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Home My WebLink About5E Vehicle Purchase Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JANUARY 16, 2018 AGENDA #: 5E PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER PRESENTED BY: JASON WEDEL AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE PURCHASE OF 2018 EQUIPMENT AS SET FORTH IN THE CAPITAL IMPROVEMENT PROGRAM DISCUSSION: Introduction The purpose of this agenda item is to seek City Council approval to purchase a single axle plow truck, a fire chief squad car, a parks department pick-up truck, and a street sweeper. History In 1998 the Equipment Replacement Plan was created as a budging tool to assist in financial planning for major expenditures and to help moderate the annual fleet replacement budget. The goal is to replace the equipment in a timely and cost-effective manner to maximize the productivity of city personnel. The plan is reviewed annually 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 (CIP). The purchases for the coming year are incorporated into the annual budget requests and adopted by Council in December. As per state statute, all purchases over $20,000 are brought back to Council for final purchase authorization. Current Circumstances For 2018 there are four pieces of equipment programmed to be replaced that require council approval (>$20,000). They include: Existing Unit #518, 2002 Single Axle Plow Truck Unit #541, 2006 Chevy Silverado Unit #9200, 2010 Ford Explorer Unit #471, 2006 Tymco Sweeper 2 Replaced with: Unit #518 The existing plow is a 2002 Sterling. The City’s Equipment Replacement plan recommends replacement of this vehicle every 12 years. This truck is therefore 4 years of year around usage beyond the recommended replacement schedule. The condition of the existing truck is poor and it is difficult to obtain replacement parts. We received two bids for the base chassis. The first bid was for $92,460.86 less a trade in for the old truck of $21,748 for a total bid of $70,712.86. The second bid was for $93,184.65 less a trade in for the old truck of $21,500 for a total bid of $71,684.65. We bid out separately the plow, pre-wetting equipment, and other appurtenant equipment. We received two bids for this equipment as well. The first bid was for $135,225 and the second bid was for $133,537. Utilizing the low bid for the base chassis and the low bid for the snow removal equipment, the total cost of the truck is as follows: 2018 Base Truck $70,712.86 Plow, Wing & Controls $133,537 Total $204,249.86 2018 Budget = $199,820 Over budget by ($4,429.86) Unit #541 This unit is the pick-up truck utilized by our Park Foreman. We are replacing the ½ ton pick-up with another ½ ton pick-up. The City’s Equipment Replacement Plan recommends replacement of this vehicle every 10 years. This vehicle is 12 years old and 2 years beyond the recommended replacement. This truck is showing its age and is requiring an increasing amount of maintenance. The current truck is an extended cab and we are proposing to replace it with a four door truck. The Park Foreman utilizes this vehicle to drive additional City employees to various conferences, classes, and meetings outside of the City. By having a four door truck we can have 5 staff members ride together rather than having to utilize two separate vehicles. This is particularly important in the summer when the city hires numerous seasonal employees who need to get to work site location throughout the city. 3 We received two bids for the new ½ ton pickup. The first bid was for $35,297.13 less a trade in for the old truck of $8,500 for a total bid of $26,797.13. The second bid was for $35,023.99 less a trade in of $3,700 for a total bid of $31,323.99. We are recommending going with the low bid of $26,797.13. 2018 Ford F150 = $26,797.13 2018 Budget = $31,724 Under budget by $4,926.87 Unit #9200 This unit is the 2010 Ford Explorer currently used by the Fire Chief. The City’s Equipment Replacement Plan recommends replacement of this vehicle every 8 years. This vehicle will be 8 years old this year and is therefore due for replacement. In addition, this vehicle is a standard issue Ford Explorer that is comparable to what a citizen would purchase. It was not modified in any way for high speed driving. This has been an issue for the Fire Chief when responding to emergency calls. The proposed replacement vehicle is the same Ford Interceptor that are being used by our police department. This will provide a safer vehicle for high speed use. It is also consistent with our other Ford Interceptors so it is more efficient to maintain by our mechanics. At the time of bidding we had difficulty getting much for trading in the existing Ford Explorer. Rather than get hardly anything for it we are proposing to shift that vehicle to the Building Inspections department. Currently we are utilizing a 2009 Ford Focus in Building Inspections and it has been a constant maintenance issue. This vehicle is not built for driving around construction sites. The City’s current policy recommends ½ ton pickup trucks for Building Inspections moving forward. The Ford Focus is currently scheduled to be replaced next year. By trading in the Focus and moving the Explorer to Building Inspections we can achieve two objectives: 1. Provide a vehicle designed for the intended use., 2. delay the purchase of the pickup truck for several more years. The Ford Interceptor SUV is included in the State Bid contract so it was not necessary to get a second bid. 2018 Ford Police Interceptor (State Bid) = $35,235.45 2018 Budget = $35,020 Over budget by ($215.45) Unit #471 The existing street sweeper is a 2007 Tymco. The City’s Equipment Replacement Plan recommends replacement of this vehicle every 10 4 years. This vehicle will be 11 years old this year and is in need of replacement. Like our plow trucks, sweepers operate in some of the worst conditions possible. The dust created by the unit wears both upon internal and external components of the vehicle. This is also a high volume usage vehicle since the city adopted the policy of high frequency street sweeping around the lakes to minimize particulate and sodium pollution. We test drove two different sweepers this fall to see which brand performed the best. Both sweepers utilize regenerative air. One sweeper was a Tymco and the other was an Elgin. The Tymco was a fairly simple machine, easy to maintain and required less day to day maintenance. The Elgin required daily greasing, but was easier to clean out and had similar controls to the City’s other sweeper which is also an Elgin. Both sweepers did a comparable job of sweeping debris from the streets. The price for the Tymco is $191,303.48 and the price for the Elgin is $199,134.77. Due to the ease of maintenance and the lower price, the recommendation is to proceed with the purchase of the Tymco. 2018 Tymco Sweeper = $191,303.48 2018 Budget = $210,120 Under budget by $18,816.52 Conclusion The Council is being asked to authorize the purchase of the equipment and the disposal of the old equipment by adoption of the attached resolution. ISSUES: City councils over time have made it clear to the staff that equipment should not be replaced until it is truly worn out and undependable. The staff has internalized this philosophy as can be seen by the fact that we retain most equipment past its recommended life span. However that also means that when we ask for replacement it is because our experience demonstrates the equipment has become an impediment to rather than an instrument facilitating employee productivity. FINANCIAL IMPACT: The Council approved the 2018 budgets and tax levy as part of the December 4th, 2017 City Council agenda. This authorization for purchase of this equipment is in accordance with the 2018 budget as presented for the fleet replacement program as approved in the 2018 CIP. The 2018 Equipment Replacement Plan (CIP) and the 2018 revolving Equipment Fund budgeted $476,684 for the replacement of these vehicles including appurtenant equipment. The actual replacement cost for this equipment is $457,585.92 which is $19,098.08 below budget. This does not include the proposed donation from the Prior Lake Spring Lake Watershed District (PLSLWD). The City will request the $10,000 donation from the PLSLWD once the sweeper is received. 5 ALTERNATIVES: 1. Motion and second to approve a resolution as part of the consent agenda authorizing the purchase of the four pieces of equipment and appurtenant equipment as detailed in this report. 2. Motion and second to remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 18-___ A RESOLUTION AUTHORIZING THE PURCHASE OF 2018 EQUIPMENT INCLUDING A SINGLE AXLE DUMP TRUCK WITH PLOW, A SPORTS UTILITY VEHICLE, PICK UP AND A STREET SWEEPER 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 2018 Equipment Replacement Plan contemplates the replacement of Unit # 518-Single Axle Dump Truck, Unit #9200-Fire Chief Vehicle, Unit # 541-Parks Pick- Up and Unit #471-Sweeper WHEREAS, The 2018 Equipment Plan programmed $476,684 for the replacement of these vehicles and appurtenant equipment and; WHEREAS, Quotes were received and are incorporated in the agenda report. 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 dispose of Unit #518, Unit #9200, Unit #541 and Unit #471 3. Staff is authorized to purchase the following 2018 model year equipment: a single axle plow truck with accessory equipment, a sports utility vehicle, a pick-up truck and a street sweeper. 4. Funds will be drawn from the Revolving Equipment Fund Passed and adopted by the Prior Lake City Council this 16th day of January 2018 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager