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HomeMy WebLinkAbout9C 2014 Vehicle and Equipment Purchase 04 PRI°4' rt 4646 Dakota Street SE Prior Lake. MN 55372 4/INNEs01 CITY COUNCIL AGENDA REPORT MEETING DATE: MAY 27, 2014 AGENDA #: 9C PREPARED BY: KATY GEHLER, PUBLIC WORKS & NATURAL RESOURCES DIRECTOR DOUG HARTMAN, FIRE CHIEF PRESENTED DOUG HARTMAN & KATY GEHLER BY: AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING 2014 VEHICLE AND EQUIPMENT PURCHASES DISCUSSION: Introduction This agenda item would normally on the consent agenda. However since the staff is proposing to make certain replacements with upgraded equipment for better utilization, the item is part of new business. The purpose of this agenda item is to seek City Council approval for the replacement of the 2004 Ford F- 150 (Unit #9201) Assistant Chief's Truck and to consider vehicle needs for the new Assistant Chief position. This is the final vehicle and equipment replace- ment contemplated by the 2014 Equipment Replacement Plan. History In 1998, the Equipment Replacement Plan was created to identify and budget for equipment and vehicles that need replacement due to age and wear, or for the addition of equipment to address growth. Annually the plan is reviewed and updated based on the current condition of the City's fleet and adopted by the City Council as part of the Capital Improvement Program. Each piece of equipment identified in the Plan is analyzed for replacement prior to a decision being made on whether or not to move forward with a purchase. As per state statute, all purchases over $20,000 are brought to the Council for final purchase authorization. Current Circumstances For 2014, there are seven pieces of equipment that are scheduled to be re- placed that require council approval. 1. 2001 Cat Loader with plow and wing (Unit #789) 2. 1999 Sterling L8511 Dump w/ plow and wing (Unit #466) 3. 1999 Chevrolet Suburban (Unit #399) 4. 1996 Chevrolet C1500 (1/2 Ton) (Unit #540) 5. 2001 Dodge 3500 w /dump and plow (Unit #547) 6. 2003 Ford F -350 (1 Ton) with plow (Unit #548) 7. 2004 Ford F -150 (Unit #9201) 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 purchase of the remaining piece of equipment; Unit #9201 and consider vehicle needs within the department. The detailed Purchase Analysis for #9201 is attached. In addition to the replacement of #9201, The council is being asked to consider the addition of another Assistant Chief's truck in 2014. As a result of the Fire Department Training Captain resigning from his position in April 2013, an evaluation of the position and Fire Department needs were assessed. A restructuring of Fire Department Officer Staff was identified and approved in the 2014 budget. Officer selection was just completed. An addi- tional Assistant Chief/Training was added in place of the former Training Cap- tain position. Budget impact is an increase of $750 annually in personnel costs and the need for an additional vehicle to be purchased this year. The four wheel drive pick -up truck is selected because it is used as multi- purpose vehicle year round. In addition to first response, these vehicles are used periodically for on scene utility vehicles for hauling spent equipment i.e. used, dirty fire hose and drop tanks back to the fire stations. All three Assistant Chiefs will utilize their trucks on a regular basis for training events and they will also haul event supplies and tow boats and utility trailers periodically. There are two options for filling the vehicle needs. The first would be retaining the 2004 Ford F -150 (Unit #9201) instead of trading it in on the purchase of the replacement truck. This vehicle would then be scheduled for replacement in 2015. Due to the engine and rear end symptoms, it is not recommended to keep this truck in our fleet (see purchase analysis). In addition, the 2015 model of the Ford F -150 will be changing to an aluminum body which is expected to increase the cost at least $2,000 or 6.5 %. The second option would be to lev- erage savings from other 2014 purchases and purchase two trucks this year. Currently the Assistant Chief/Training is using a utility pick -up truck from Station 1 on a temporary basis. It has a large V -10 engine because it is utilized in nu- merous ways including water rescues, pulling the boat and hauling trailers and equipment. Conclusion Based on the City's detailed vehicle and equipment needs and financial analy- sis, staff is recommending the purchase of the following: 1. 2014 Ford F -150 from Wolf Motors for $22,924.67 2. 2014 Ford F -150 from Midway Ford for $30,420.19 ISSUES: For each of the 460 plus called the department responds to annually, the Chief or one of the Assistant Chiefs is responsible for first response. These are among the most seasoned officers on the department capable of sizing up the incident, cancelling or relaying requests for additional resources. An additional Assistant Chief was needed to help guarantee a Chief Officer is available for emergency response 24/7. Chief Officers to date find it very chal- lenging at times with their personal and work schedules. Chief Officers work together to ensure one of them is available at all times for immediate response to an emergency call. Adding a third Assistant Chief helps spread the afterhours and weekend com- mitments. All Chief Officers are now scheduled approximately once per month (now every four weeks instead of 3 weeks) to respond Friday through Sunday and periodically through the week dependent on all of their schedules. Our approach is commonplace in the fire service and particularly important rec- ognizing that our service area is 72 square miles making it critical that the cor- rect resources are dispatched to each scene with minimum delay. FINANCIAL The Equipment Replacement Plan programmed and the Revolving Equipment IMPACT: Fund Budgeted $36,050 for the replacement of Unit #9201. The replacement cost for the proposed truck is $28,823.75 which is $7,226.25 less than budget- ed. If the Council desires to address the vehicle needs of the Fire Department with a half -ton four wheel drive truck, the cost of the additional truck is $36,270.19. This second vehicle could be purchased now by reallocating the $74,000 in savings from the other 2014 fleet purchases for this purpose. ALTERNATIVES: 1. Approve individual resolutions authorizing the purchase of the proposed ve- hicles 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: o 0 PRIO c Dakota Street SE ` Prior Lake, MN 55372 RESOLUTION 14 -xxx A RESOLUTION AUTHORIZING THE TRADE IN AND REPLACEMENT OF UNIT #9201, A 2004 FORD F -150 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 2014 Equipment Replacement Plan contemplates the replacement of Unit #9201, a 2004 Ford F -150; and WHEREAS, The 2014 Equipment Plan programmed $36,050 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 as well as from local vendors and are incorporated in the agenda reports. 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. The City Council hereby authorizes the trade -in of Unit #9201, a 2004 Ford F -150. 3. The City Council hereby authorizes the purchase of a 2014 Ford F -150 from Wolf Motors in the amount of $22,973.75. 4. Funds will be drawn from #101 - 42200 -550. PASSED AND ADOPTED THIS 27th DAY OF May 2014. VOTE Hedberg Keeney McGuire Morton Soukup Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager O. PR% trr 4646 Dakota Street SE ` Prior Lake, MN 55372 RESOLUTION 14 -xxx A RESOLUTION AUTHORIZING THE PURCHASE OF A 2014 FORD F -150 Motion By: Second By: WHEREAS, In April 2013, an evaluation of the Training Captain position and Fire Department needs were assessed after a staffing vacancy; and WHEREAS, A restructuring of Fire Department Officer Staff was identified and approved in the 2014 budget; and WHEREAS, An additional Assistant Chief/Training was added in place of the former Training Captain position; and WHEREAS, An additional Assistant Chief's truck was identified as a necessary resource; and WHEREAS, Quotes were received through the State Purchasing Prgram as well as from local vendors and are incorporated in the agenda reports. 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. The City Council hereby authorizes the purchase of a 2014 Ford F -150 from Midway Ford in the amount of $30,420.19. 3. Funds will be drawn from #101 - 42200 -550. PASSED AND ADOPTED THIS 27th DAY OF May 2014. VOTE Hedberg Keeney McGuire Morton Soukup Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager o Piti(3.N. EQUIPMENT PURCHASE ANALYSIS Maintenance Center #9201 FORD F -150 u 17073 Adelmann Street SE Prior Lake, MN 55372 ` ,i'''4\ # 9 !F -:, a:. y , /z ,. Vehicle #9201 is one of two half -ton pickups that are utilized by the Fire Department for daily duties as an Assistant Chiefs Vehicle. These trucks are used on a regular basis for first response and training events. In addition, these vehicles are multi - purpose and used periodically as on scene utility vehicles for hauling spent equipment (i.e. used, dirty fire hose and drop tanks) back to the fire stations. The existing 2004 Ford F -150 is 10 years old and has accumulated 81,213 miles. These trucks see hard engine wear as they are expected to respond during emergency situations without acclimating to the temperature conditions. Neither this truck nor the 2005 F -150 scheduled for replacement in 2015 were equipped with block heater or remote start to allow the driver to prepare the vehicle in the winter. This truck was equipped with an engine that is known to have issues with the cylinders /pistons. In 2012 the engine was replaced with about 60,000 miles. The existing engine has about 20,000 miles on it and is starting to show similar symptoms. In addition to the engine issues, the rear limited slip differential has been showing symptoms of failure. Lastly, this truck has several body issues including rusting or rotting of the doors and cab corners. 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. REFURBISHING ANALYSIS The 10 year old truck needs $14,600 in repairs to be retained and operational for its intended use which include addressing the engine issues. These repairs do not take into account potential transmission and drive train failures and expenses that may occur if we retain this vehicle. Staff believes that to refurbish and extend the life expectancy of this vehicle is not cost effective based on the current condition and the annual cost analysis completed in VII. www.cityofpriorlake.com Phone 952.447.9896 / Fax 952.440.9678 REFURBISHING COSTS Body Repair $6,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mechanical Repair $3,400 Engine Repair $5,200 Transmission Repair * ..................................... ............................... $3,500 TOTAL 2014 REFURBISHING $18,100 * Repairs may be needed due to age of vehicle II. LEASE /RENTAL OPTIONS The City retains this type of vehicle for an expected life span of 10 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 OPERATIONS This truck is at its life expectancy for its intended purpose and needs significant repairs to remain safely in use. Initial repairs have been estimated at $9,400 with the increased potential for more significant and costly repairs as the vehicle continues to age. The City will obtain a $7,900 trade -in value. IV. ALTERNATIVE FUEL ANALYSIS The proposed truck is equipped with a 5.0 liter 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. In 2011, 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 Cities of Eagan, Lakeville, and Woodbury. Based on these statistics the Capital purchase of the vehicle, annual maintenance costs, the price of diesel vs. gasoline, results in a substantial savings by purchasing the gasoline engine. V. EQUIPMENT UTILIZATION The pickup truck is a multi - purpose vehicle. In addition to first response, these vehicles are used periodically for on- scene utility vehicle for hauling spent equipment (used and dirty hose and drop tanks) back to the station. All three Assistant Chiefs will utilize their trucks on a regular basis for training events and they will also haul event supplies and tow boats and utility trailers periodically. VI. EQUIPMENT PARTNERSHIP This vehicle is used daily by staff year round therefore partnerships with other organizations is not a viable option. VII. USED EQUIPMENT OPTIONS No used trucks equipped for emergency response and low miles are available. VIII. ALTERNATIVE ANNUAL COST ANALYSIS In accordance with the City's purchasing policy, bids were solicited through the State of Minnesota Cooperative Purchasing Venture (CPV) for a half -ton four wheel drive truck through Ford, General Motors and Dodge. In addition to soliciting State bids, staff contacted vendors for quotes that were not part of the CPV. Quotes were received from Wolf Motors, Nelson Auto, and New Prague Ford. Note that Public Safety vehicles and equipment are exempt from tax and licensing fees. Vendor New Prague Midway Ford Wolf Motors Ford (State Bid) Nelson Auto Make Ford Ford Ford Ford .......................................................................................................................................................................................................................................................................................................................... ............................... Model 2014 F -150 2014 F -150 2014 F -150 2014 F -150 Price $30,873.75 $30,755.50 $30,420.19 $31,501.41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trade -in $ 7,900 $7,000 $4,500 $ 4,200 Total $22,973.75 $23,755.50 $25,920.19 $27,301.41 Separate from the truck, lights and other safety equipment will be purchased and installed in -house to outfit the truck for emergency response. The cost of the parts is estimated to be $5,850. The total cost for replacing Unit #9201 is $28,823.75. ALTERNATIVE ANNUAL COST ANALYSIS Initial Cost Present Value Life Maintenance Interest Annual Cost (inc. trade) Future Trade (Years) _ Costs Rate % A/P Operation New $28,823.75 $5,000.00 10 $1,844.20 2% 0.1113 $4,495.78 Refurbish $14,600.00 $2,000.00 2 $1,844.20 2% 0.5150 $8,333.20 RECOMMENDATION Based on that analysis, the lowest annual cost option that meets the City's needs is to replace the existing 2004 Ford F -150 with a new truck. The low quote amount of $22,973.75 was submitted by Wolf Motors. Staff is recommending this vendor. With appurtenant equipment the total cost of the truck is $28,823.75. The 2014 Equipment Plan budgeted $36,050 for this purchase.