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HomeMy WebLinkAbout5H 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: MARCH 4, 2019 AGENDA #: 5H PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER PRESENTED BY: JASON WEDEL AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE PURCHASE OF 2019 EQUIPMENT AS SET FORTH IN THE CAPITAL IMPROVEMENT PROGRAM GOAL AREA AND OBJECTIVE: DISCUSSION: High-Value City Services 1. Establish financial stability for all funds. Introduction The purpose of this agenda item is to seek City Council approval to purchase a skid loader, a 16’ lawn mower, a Building Inspection department pick-up truck, a tandem axle plow truck, a Street and Sewer department pick-up truck, a Street and Sewer department diesel crew cab pick up truck and 3 marked squad SUV’s. History In 1998 the Equipment Replacement Plan was created as a budgeting 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. 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 the City’s purchasing policy, all purchases over $20,000 are brought back to Council for final purchase authorization. Current Circumstances For 2019 there are nine pieces of equipment programmed to be replaced that require council approval (>$20,000) Existing: Unit #781, 2011 Catepillar Skid Loader Unit #504, 2012 Toro 16’ Lawn Mower Unit #395, 2014 Ford Interceptor Unit #465, 2003 9-Ton Tandem Axle Dump Truck Unit #494, 2009 1-Ton Pick Up Truck Unit #453, 2009 1-Ton Pick Up Truck 2 Unit #1014, 2014 Dodge Charger Unit #715, 2015 Ford Interceptor SUV Unit #815, 2015 Ford Interceptor SUV Replaced with: Unit #781 This existing skid loader is a 2011 Catepillar. The City’s Equipment Replacement plan recommends replacement of this piece of equipment every 6 years. This skid loader was due for replacement last year and was pushed to 2019, so it is 1 year beyond the recommended replacement schedule. This skid loader gets a lot of use and is in poor condition. We received two bids for replacement of the skid loader. The first bid was from Lano Equipment and was for a Bobcat skid loader at a cost of $52,528.95. The second bid was from Ziegler for a Catepillar skid loader at a cost of $55,549. Staff recommends proceeding with the purchase of the Catepillar skid loader from Zeigler. Though it is slightly higher in cost, the Caterpillar skid loader works with the other attachments the City already has including the blacktop mill and snowblower and the Bobcat would not work with those attachments so new attachments would need to be purchased. The Catepillar also comes with a torsion suspension axle that provides for a much better track system by giving it more flexibility. This is important for working on steep slopes such as doing work around storm water ponds. 2019 Budget = $66,518 Under budget by $10,969 Unit #504 The existing 16’ lawn mower is a 2012 Toro. The City’s Equipment Replacement plan recommends replacement of this piece of equipment every 8 years, so this is piece of equipment is being replaced 1 year earlier than recommended in the plan. This lawn mower is used to mow the athletic fields in the City’s parks and gets very heavy use. It is in poor condition and needs to be replaced. Included in the City’s 2019 budget was the replacement of a John Deere tractor that is also used for turf maintenance. That tractor is in acceptable condition and can be used for another season. Staff is recommending that the 16’ lawn mower be replaced this year and the John Deere tractor be pushed to 2020 for replacement. The 16’ lawn mower is slightly less expensive than the John Deere tractor, so by switching them it will decrease the equipment expenditures in 2019 and increase them in 2020. We received two bids for replacement of the 16’ lawn mower. The first bid was from MTI Distributing and the second was from Turfwerks. The bid from MTI Distributing was for a Toro 16’ lawn mower and the bid from 3 Turfwerks was for a Jacobson 16’ lawn mower. MTI’s bid came in at $90,834.68 and Turfwerk’s bid was $91,177.16. Staff recommends proceeding with the purchase of the Toro 16’ lawn mower from MTI Distributing at a cost of $90,834.68. 2020 Budget = $93,975* Under Budget = $3,140.32 *The actual budget in 2019 was for the John Deere tractor at $123,741 which has now been pushed to 2020. The budget for the 16’ lawn mower in 2020 was $93,975 Unit #395 This unit is a former Police department vehicle. When it was no longer suitable for use as a police vehicle it was moved to the Building Inspection department for use by one of our building inspectors. This vehicle has been used as a building inspector vehicle for the past two years. The current mileage is 107,107. The 2019 Equipment replacement plan included two new pick ups for the Building Inspection department. One pick up to replace the repurposed Police Interceptor and another pick up to replace the Ford Focus that is being used by the other building inspector. In 2018 it became necessary to replace the Fire Chiefs Ford Explorer because it had become unsafe for use in responding to fire calls at high speeds. That vehicle was replaced and was repurposed for the Building Inspection department. This has allowed the City to delay purchasing another pick up truck for the Building Inspection department for another year. The City received two bids for a Ford F150 pick up truck. The first bid was from Wolf Motors for $30,539.10 and the second bid was from Midway Ford for $31,482.66. The bid from Midway Ford was part of the Minnesota State bid for 2019. Staff recommends moving forward with purchasing the Ford F150 pick up truck from Wolf Motors for $30,539.10. 2019 Budget = $29,705 Over budget by ($834.10) Unit #465 This unit is a tandem axle dump truck. It is a 2003 International. The City’s Equipment Replacement plan recommends replacement of this vehicle every 12 years. This vehicle has been pushed back several years and is in need of replacement. The current mileage is 132,823. These trucks do not come standard with plow equipment. The City has to purchase the base truck and then have a separate vendor install the plow 4 equipment. The City received two bids for the base truck and two bids for the plow equipment. The first bid for the base truck came from Boyer Trucks for a Freightliner tandem axle truck at $82,909.53. The second bid came from Harrison Truck Center for a Freightliner tandem axle truck at $95,397.43. The first bid for the plow equipment came from Tow Master at $151,693 and the second bid came from TBEI at $146,407. The bid from TBEI was $5,286 less than Tow Master; however, staff is recommending that the plow equipment be purchased from Tow Master. The last plow truck the City purchased that was outfitted by TBEI for plow equipment has had numerous on-going issues. These issues have cost the City considerable time and money, well in excess of the $5,286 cost difference. Staff recommends purchasing the truck from Boyer Trucks for $82,909.53 and the plow equipment from Tow Master for $151,693.00. Truck $ 82,909.53 Plow Equipment $151,693.00 Total $234,602.53 2019 Budget = $235,732 Under budget by $1,129.47 Unit #494 This truck is used by the Streets and Sewer Foreman. The City’s Equipment Replacement plan recommends replacement of this vehicle every 12 years. The existing truck was purchased in 2009 so it is being proposed to be replaced two years before it is scheduled per the City’s plan. It has numerous mechanical issues and is in need of replacement. The current mileage is 90,365. The City received two bids for replacement of this vehicle with a Ford F350 Supercab. The first bid was from Wolf Motors for $33,655.29 and the second bid was from Midway Ford for $39,359. The price difference is due primarily to the trade-in value each company was providing for the old vehicle. Wolf Motors included a $18,000 trade in value for the old truck and Midway Ford included a $12,000 trade in value. Staff recommends purchasing the truck from Wolf Motors for $33,655.29. 2019 Budget = $44,027 Under budget by $10,371.71 5 Unit #453 This unit is a pick up truck used by the Street and Sewer department. It is used for pulling the hotbox in the fall/winter for fixing pot holes and is used for pulling the trailer with the roller in the summer for paving. This truck is a diesel and we need to stick with diesel to have the power necessary to pull the other equipment. The current mileage is 109,824. Per the City’s Equipment Replacement plan this vehicle is scheduled for replacement every 12 years. The current truck was purchased in 2009 and is therefore proposed to be replaced after 10 years. This truck has gotten a lot of use and has become unreliable. It is therefore necessary to replace it now. The current truck is diesel powered and is proposed to be replaced with a diesel powered Ford F350 crewcab. The City received two bids for this vehicle. The first bid is from Wolf Motors for $49,895.42 and the second bid is from Midway Ford for $54,163.95. The 2019 Equipment Replacement plan mistakenly anticipated a gas powered truck and included a budget of $44,027. The diesel powered trucks are more expensive and that is the reason the cost exceeds the budgeted amount. 2019 Budget = $44,027 Over budget by ($5,868.42) Police Squads For 2019 there were three vehicles programmed to be replaced. Unit #1014, a Dodge Charger Unit #715, a Ford SUV Unit #815, a Ford SUV However, based on input from Interim Police Chief Booker, staff is proposing to only replace Units #1014 and Unit #815. The Dodge Charger is beyond its expected replacement year and Unit #815’s replacement is consistent with the City’s Equipment Replacement Plan. They will keep Unit #715 for another year. The funds that were programmed for the replacement of Unit #715 will be used to add an additional vehicle to the fleet. With the recent hiring of four additional police officers it is necessary to add this vehicle to the Police Department fleet. All of the new vehicles are proposed to be Ford Interceptor SUVs. The Ford Interceptor SUV is the City’s standard for patrol squads. They became the standard several years ago and there are benefits to continuing with these vehicles. First, the officers can easily transition from squad to squad where equipment and controls are found in the same place. This is especially 6 important during emergency operations not only with the placement of the controls but the handling of the vehicle itself. Second, the lights and other safety equipment generally have a life span two to three times that of the squad itself. With standardization, the old equipment generally fits the new squad so it allows it to be reused for two to three replacement cycles. Squads can only be purchased through the State of Minnesota Cooperative Purchasing Venture (CPV). Note that the old squads will be retained for the summer months to be used by our 25+ seasonal Public Works staff and then sold at auction in the fall with little to no loss in residual value. This year Ford has come out with a new model of the Interceptor so they have stopped production of the previous model and they will begin production of the new model in a few months. This will delay the City’s receipt of the three new squads until fall. There is also a price increase as a result of the new model. The State bid price is $35,164.50. Included in the 2019 Equipment Replacement Plan was an estimate of $31,909. The cost difference is $3,255.50 per vehicle. 2019 Budget = $31,909 x 3 = $95,727 Over budget by ($9,766.50) Conclusion The Council is being asked to authorize the purchase of the equipment and the disposal of the old equipment. ISSUES: There are no issues anticipated with these purchases. FINANCIAL IMPACT: The Council approved the 2019 budgets and tax levy as part of the December 3rd, 2018 City Council agenda. This authorization for purchase of this equipment is in accordance with the 2019 budget as presented for the fleet replacement program as approved in the 2019 CIP. The 2019 Equipment Replacement Plan (CIP) and the 2019 revolving Equipment Fund budgeted $609,711 for the replacement of these vehicles including appurtenant equipment. The actual replacement cost for this equipment is $600,569.52 which is $9,141.48 below budget. ALTERNATIVES: 1. Motion and second to approve a resolution as part of the consent agenda authorizing the purchase of the nine 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 19-___ A RESOLUTION AUTHORIZING THE PURCHASE OF 2019 EQUIPMENT AS SET FORTH IN THE CAPITAL IMPROVEMENT PROGRAM 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 2019 Equipment Replacement Plan contemplates the replacement of Unit # 781-Skid Loader, Unit #504-16’ Lawn Mower, Unit # 395-Building Inspection Pick- Up, Unit #465-Tandem Axle Dump Truck, Unit #494-1-Ton pick up, Unit #453-1 Ton pick up, Unit #1014 Dodge Charger, Unit #715 Interceptor and Unit #815 Interceptor; and WHEREAS, The 2019 Equipment Plan programmed $609,711 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 #781, Unit #504, Unit #395, Unit #465, Unit #494, Unit #453, Unit #1014 and Unit #815. 3. Staff is authorized to purchase a skid loader, a 16’ lawn mower, a building inspection pick up, a tandem axle dump truck, a street and sewer foreman pick up, a street department pick up and three police department squad cars. 4. Funds will be drawn from the Revolving Equipment Fund Passed and adopted by the Prior Lake City Council this 4 day of March 2019 VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Michael Plante, City Manager