN2EHA66636
Cab & Frame: Cab, cabmounts, and cab frame structure rusted through, air tank rusting $13,000.00
through, shocks rusted out, frame crossmembers rusting through
Plow: Plow frame rusted through and bent up, wing plow rusted through $3,000.00
Engine & driveline: Excessive blow-by (low compression), steel lines on engine rusting $6,200.00
through, steering box needs rebuilding, replace clutch, wheels rusting through
Hydraulic tank cracked and leaking, hydraulic control valves corroded, hydraulic hoses $2,000.00
leaking and frayed
Radiator - re-core $400.00
Rewire electrical $500.00
TOTAL $25,100.00
MEMO#518,DOC
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LIFE CYCLE COST
Unit No. 463
Date: 04/07/00
For Year Ending:
Lifetime as of 04/07/00
1.
Vehicle Description:
1988 InternationalS Ton, Single Axle Dump Truck
2. Attachments: Dump Box, Plow and Wing
3.
Original Purchase Price:
(inc!. all attachments)
$ 29,000.00
4.
Resale Price:
$ 14.100.00
5.
Scheduled Life Expectancy:
10 Years
6. Usage Costs:
a) Shop Hours: 120
b) Shop Labor Costs: $ 3,000.00
($25/Hr.)
c) PartsIMaterials: - $ 2,900.00
d) Farmed Out Costs: $ 1,500.00
e) Insurance: $ 4,620.00 ($420.00/per year)
t) Fuel Costs: $14,361.00
g) Downtime Replacement Rental: N/A
h) Total Usage Costs: $26,381.00
(b+c+d+e+f+g)
7. Total Mileage or Hours: 71,807 miles
8. Depreciation (3 - 4): $14,900.00
9. Total Life Cost (6h+8): $41,281.00
10. Life Cycle Average Cost (9/7): 0.57 per mile
11. Life Cycle Average Cost
for Vehicle Class: *
12. Downtime in Hours This Year: *
13. Downtime - Life of Machine: *
14. A verage Downtime By Class: *
*Unknown
15. Estimated Future Maintenance
Expenditures (Attachments): $20.500.00
16. Comments:
.
MEMORANDUM
DATE: April 7, 2000
TO: BUD OSMUNDSON
PUBLIC WORKS DIRECTOR
FROM: JON DONOVAN
FLEET MAINTENANCE COORDINATOR
SUBJECT: STATUS ON VEHICLE #463
1988 INTERNATIONAL MODEL 1954 DUMP TRUCK
DT466 210 HP DIESEL
71,807 MILES
VIN # IHTLDTVN5JH554258
Cab & frame: Cab corners rusted through, fuel tank and supports rusting through $1,500.00
Box and Plow: Box stretched and rusting through, subframe for box rusting and cracked $6,500.00
Plow Frame: Bent up, plow has been rebuilt and patched together three times $2,500.00
Sander: Worn out $2,100.00
Engine & drivetrain: Engine has scored cylinders as per Astleford International, air $5,700.00
compressor housing cracked, power steering pump bad
Hydraulics operate slow, hoses leaking and frayed $1,500.00
Replace air dryer $300.00
Re-core radiator $400.00
TOT AL $20,500.00
MEMO#463.DOC
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