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Home My WebLink About05(N) - Adopt Resolution No. 20-019 - Authorizing the Purchase of 2020 Equipment as Set Forth in the Capital Improvement Program Report MEETING DATE:JANUARY 21, 2020 PREPARED BY:BRIAN WELCH, INFORMATION SYSTEMS COORDINATOR, STEVE FRAZER POLICE CHIEF, RICK STEINHAUS, FIRE CHIEF, ANDY BROTZLER, PUBLIC WORKS DIRECTOR/ENGINEER PRESENTED BY:ANDY BROTZLER, PUBLIC WORKS DIRECTOR/ENGINEER AGENDA ITEM:ADOPT RESOLUTION NO. 20 -___ - AUTHORIZING THE PURCHASE OF 2020 EQUIPMENT AS SET FORTH IN THE CAPITAL IMPROVEMENT PROGRAM GOAL AREAHigh-Value City Services OBJECTIVE: 1. Establish financial stability for all funds. RECOMMENDED ACTION: Adopt Resolution No. 20 -___ -Authorizing the purchase of the nine pieces of equipment and appurtenant equipment as detailed in this report. BACKGROUND: The purpose of this agenda item is to request City Council approval to purchase equipment items previously identified and reviewed in the approved 2020 CIP. These items include the following: •60-inch mower •Building Inspeciton pick-up truck •Public Works tandem-axle plow truck •Public Works pick-up truck (sign truck) •Public Works crew cab pick-up truck (streets) •Police marked squad SUV (3) •Police unmarked investigator cars (2) •Fire grass rig pick-up truck •Fire portable radios 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 buget. 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 2020 there are nine pieces of fleet equipment and portable radios that are programmed to be replaced that require council approval (>$20,000) 1 Existing: Unit #398, 2010 Ford Explorer Unit #9270, 2000 Ford 1-Ton Unit #519, 2008 9-Ton Tandem-Axle Dump Truck Unit #523, 2012 John Deere 6 ft Mower Unit #450, 2011 Ford 1-Ton Unit #459, 2008 Ford 1.5-Ton Unit #316, 2016 Ford Interceptor SUV Unit #417, 2017 Ford Interceptor SUV Unit #715, 2015 Ford Interceptor SUV Unit #1407, 2007 Nissan Murano Unit #1212, 2012 Lincoln MKZ Replaced with: Unit #398 This existing Building Inspection vehicle was formerly the Fire Chief’s vehicle until 2018. The City’s Equipment Replacement plan recommends replacement of this piece of equipment every 8 years of Fire Deptartment use. The Chief’s vehicle was replaced on schedule last year and was repurposed for use by the Buildings Deptartment, thereby getting an additional two years of service (by the time it is replaced in 2020) beyond the recommended replacement schedule. We received two bids for replacement of the vehicle. The first bid was from Wolf Motors and was for a Ford F-150 at a cost of $31,906.68. The second bid was from Midway Ford at the state bid price of $32,608.94. Staff recommends proceeding with the purchase of the new vehicle from Wolf Motors. 2020 Budget = $32,017 Under budget by $110.32 Unit #9270 This is the current 2000 F-350 grass fire truck and is equipped with a pump for offroad grass fires. The current mileage is 26,663. The 2020 Equipment replacement scheduled replacement of this vehicle in 2020. A new pump is needed for the truck as the old one is worn and does not meet current needs of the Fire Department. The City received a bid from Wolf Motors for the Ford F-550 chassis for $46,009.45 and the state bid quote from Midway Ford for $46456.49. The sole bid for the grass-fire pump came from MacQueen Equipment Group at 40,155. The old vehicle will be auctioned off, but the resale value is not reflected in the prices in this report. Staff recommends purchasing the chassis from Wolf Motors and the pump from MacQueen Equipment Group. Truck$ 46,009.45 2 Grass-Fire Pump$ 40,155.00 Total$ 86,164.45 2020 Budget = $65,000 Over budget by ($21,164.45) Unit #519 This unit is a tandem axle dump truck. It is a 2008 Sterling. The City’s Equipment Replacement plan recommends replacement of this vehicle every 12 years. This vehicle has seen heavy use and is in need of replacement. The current mileage is 86,678. 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 equipment. The state bid amount from Boyer Trucks for the base truck is $86,302.93 with the state bid price from Towmaster for the plow equipment and installation at $135,188.00. Staff recommends purchasing the truck from at the state bid price of $86,302.93 and the plow equipment and installation for $135,188.00. Truck $ 86,302.93 Plow Equipment $135,188.00 Total $221,490.93 2020 Budget = $258,102 Under budget by $36,611.07 Unit #523 The existing 60-inch lawn mower is a 2012 John Deere. 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 on schedule. This lawn mower is used to mow lawns in the City’s parks and around facilities and gets very heavy use. It is also used for snow blowing in the winter. It is in poor condition and needs to be replaced. We utilized the state bid for replacement of the John Deere 60-inch lawn mower. The sole bid was from MN Equipment for $40,876.97. Staff recommends proceeding with the purchase of the John Deere 60-inch lawn mower from MN Equipment at the state bid cost of $40,876.97. 2020 Budget = $45,895 Under Budget = $5,018.03 Unit #450 This truck is used for conducting locates as well as maintenance and replacement of street signs. The existing truck is a standard utility vehicle and is not properly equipped for sign maintenance and frequent roadside work. The City’s Equipment Replacement plan recommends replacement of this vehicle every 12 years. The existing truck was purchased in 2011 so it is being proposed to be replaced two years before it is 3 scheduled per the City’s plan. It has numerous mechanical and safety issues and is in need of replacement. The current mileage is 103,272. The proposed vehicle moves from a diesel engine to gas, saving upfront costs and reduces maintenance costs. The vehicle’s equipment boxes will be configured specifically for street sign work, along with a mechanical post-puller and a tailgate configured for sign installation and roadside safety. The City used the state bid for replacement of this vehicle with a Ford F-550. Wolf Motors gave a bid price for the chassis of $27,918.25 and a state bid was received from Midway Ford for $30,872.35. The equipment and installation bid was a state bid from Truck Utilities for $106,279.00. Staff recommends purchasing the truck chasis from Wolf Motors for $27,918.25 and outfitting the equipment from Truck Utilities for $106,279.00. Truck$ 27,918.25 Utility Box$106,279.00 Total$134,197.25 2020 Budget = $149,704 Under budget by $15,506.75 Unit #459 This unit is a 1½-ton truck used for streets and utilities maintenance and snowplowing. This truck is a diesel engine and it is proposed to continue with a diesel engine for the capability to tow trailers and other equipment. The new vehicle will be a four-door crew cab in to support the transportiaton of crews to job sites more efficiently. The current mileage is 81,443. Per the City’s Equipment Replacement plan this vehicle is scheduled for replacement every 12 years. The current truck was purchased in 2008 and is therefore proposed to be replaced on schedule. 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 engine and is proposed to be replaced with a diesel engine Ford F-550 crewcab. The City received a bid from Wolf Motors for $42,224.50 and a state bid from Midway Ford for $47,136.71. A single state bid for the box equipment came from Crysteel for $65,559.23. Staff recommends purchasing the chasis from Wolf Motors for $42,224.50 and the box equipment from Crysteel for $65,559.23. Truck $ 42,224.50 Plow Equipment $ 65,559.23 Total $107,783.73 2020 Budget = $106,859 Over budget by ($924.73) 4 Police Squads For 2020 there were five vehicles programmed to be replaced. Unit #116, a Ford SUV Unit #316, a Ford SUV Unit #715, a Ford SUV Unit #1212, a Lincoln MKZ (civil forfeiture) Unit #1407, a Nissan Murano (civil forfeiture) The first three 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. The second two vehicles are unmarked investigator vehicles and will be Jeep Cherokees; also an effort to standardize equipment. By standardizing equipment, the officers can easily transition from squad to squad where equipment and controls are found in the same place. This is especially important during emergency operations not only with the placement of the controls but the handling of the vehicle itself. In addition, 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 are purchased through the State of Minnesota Cooperative Purchasing Venture (CPV) via Tenovoorde Ford. 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. The trade resale value is not reflected in the pricing at this time. The state bid price for the Ford Interceptor SUVs is $39,932.56 per vehicle. The state bid price from Mike Motors for the Jeeps is $29,890.00 per vehicle. 3x Ford Interceptor $119,797.68 2x Jeep Cherokee $ 59,960.00 Total $179,757.68 2020 Budget = $186,799.00 Under budget by $7,221.32 Portable Fire Radios The Fire Department currently has 47 Motorola XTS2500 800MHz portable radios. These radios are carried by all Firefighters during emergency operations and are considered a life safety piece of equipment. The radios were purchased in 2004 and are no longer supported by Motorola. The 2020 Equipment replacement scheduled replacement of this equipment in 2020. The Fire Department will ask to purchase radios incrementally until all the equipment is replaced. The City received a bid from Motorola Solutions for the replacement of 10 radios and 5 associated equipment for $48,008.75. The radios will be purchased under State contract. Radios$ 48,008.75 Total$ 48,008.75 2020 Budget = $50,000 Under budget by (1,991.25) Conclusion Staff recommends Council authorization for the purchase and replacement of the specified equipment. FINANCIAL IMPACT: The Council approved the 2020 budgets and tax levy as part of the December 2nd, 2019 City Council agenda. This authorization for purchase of this equipment is in accordance with the 2020 budget as presented for the fleet replacement program as approved in the 2020 CIP. The 2020 Equipment Replacement Plan (CIP) and the 2020 revolving Equipment Fund budgeted $894,376.00 for the replacement of these vehicles and equipment. The actual total replacement cost for this equipment is $850,186.44; which is $44,189.56 below budget. ALTERNATIVES: ⦁ Motion and second to adopt 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. ⦁ Motion and second to remove this item from the consent agenda for additional discussion. ATTACHMENTS: ⦁ Vehicle Purchase RES 6 RESOLUTION 20-___ A RESOLUTION AUTHORIZING THE PURCHASE OF 2020 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 2020 Equipment Replacement Plan contemplates the replacement of Unit # 398-Building Inspection Truck, Unit #523-6’ Lawn Mower, Unit # 519-Tandem Axle Dump Truck, Unit #9270-Grass Fire Truck, Unit #450-1.5-Ton locate/sign pick up, Unit #459-1.5 Ton pick up, Unit #116 Interceptor, Unit #316 Interceptor and Unit # 715 Interceptor, #1212 Investigator squad, #1407 Investigator squad, portable fire radios; and WHEREAS,The 2020 Equipment Plan programmed $894,376 for the replacement of these vehicles and equipment; and WHEREAS,Quotes were received and totals are identified in the agenda report. NOW THEREFOREBE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR , LAKE, MINNESOTA as follows: ⦁ The recitals set forth above are incorporated herein. ⦁ Staff is authorized to dispose of Unit #398, Unit #523, Unit #519, Unit #9270, Unit # 450, Unit #459, Unit #116, Unit #316, Unit #715, Unit #1212 and Unit #1407. ⦁ Staff is authorized to purchase a 6’ lawn mower, a building inspection pick up, a tandem axle dump truck, grass fire truck, a 1.5 ton locate/sign pick up, a 1.5 ton pick up, 3 police interceptors, 2 police squad cars and portable fire radios. ⦁ Funds will be drawn from the Revolving Equipment Fund Passed and adopted by the Prior Lake City Council this 21st day of January, 2020 VOTEBriggsThompsonBurkartBraidErickson Aye Nay Abstain Absent ______________________________ Jason Wedel, City Manager 1