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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
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(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:
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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
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