HomeMy WebLinkAbout10C 2013 Equipment Purchases O � PRIp�
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v � 4646 Dakota Street SE
Prior Lake. MN 55372
�INIVESO�
CITY COUNCIL AGENDA REPORT
MEETING DATE: April 8, 2013
AGENDA #: 10C
PREPARED BY: Katy Gehler, Public Works 8� Natural Resources Director
PRESENTED BY: Katy Gehler
AGENDA ITEM: Consider Approval of a Resolution Authorizing 2013 Vehicle and Equipment
Purchases
DISCUSSION: I ntroduction
The purpose of this agenda item is to seek City Council approval for the replace-
ment of the following vehicles and equipment:
1. 1999 Ford F350 w/ Plow (Unit #457)
2. 1999 Ford F350 w/ Plow (Unit #543)
3. 1999 Ford F350 w/ Dump (Unit #545)
Normally this item would be on consent but considering the number of vehicles
we thought it best to address the item as new business for discussion purposes.
Hi StOry
To effectively deliver services in all City Departments including, fire, police and
public works, the City makes two key investments. The investments are: 1) em-
ployees who have the training, knowledge and motivation to accomplish the work;
and 2) the necessary equipment and vehicles to perform the work. The invest-
ment in both areas is critical to getting daily work done quickly, safely, correctly
and in extreme weather conditions. The investment in one area or lack thereof
impacts the other.
Years ago the City would purchase vehicles and heavy equipment using four-
year equipment bonds. Using this funding source, each vehicle and piece of
equipment had to be paid off in four years. As the City grew in its size and
maintenance responsibilities, the number and types of equipment needed in-
creased as well. In the early 1990's the city realized the four year equipment
bonds were not keeping up with the replacement needs. This was demonstrated
by the fact that about 70% of the equipment owned by the City was beyond its
expected life span in hours and/or miles. The result was waste of staff time trying
to start equipment and extensive breakdowns once equipment was in service.
In 1998, the Equipment Replacement Plan became a new element to our five-
year Capital Improvement Program. The Equipment replacement Plan identifies
the City's equipment needs on a long term basis (12 years) and provides a
schedule for identifying acquisitions and replacement of new equipment. The Re-
volving Equipment Fund was created that would fund the program and eliminate
the necessity to issue debt in the form of four year equipment certificates.
The Equipment Replacement Plan is broken down by departments-Fire, Police,
Buildings, Engineering, and Public Works and includes a summary sheet of ex-
penditures and revenue totals with a cumulative fund balance. Each piece of
equipment has been assigned a life expectancy ranging from 6-30 years. By es-
tablishing a regular replacement schedule, service costs and down time are re-
duced.
Current Circumstances
The Equipment Replacement Plan is a tool which provides funds which are likely
to be needed for vehicle and equipment acquisitions and refurbishing. Annually
the plan is reviewed and updated based on the current condition of the City's fleet
and approved as part of the CIP and budgeting process. As per state statute, all
purchases over $20,000 are brought to the Council for final purchase authoriza-
tion.
For 2013 there are four pieces of equipment that are scheduled to be replaced
that require council approval:
1. 1999 Ford F350 w/ Plow (Unit #457)
2. 1999 Ford F350 w/ Plow (Unit #543)
3. 1999 Ford F350 w/ Plow (Unit #545)
4. 1990 Serco E�end-a-Jet (Unit#770)(not on this agenda)
Prior to the recommendation for replacement or addition of vehicles and equip-
ment, the following criteria are analyzed to determine whether a vehi-
cle/equipment should be replaced, how and with what type:
1. Vehicle and Equipment Refurbishing
2. Lease, Rental and Borrowing Options
3. Equipment Zero Value Operations
4. Alternative Fuels
5. Vehicle and Equipment Scheduling Procedures
6. Equipment Partnerships
7. Investigation of Used vs. New
8. Alternative Annual Cost Analysis
The council is being asked to review the three one-ton trucks for purchase ap-
proval to take advantage of the 2013 pricing. The Extend-a-Jet will be brought to
a separate meeting.
The detailed Purchase Analysis for each vehicle is attached.
Conclusion
Based on the City's detailed vehicle and equipment needs and financial analysis,
staff is recommending the purchase of the following:
� 1. 2013 Ford F350 w/ Plow (Unit #457)
2. 2013 Ford F350 w/ Plow (Unit #543)
3. 2013 Ford F350 w/ Plow and Dump (Unit #545)
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ISSUES: 1. 2013 Ford F350 w/ Plow (Unit #457) — Unit 457 is beyond its useful tife
and needs significant repairs to bring it up to a satisfactory safety stand-
ard. Considering the options, replacing the vehicle with a new unit is the
most cost effective.
2. 2013 Ford F350 w/ Plow (Unit #543) — Unit 543 is showing signs of more
significant degradation of the front end components and an increasing risk
of more failures of more significant systems . Significant work will need to
be completed soon in order to maintain this vehicle for its intended use.
Considering the options, replacing the vehicle with a new unit is the most
cost effective.
3. 2013 Ford F350 w/ Plow and Dump (Unit #545) — Unit 545, like unit 543,
is showing signs of degradation of the front end components and more
extensive work on the box is needed to maintain the structural integrity.
Staff compared the various options including two different material types
for the box. Although the initial cost of the chassis with a standard steel
box is less, the ongoing maintenance is more making a new truck chassis
with a stainless steel box the most cost effective.
FINANCIAL The Equipment Replacement Plan programmed and the Revolving Equipment
IMPACT: Fund Budgeted $135,795 for the replacement of the three trucks. The replace-
ment cost for the proposed vehicles is $104,388.85 which is $31,406.15 less than
budgeted. The primary savings were due to excellent bids on the trucks.
ALTERNATIVES: 1. Approve a resolution authorizing the purchase of the proposed vehicles and
equipment and trade in the existing equipment as detailed in this report.
2. Table this agenda item for a specific reason.
3. Deny this agenda item for a specific reason and provide staff with direction.
RECOMMENDED Alternative No. 1
MOTION:
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4646 Dakota Street SE
�INNESO� Prior Lake, MN 55372
RESOLUTION 13-xxx
A RESOLUTION AUTHORIZING REPLACEMENT OF 1999 FORD F-350 w/PLOW (Unit #457),
Motion By: Second By:
WHEREAS, Each year the City Council adopts an Equipment Replacement Plan as part of the Capital
Improvement Program (CIP); and
WHEREAS, The 2013 Equipment Replacement Plan contemplates the replacement of (Unit #457), a
1999 Ford F-350 with Plow
WHEREAS, The 2013 Equipment Replacement Plan programmed $36,601 for the replacement of this
equipment; and
WHEREAS, A detailed needs and financial analysis has been completed and was included in the
agenda report; and
WHEREAS, Quotes were received through the State Purchasing Program.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. Staff is authorized to trade-in the 1999 Ford F-350 w/Plow (Unit #457)
3. Staff is authorized to purchase one 2013 Ford F-350 w/Plow from Wolf for a cost not to exceed
$25,568.63.
4. Funds will be drawn from the Revolving Equipment Fund account # 410-43100-550
PASSED AND ADOPTED THIS 8th DAY OF April 2013.
YES NO
Hedber Hedber
Keene Keene
McGuire McGuire
Morton Morton
Souku Souku
Frank Boyles, City Manager
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4646 Dakota Street SE
'�'�Nxsso`��' Prior Lake, MN 55372
RESOLUTION 13-xxx
A RESOLUTION AUTHORIZING REPLACEMENT OF 1999 FORD F-350 wIPLOW (Unit #543),
Motion By: Second By:
WHEREAS, Each year the City Council adopts an Equipment Replacement Plan as part of the Capital
Improvement Program (CIP); and
WHEREAS, The 2013 Equipment Replacement Plan contemplates the replacement of (Unit #543), the
1999 Ford F-350 w/Plow
WHEREAS, The 2013 Equipment Replacement Plan programmed $36,601 for the replacement of this
equipment; and
WHEREAS, A detailed needs and financial analysis has been completed and was included in the
agenda report; and
WHEREAS, Quotes were received through the State Purchasing Program.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. Staff is authorized to trade-in the 1999 Ford F-350 w/Plow (Unit #543)
3. Staff is authorized to purchase one 2013 Ford F-350 w/Plow from Wolf for a cost not to exceed
$22,373.63
4. Funds will be drawn from the Revolving Equipment Fund account # 410-45200-580
PASSED AND ADOPTED THIS 8th DAY OF April 2013.
YES NO
Hedber Hedber
Keene Keene
McGuire McGuire
Morton Morton
Souku Souku
Frank Boyles, City Manager
O � PRIp�
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U t�
4646 Dakota Street SE
`�tNx�so'� Prior Lake, MN 55372
RESOLUTION 13-xxx
A RESOLUTION AUTHORIZING REPLACEMENT OF 1999 FORD F-350 wIDUMP (Unit #545),
Motion By: Second By:
WHEREAS, Each year the City Council adopts an Equipment Replacement Plan as part of the Capital
Improvement Program (CIP); and
WHEREAS, The 2013 Equipment Replacement Plan contemplates the replacement of (Unit #545), the
1999 Ford F-350 w/plow and dump box; and
WHEREAS, The 2013 Equipment Replacement Plan programmed $62,593 for the replacement of this
equipment; and
WHEREAS, A detailed needs and financial analysis has been completed and was included in the
agenda report; and
WHEREAS, Quotes were received through the State Purchasing Program.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. Staff is authorized to trade-in the 1999 Ford F-350 w/Plow (Unit #545)
3. Staff is authorized to purchase one 2013 Ford F-350 w/Plow from Wolf for a cost not to exceed
$24,140.53.
4. Staff is authorized to purchase one stainless steel truck box from Crysteel for a cost not to exceed
$32,306.16.
5. Funds will be drawn from the Revolving Equipment Fund account # 410-45200-580
PASSED AND ADOPTED THIS 8th DAY OF April 2013.
YES NO
Hedber Hedber
Keene Keene
McGuire McGuire
Morton Morton
Souku Souku
Frank Boyles, City Manager
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� � EQUIPMENT PURCHASE ANALYSIS
V � 4646 Dakota Street SE #457 FoR� F-350 w/ P�ow
Prior Lake, MN 55372
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Vehicle #457 is a one-tor� p�cKUp that is utilized by Street and Utility Staff for transportation, daily duties,
pulling trailers to haul equipment and is equipped with a snow plow for snow removal operations
throughout the winter months. The existing 1999 Ford F-350 4X4 is 14 years old and has accumulated
122,305 miles.
In accordance with the City's purchasing policy, bids were solicited through the State of Minnesota
Purchasing Program for a one ton four wheel drive truck equipped with a snow plow through Ford,
General Motors and Dodge. Because Chevrolet (representing General Motors) does not have 2013 stock
available, they did not respond with a bid. However, the 2013 state bid price on a Chevrolet is $30,800.
In addition to soliciting State bids, staff contacted vendors for quotes that were not part of the State
Purchasing Program. Quotes were received from New Prague Ford and Wolf Motors. The bids/quotes
were as follows:
Wolf New Prague Dodge of Midway Polar
Vendor Motors Ford Burnsville Ford Chevrolet
State Bid State Bid
Model Ford Ford Dod e Ford Chevrolet
Price $29,825.00 $30,067.00 $33,549.00 No Bid No Bid
Trade-in $6,000.00 $2,000.00 $3,000.00
Sub-total $23,825.00 $28,067.00 $30,549.00
License $195.00 $144.50 $160.00
Tax $1,548.63 $1,824.36 $1,985.69
Total $25,568.63 $30,035.86 $32,694.69
Page 1 of 3
EQUIPMENT PURCHASE ANALYSIS
#457 FoR� F-350 w/ P�ow
A detailed eight step analysis is completed for the purchase of all replacement or new equipment. The
analysis below summarizes the results of this process.
I. Refurbishina Analvsis:
The 1999 Ford F-350 w/ Plow (Unit #457) needs $13,614.04 in repairs to be retained and operational
for its intended use. These repairs do not take into account potential engine, transmission and drive
train failures and expenses that may occur if we retain this vehicle. Currently this truck is 14 years old
and has accumulated 122,305 miles. To refurbish and extend the life expectancy of this truck is not
cost effective.
Summa of Needed Re airs for the Existin 1999 Ford F-350 wl Plow
�leeded R�pa�� Co�t ftu`' �!�� � for '�' 7�a1
��P�s . � � ���,a�r" � �r��
Body Repairs 6,872.69 48.5 Hrs 1,697.50 $8,570.19
Mechanical Repairs 2,331.69 14.5 Hrs 507.50 $2,331.69
Plow Repairs 2,712.16 9.0 Hrs 315.00 $2,712.16
Total $11,094.04 72.0 Hrs $2,520.00 $13,614.04
II. Lease/Rental Options:
The City retains this type of vehicle for an expected life span of 12 years. If the City entered into a
lease option on this vehicle, it would result in a long term lease. Long term leases cost more than a j
purchase.
III. Zero Value Operation:
This truck is beyond its life expectancy for its intended purpose and needs significant repairs to
remain safely in use. Initial repairs have been estimated at $13,614.04 with the increased potential
for more significant and costly repairs as the vehicle continues to age. At this time, the City will
receive a trade-in value of $6,000.00. This vehicle cannot continue to be safely used for Public Works
maintenance activities.
IV. Alternative Fuel Analvsis:
The proposed truck is equipped with a 6.2 liter 385 horse power gasoline engine capable of operating
on E-85 gasoline. In the past a majority of our one ton trucks were purchased with a diesel engine.
Recently staff conducted research on gas vs. diesel engines on one ton trucks and smaller. The data
utilized for the study was obtained from past history recorded on our existing City owned trucks and
documentation received from the City's of Eagan, Lakeville and Woodbury. Based on these statistics
the Capital purchase of the vehicle, annual maintenance costs, the price of fuel vs. gasoline, which
includes the 6.2 liter offers results in a substantial savings by purchasing the gasoline engine.
V. Equipment Utilization:
This vehicle is a general use pick-up for the streets and utilities divisions that is utilized daily
throughout the year. In the summer it is used for hauling staff and equipment to various sites to
complete repair and maintenance activities such as crack sealing, pavement milling, sewer jetting,
and watermain breaks. In the winter this vehicle is used for plowing about 20 miles of roads each
event.
VI. Eauipment Partnership:
All City owned trucks are utilized on a daily basis by Public Works Maintenance staff. Partnerships
with other organizations with trucks are not a viable option.
VII. Used Equipment Options:
There were no slightly used trucks found within a 500 mile radius.
VII1. Alternative Annual Cost Analvsis
Based on the options analyzed, the lowest annual cost option is to purchase a new truck
Page 2 of 3
EQUIPMENT PURCHASE ANALYSIS
#457 FoR� F-350 w/ P�ow
Initial Cost Present Annual
tncludes Value Future Life Maintenance Interest Annual Cost
Trade Trade (Years) Cost Rate % A/P Operation
New $26,568.63 $5,000.00 12 $1,454.33 2% 0.09 $3,494.72
Repair $13,614.04 $2,000.00 2 $1,454.33 2% 0.52 $7,435.56
RECOMMENDATION
Based on that analysis, the lowest annual cost option that meets the City's needs is to replace the
existing 1999 Ford F-350 with a new truck. The low quote amount of $25,568.63 was submitted by
Wolf Motors. Staff is recommending this vendor. The 2013 Equipment Plan budgeted $36,601 for this
purchase.
Page 3 of 3
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� � EQUIPMENT PURCHASE ANALYSIS
V � 4b46 Dakota Street SE
Prior Lake, MN 55372 #543 FoR� F-350 w/ P�ow
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Vehicle #543 is a one-ton pickup that is utilized by Park Staff for transportation, daily duties, pulling
trailers to haul equipment and is equipped with a snow plow for snow removal operations throughout the
winter months. The existing 1999 Ford F-350 4X4 is 14 years old and has accumulated 111,868 miles.
In accordance with the City's purchasing policy, bids were solicited through the State of Minnesota
Purchasing Program for a one ton four wheel drive truck equipped with a snow plow through Ford,
General Motors and Dodge. Because Chevrolet (representing General Motors) does not have 2013 stock
available, they did not respond with a bid. However, the 2013 state bid price on a Chevrolet is $30,800.
In addition to soliciting State bids, staff contacted vendors for quotes that were not part of the State
Purchasing Program. Quotes were received from New Prague Ford and Wolf Motors. The bids/quotes
were as follows:
Wolf New Prague Dodge of Midway Polar
Vendor Motors Ford Burnsville Ford Chevrolet
State Bid State Bid
Model Ford Ford Dod e Ford Chevrolet
Price $29,825.00 $30,067.00 $33,549.00 No Bid No Bid
Trade-in $9,000.00 $6,000.00 $3,000.00
Sub-total $20,825.00 $24,067.00 $30,549.00
License $195.00 $144.50 $160.00
Tax $1,353.63 $1,564.36 $1,985.69
Total $22,373.63 $25,775.86 $32,694.69
The total cost for the truck and pertinent equipment is $22,373.63. The 2012 Equipment Plan budgeted
$36,601 for this purchase.
Page 1 of 3
EQUIPMENT PURCHASE ANALYSIS
#543 FoR� F-350 w/P�ow
A detailed eight step analysis is completed for the purchase of ali replacement or new equipment. The
analysis below summarizes the results of this process.
I. Refurbishina Analvsis:
The 1999 Ford F-350 w/ Plow (Unit #544) needs $10,565.35 in repairs to be retained and operational
for its intended use. These repairs do not take into account potential engine, transmission and drive
train failures and expenses that may occur if we retain this vehicle. Currently this truck is 14 years old
and has accumulated 122,305 miles. To refurbish and extend the life expectancy of this truck is not
cost effective.
Summa of Needed Repairs for the Existin 1999 Ford F-350 wl Plow
�� C►�t ft� Pt��ec�d �vs# for Grat� Tt�ai
Part�s ' I.aba�' ' i.a#�r R ' �
Body Repairs $6,371.44 46.5 Hrs $1,627.50 $7,998.94
Mechanical Repairs $1,376.19 11.5 Hrs $402.50 $1,778.69
Plow Repairs $647.72 4.0 Hrs $140.00 $787.72
Total $8,395.35 62.0 $2,170.00 $10,565.35
II. Lease/Rental Options:
The City retains this type of vehicle for an expected life span of 12 years. If the City entered into a
lease option on this vehicle, it would result in a long term lease. Long term leases cost more than a
purchase.
III. Zero Value Operation:
This truck is beyond its life expectancy for its intended purpose and needs significant repairs to
remain safely in use. Initial repairs have been estimated at $10565.35 with the increased potential for
more significant and costly repairs as the vehicle continues to age. At this time, the City will receive
a trade-in value of $9,000.00. To repair the truck to its intended functional use would lose $10,565.35
(repairs) and $9,000.00 (trade-in) for a total of $19,565.35.
IV. Alternative Fuel Analvsis:
The proposed truck is equipped with a 6.2 liter 385 horse power gasoline engine capable of operating
on E-85 gasoline. In the past a majority of our one ton trucks were purchased with a diesel engine.
Recently staff conducted research on gas vs. diesel engines on one ton trucks and smaller. The data
utilized for the study was obtained from past history recorded on our existing City owned trucks and
documentation received from the City's of Eagan, Lakeville and Woodbury. Based on these statistics
the Capital purchase of the vehicle, annual maintenance costs, the price of fuel vs. gasoline, which
includes the 6.2 liter offers results in a substantial savings by purchasing the gasoline engine.
V. Epuipment Utilization:
This vehicle is a general use pick-up for the Parks Division that is utilized daily throughout the year.
In the summer it is used for hauling staff and equipment to various sites to complete repair and
maintenance activities for athletic fields and irrigation systems. In the winter this vehicle is used for
plowing trails and City owned parking lots.
VI. Equipment Partnership:
All City owned trucks are utilized on a daily basis by Public Works Maintenance staff. Partnerships
with other organizations with trucks are not a viable option.
VII. Used Epuipment Options:
There were no slightly used trucks found within a 500 mile radius.
VIII. Alternative Annual Cost Analvsis
Based on the options analyzed, the lowest annual cost option is to purchase a new truck
Page 2 of 3
EQUIPMENT PURCHASE ANALYSIS
#543 FoR� F-350 w/P�ow
Initial Cost Present Annual
Includes Value Future Life Maintenance Interest Annual Cost
Trade Trade (Years) Cost Rate % A/P Operation
New $22,373.63 $5,000.00 12 $1,364.29 2% 0.09 $3,007.83
Repair $10,565.35 $2,000.00 2 $1,364.29 2% 0.52 $5,775.44
RECOMMENDATION
Based on that analysis, the lowest annual cost option that meets the City's needs is to
replace the existing 1999 Ford F-350 with a new truck. The low quote amount of $22,373.63
was submitted by Wolf Motors. Staff is recommending this vendor. The 2013 Equipment
Plan budgeted $36,601 for this purchase.
Page 3 of 3
o �
� � EQUIPMENT PURCHASE ANALYSIS
V � 4646 Dakota Street SE
Prior Lake, MN 55372 #545 FoR� F-350 w/ P�ow
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Vehicle #545 is a one-ton pickup outfitted with a dump/chipper box that is utilized by Park Staff for daily
duties focused on brush/tree management and landscaping activities. This vehicle is also equipped with
a snow plow for snow removal operations throughout the winter months. The existing 1999 Ford F-350
4X4 is 14 years old and has accumulated 89,818 miles.
In accordance with the City's purchasing policy, bids were solicited through the State of Minnesota
Purchasing Program for a one ton four wheel drive truck equipped with a snow plow through Ford,
General Motors and Dodge. Because Chevrolet (representing General Motors) does not have 2013 stock
available, they did not respond with a bid. However, the 2013 state bid price on a Chevrolet is $30,800.
In addition to soliciting State bids, staff contacted vendors for quotes that were not part of the State
Purchasing Program. Quotes were received from New Prague Ford and Wolf Motors. The bids/quotes
were as follows:
Vendor Wolf New Prague Dodge of Midway Ford Polar Chevrolet
Motors Ford Burnsville State Bid State Bid
Model Ford Ford Dod e Ford Chevrolet
Price $32,284.00 $30,067.00 $29,803.00 No Bid No Bid
Trade-in $9,800.00 $2,000.00 $5,000.00
Sub-total $22,484.00 $28,067.00 $24,803.00
License $195.00 $144.50 $160.00
Tax $1,461.46 $1,824.36 $1,612.20
Total $24,140.53 $30,035.86 $26,575.00
Separate from the truck chassis, bids were obtained for the dump/chip box. Two material options were
considered, standard steel and stainless steel. The current box is steel with wooden chipper sides. The
standard steel box historically needs to be resurfaced, primed and painted every 3 years to prevent rust
and maintain the structural integrity of the box. The average cost each time it is repainted is $3,000. In
addition the wood chipper panels have already been replaced due to the increased speed of the 2012
chipper.
A life cycle cost analysis was completed for the two material options. Standard steel components are
expected to last about the life of the pickup, 12 years, which would require 3-4 paint maintenance cycles.
Although the stainless steel box components are about $4,000 more for the initial purchase, they do not
require repainting, have a longer life expectancy, and can either be reinstalled on another truck chassis or
will increase the trade-in value of the new #545 when it is replaced. See item VIII for the annual cost
analysis
Page 1 of 3
EQUIPMENT PURCHASE ANALYSIS
#545 FoR� F-350 w/ P�ow
A detailed eight step analysis is completed for the purchase of all replacement or new equipment. The
analysis below summarizes the results of this process.
I. Refurbishinq Analvsis:
The 1999 Ford F-350 w/ Plow (Unit #545) needs $14,238.41 in repairs to be retained and operational
for its intended use. These repairs do not take into account potential engine, transmission and drive
train failures and expenses that may occur if we retain this vehicle. Currently this truck is 14 years old
and has accumulated 89,818 miles. To refurbish and extend the life expectancy of this truck is not
cost effective.
Summa of Needed Re airs for the Existin 1999 Ford F-350 wl Plow
R�� �#� P�� Cost ft� G� ��a1
` ��' ' t,�' ' �r
Body Repairs $5193.65 22.0 Hrs $770.00 $5,963.65
Mechanical Repairs $1,376.19 13.5 Hrs $402.50 $2,233.69
Plow Repairs $5,901.07 4.0 Hrs $140.00 $5,936.07
Total $12,855.91 39.5 Hrs $1,382.50 $14,238.41
II. Lease/Rental Options:
The City retains this type of vehicle for an expected life span of 12 years. If the City entered into a
lease option on this vehicle, it would result in a long term lease. Long term leases cost more than a
purchase.
III. Zero Value Operation:
This truck is beyond its life expectancy for its intended purpose and needs significant repairs to
remain safely in use. Initial repairs have been estimated at $14,238.41 with the increased potential
for more significant and costly repairs as the vehicle continues to age. At this time, the City will
receive a trade-in value of $9,800.00. To repair the truck to its intended functional use would lose
$14,238.41 (repairs) and $9,800.00 (trade-in) for a total of $24,038.41.
IV. Alternative Fuel Analvsis:
The proposed truck is equipped with a 6.2 liter 385 horse power gasoline engine capable of operating
on E-85 gasoline. In the past a majority of our one ton trucks were purchased with a diesel engine.
Recently staff conducted research on gas vs. diesel engines on one ton trucks and smaller. The data
utilized for the study was obtained from past history recorded on our existing City owned trucks and
documentation received from the City's of Eagan, Lakeville and Woodbury. Based on these statistics
the Capital purchase of the vehicle, annual maintenance costs, the price of fuel vs. gasoline, which
includes the 6.2 liter offers results in a substantial savings by purchasing the gasoline engine.
V. Equipment Utilization:
This vehicle is a pick-up for the Parks Division that is utilized daily throughout the year. In the
summer it is used for brush/tree management and landscaping activities such as boulevard tree
trimming, tree removals, mulching, trail backfilling/shouldering, and soil placement. In the winter this
vehicle is used for plowing and hauling snow from the downtown and public parking lots.
VI. Equipment Partnership:
All City owned trucks are utilized on a daily basis by Public Works Maintenance staff. Partnerships
with other organizations with trucks are not a viable option.
VII. Used Eauipment Options:
There were no slightly used trucks found within a 500 mile radius.
VIII. Alternative Annual Cost Analvsis
Based on the options analyzed, the lowest annual cost option is to purchase a new truck
Page 2 of 3
EQUIPMENT PURCHASE ANALYSIS
#545 FoR� F-350 w/ P�ow
Present
Initial Cost Value Annual Annual
Includes Future Life Maintenance Interest Equipment
Equipment Trade $ Trade $ (Years) Cost $ Rate % A P Cost $
New - Standard Steel Box $52,846.74 $6,000.00 12 $2,457.14 2% 0.0946 $6,888.84
New - Stainless Steel Box $56,446.69 $8,000.00 12 $1,457.14 2% 0.0946 $6,040.20
Refurbish ' $14,238.41 $2,000.00 2 $2,457.14 2% 0.5150 $8,759.92
RECOMMENDATION
Based on that analysis, the lowest annual cost option that meets the City's needs is to replace the
existing 1999 Ford F-350 with a new truck and stainless steel box. The low quote amount of
$24,140.43 was submitted by Wolf Motors for the truck chassis and $32,306.16 by Crysteel for the
box for a total purchase price of $56,446.59. Staff is recommending these vendors. The 2013
Equipment Plan budgeted $62,593 for this purchase.
Page 3 of 3