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HomeMy WebLinkAbout5F - Fire Truck Purchase .' CITY COUNCIL AGENDA REPORT DATE: AGENDA #: PREPARED BY: SUBJECt: MAY 18,1998 SF GREG ILKKA, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER CONSIDER APPROVAL OF RESOLUTION 98-XX APPROVING THE PURCHASE OF TWO 1999 S TON SINGLE AXLE TRUCKS AND APPURTENANT EQUIPMENT. DISCUSSION: HISTORY An equipment matrix was adopted by Council on May 19, 1997 as part of the 1998-2002 Capital Improvements Program. Included in 1998 is $180,600 for the purchase of two new 5 ton single axle trucks with appurtenant equipment (dump box, plows, wings, sanders). CURRENT CIRCUMSTANCES Both trucks will be replacing existing equipment. One of the trucks to be replaced is truck #7, a gas powered 1983 International 5 ton with dump box, front plow, and sander. The other truck to be replaced is truck #15, a diesel powered 1984 International 5 ton with dump box, front plow, wing, and sander. Truck #15 is currently used by the Parks Maintenance department. It will be replaced by one of the older Public Works trucks. Both of these trucks, being 14- 15 years old are in poor condition, have frequent breakdowns and have become unreliable. They barely pass their annual safety inspections for license renewal. The appurtenant equipment is also worn and requires replacement. Further, the trade value of these trucks is enhanced with the equipment. ISSUES Purchase of the trucks and equipment is proposed through the State of Minnesota Cooperative Purchasing Agreement 162~ Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER T' r " FINANCIAL IMPACTSI COST RECOVERY: ALTERNATIVES: RECOMMENDED DUMPS.DOC (State Bid). Through this agreement, the State of Minnesota provides a list of bids for equipment which individual agencies can purchase. This allows cities to comply with statutory purchasing requirements while saving money and time in the bid process. Boyer Trucks has the current state bid for the trucks. J-Craft has the current state bid for the appurtenant equipment which includes dump boxes, front plows, wings and sanders. The trucks are manufactured by Sterling (formerly Ford) with 250 hp diesel engines and six speed automatic transmissions. The automatic transmission is a must for snow plowing in the City environment. The boxes are manufactured and installed by J-Craft while the snow equipment is manufactured by Falls, and installed by J-Craft. CONCLUSION The two trucks ready for replacement have exceeded their useful life of ten years. To continue to provide swift snow and ice control services on the growing miles of city streets requires dependable up to date equipment. The funding source for this vehicle is the Equipment Revolving Fund as outlined in the 1998-2002 C.I.P. Equipment Matrix. As shown in the Equipment Replacement Matrix $180,600 is budgeted for these trucks and equipment. The table at the end of this report summarizes cost recovery. The proposed acquisition costs include state sales tax. There are two alternatives for the City Council to consider: 1. Approve Resolution 98-XX authorizing expenditure of $174,716.62 plus actual license and registration fees from the Equipment Revolving Fund for the purchase of two 5 ton single axle trucks and appurtenant equipment. 2. Deny this item for a specific reason and provide staff with direction. MOTION: A motion and second to approve as part of the Consent Agenda Resolution 98-XX authorizing expenditure of $174,716.62 plus actual license and registration fees from the Equipment Revolving Fund for the purchase of two 5 ton single axle trucks and appurtenant equipment. REVIEWED BY: T RECOVERY SUMMARY Existina Eauipment Replacement Eauipment 1. Equipment Description: 5 Ton Plow Trucks 5 Ton Plow Trucks BoxlPlowlWing/Sander BoxlPlowlWing/Sander 2. Equipment Condition: Poor New 3. Equipment Miles 73,000/99,000 0 4. Primary Use: Snow Plowing/ Material Same Hauling 5. Useful LifelDepreciation Term: 10 years 10 years 6. Equipment Age: 14&15 years o years 7. Acquisition Date: 1983 & 1984 1999 8. Acquisition Cost: $18,260/$27,537 $87,550.54/$87,166.08 9. Matrix Budget Amount: N/A $180,600 10. Depreciation: $18,260/$27,537 $0 11. PresentlTrade-in Value: $8,000/$16,500 $87,550.54/$87,166.08 12. Projected Equipment N/A 10 years Retention Schedule: DUMPS.DOC r . T RESOLUTION 98-XX AUTHORIZING EXPENDITURE OF $174,716.62 PLUS ACTUAL LICENSE AND REGISTRATION FEES FROM THE EQUIPMENT REVOLVING FUND FOR THE PURCHASE OF TWO 5 TON SINGLE AXLE TRUCKS AND APPURTENANT EQUIPMENT MOTION BY: SECOND BY: WHEREAS, the City adopted a Revolving Equipment Fund on May 19,1997, and WHEREAS, the adopted Revolving Equipment Fund included purchase of two 5 ton single axle trucks with appurtenant equipment in 1998, and WHEREAS, the City can take advantage of the Minnesota Cooperative Purchasing Agreement (State Bid) for the purchase of these trucks and equipment. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, the City Council hereby authorizes expenditure of $174,716.62 plus actual license and registration fees from the Equipment Revolving Fund for the purchase of two 5 ton single axle trucks and appurtenant equipment including dump boxes, front plows, wings and sanders through the Minnesota Cooperative Purchasing Agreement. Passed and adopted this 18th day of May, 1998. YES NO Mader Kedrowski Petersen Schenck Wuellner Mader Kedrowski Petersen Schenck Wuellner {Seal} Frank Boyles City Manager City of Prior Lake DUMPS.DOC