HomeMy WebLinkAbout5K - Chevrolet Suburban Purchase
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STAFF AGENDA REPORT
DATE:
5K
SUE MCDERMOTT, ASSISTANT CITY ENGINEER
CONSIDER APPROVAL OF RESOLUTION 98-XX APPROVING
THE PURCHASE OF ONE 1999 CHEVROLET SUBURBAN TO
REPLACE AN EXISTING CITY VEHICLE.
MARCH 16, 1998
AGENDA #:
PREPARED BY:
SUBJECT:
BACKGROUND:
An equipment matrix was adopted by Council on May 19, 1997 as
part of the 1998-2002 Capital Improvements Program. Included
in 1998 is $31,500 for the purchase of a new carryall vehicle to
replace the existing survey/construction vehicle for the
Engineering Department.
DISCUSSION:
The current survey/construction vehicle is a 1986 Suburban with
41,200 miles. The vehicle requires $2,375.07 of mechanical
repairs including shocks, transmission and exhaust system
repairs, tie rod, idler arm, new belts, ball joints, etc. In addition,
the vehicle would require $8,105.39 of body work to repair rust
damage. Attached are itemized repair quotes from Grossman
Chevrolet and Pearson's Prior Lake Auto Collision. Considering
the existing condition of the Suburban combined with the
estimated cost to repair it, the vehicle has exceeded its expected
life for its intended use. The Engineering Department requires a
reliable vehicle to complete construction inspection and staking of
the proposed 1998 improvement projects as well as future capital
improvement projects.
Several vehicle models have been considered to replace the
Suburban. Three major requirements of the vehicle are storage
space, seating, and payload to accommodate the
survey/construction activities, personnel, equipment and other
required supplies. The attached matrix outlines the vehicles that
were considered.
Routine maintenance of the new vehicle is proposed to be
performed in-house. With an estimated mileage of 4,500
annually, this vehicle is estimated to be replaced in 10 years as
outlined in the Equipment Matrix in the C.I.P. With regularly
scheduled maintenance and low mileage this vehicle should have
a high retail value in 2008.
162@"~~ce:reek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
To determine which vehicle provides the best value we compared
the purchase price and current retail value of a 1988 Suburban
and a 1988 Van (Chevy), see attached chart. The information was
taken from the National Automobile Dealers Association
(N.A.D.A.) book. Over the ten years the Suburban retained 55%
of its original value while the van retained 42%. If we use these
values to project vehicle values in 2008 as follows:
Suburban:
Van:
55% of $25,798 = $14,189
42% of $20,798 = $ 8,735
We also compared the differences in projected retail values vs.
the current retail values (purchase price) of 2 wheel drive vehicles
as the van is not available with a 4 wheel drive option.
Suburban
Van
Difference
1998 Retail Value
$25,798
$20.798
$ 5,000
2008 Retail Value
$14,189
$ 8.735
$ 5,454
Because the Suburban retains so much more value than the van,
the difference in cost in 1998 is more than recovered in 2008
when the vehicle will be scheduled for replacement assuming no
dramatic changes in the resale market.
In addition, considering projects recently undertaken and
proposed to be undertaken, the staff feels a 4 wheel drive (4WD)
vehicle should be considered. On the State bid the 4WD option
has a price of $1,191 when compared to a 2 wheel drive. The
1998 retail price of the 4WD option is approximately $2,600. Per
the current N.A.D.A. Official Older Used Car Guide the retail value
of a ten-year-old 4WD Suburban is $1,300 more than a 2WD. This
indicates the 4WD option will also retain its value over the
expected life of the vehicle. Considering the potential uses
(construction observation, staking, and preliminary surveying),
state bid pricing, and comparing resale prices of 4WD vs. 2WD
vehicles in Minnesota, the 4WD option is recommended.
Purchase of the vehicle is proposed through the State of
Minnesota Cooperative Purchasing Agreement (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. The total
purchase price of a 1999 4WD Suburban, including tax and
estimated license fee, equals $29,058. Since the 1998 model
Suburban is no longer available, the state vendor is honoring the
1998 bid price for the 1999 model. The vendor is Grossman
SUBURBAN.DOC
Chevrolet. The description and cost are detailed on the attached
sheet.
The 1986 Suburban will be traded in as a part of the purchase or
sold. Also included in this agenda is a request for approval to
dispose of a 1984 Ford Ranger. This vehicle is unsafe, unreliable,
and the cost of repairs are more than the vehicle is worth.
FINANCIAL IMPACTSI
COST RECOVERY:
The funding source for this vehicle is the Equipment Revolving
Fund as outlined in the 1998-2002 C.I.P. Equipment Matrix. With
a proposed cost of $29,058 compared to the estimated cost of
$31,500 represents a $2,442 savings to this fund. The table
below summarizes cost recovery.
COST RECOVERY SUMMARY
1. Equipment Description:
2. Equipment Condition:
3. I Equipment Miles
I
4. I Primary Use:
I
5. I Useful LifelDepreciation Term:
I
6. I Equipment Age:
I
7. I Acquisition Date:
I
8. I Acquisition Cost:
I
9. I Matrix Budget Amount:
I
10. I Depreciation:
I
11. I Present/Trade-in Value:
I
12. Projected Equipment
Retention Schedule:
SUBURBAN.DOC
Existinl! Eouioment Reolacement Eouiomen(
1986 Suburban 2WD I 1999 Suburban 4WD
I
I Poor Excellent
I
I 41,200 0
I
1 Survey/constr.staking Same
I
I 1 0 years 1 0 years
.1
I 12 years o years
I
.1 12/15/85 3/98
I
I $13,150 $29,058
I
1 N/A $31,500
I
I $13,150 $0
1
I $500 $29,058
.1
N/A 1 0 years
ALTERNATIVES:
RECOMMENDATION:
ACTION REQUIRED:
SUBURBAN.DOC
There are two alternatives for the City Council to consider:
1. Approve expenditure of $29,058 subject to actual license and
registration fees from the Equipment Revolving Fund for the
purchase of a 1999 4WD Chevrolet Suburban from Grossman
Chevrolet to replace an existing City vehicle in the Engineering
Department. This alternative includes approval to trade-in or
sell the 1986 Suburban as well as a 1984 Ford Ranger.
2. Deny this item for a specific reason and provide staff with
direction.
Alternative No.1.
A motion and second to approve $29,058 subject to actual license
and registration fees from the Equipment Revolving Fund for the
purchase of a 1999 4WD Chevrolet Suburban from Grossman'
Chevrolet to replace an existing City vehicle and trade-in, sell or
othe;:~:ose of the 1 rSUbUrban and 1984 Ford Ranger.
REVIEWED
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RESOLUTION 98-XX
RESOLUTION APPROVING THE PURCHASE OF ONE
1999 CHEVROLET SUBURBAN TO REPLACE
AN EXISTING CITY VEHICLE
MOTION BY: SECONDED BY:
WHEREAS, the 1998 Equipment Replacement Fund and Matrix identifies the purchase of
one (1) Chevrolet Suburban 4WD vehicle; and
WHEREAS, the vehicle being replaced is a 1986 Chevrolet Suburban; and
WHEREAS, the vehicle can be purchased through the Minnesota Cooperative
Purchasing Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA, approve expenditure of $29,058 (subject to tax and license) from the
Equipment Revolving Fund for a 1999 4WD Chevrolet Suburban and trade-in/sale of a 1986
Suburban and 1984 Ford Ranger.
Passed and adopted this 16th day of March, 1998.
YES
NO
Mader
Kedrowski
Petersen
Schenk
Wuellner
Mader
Kedrowski
Petersen
Schenk
Wuellner
{Seal}
Frank Boyles
City Manager
City of Prior Lake
16200 E~~reek Ave. S.L, Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
ENGINEERING SURVEY/CONSTRUCTION VEHICLE MA TRIX
The following is a list of some of the required specifications: 1998 or newer, storage from back seat to
door min. 70", payload min. 2600 lb., min. 3/4 ton.V8 engine, seating for up to five, etc.
VEHICLE - MODEL
A Astro Passenger
B E350 VAN
C Express Van
D Suburban 4x2
E Suburban 4x4
YEAR
1998
1998
1998
1999
1998
MANUF. STORAGE SPACE
Chevrolet 51.6" x 61.7"
Ford 51.3" x 72.0"
Chevrolet 50.0" x 87.3"
Chevrolet 49.7" x 70.9"
Chevrolet 149.7" x 70.9"
PAYLOAD 4x4
1668 lb. AWD
2794 lb. no
2818 lb. no
3100 lb. no
3026 lb. yes
VEHICLE
Suburban
Van
N.A.D.A. for 1988 Vehicles
M.S.R.P. (1988) RETAIL
$13,945.00 $7,700.00
$11,360.00 $4,825.00
COST
$ 21 ,725.00
$ 20,808.00
$ 20,798.00
$25,798.00
. $ 26,989.00
% Retained
55%
42%
VE:NX::R Grcssnan Chevrolet
GRaJP
DESCRlPI'IDN
G!Carryall~, Per State
Spec. V-12t-97 Mmufacturers Standard Color
With the following optional equiprrent:
- Mininum 6800 GVW
- Standard front seat center and full
width rear seat
- Pov.er Steer ing
- Eng me Plug- In Heater, 600 vatt mininum
Installed with Single :rp;u'l
- AWFM Radio, Factory Installed
- Tires to be F;,,,''1i~l Ply'I1l.:e
- Cruise Control, Factory Installed and Tilt \'heel
- mterior H=-rll mer
- Cloth Seats
- Air Copdition ing, Factory Installed
- All Wincbw; Tinted
- Color - to be selected by agency
- Cold clinate p:l.ckage with heavy duty rettery
19.
BID 16 oPrIDNAL ~
- Cast for Limited Slip Differential
- Cast for Andliary Rear Passenger Heater
20.
Delivery Destinatioo: st. Paul, MN
Truck, Carr}'all 'I1l.:e, 4x4, Sane
Sr:ecif ications as Group 19, except:
- M.in irrurn 7200 G\iW
- 4-Vbeel Drive
- M.in irrurn 350 C ID
- Tilt Vheel
- Center and Rear Seat
- Alxiliary Rear heater
Contract
'lUI'AL
CCST
PER UNIT
II t€#l'5C l+if1e.
$25, 798. 00 t $l-fD'-1
fa-x
+ ~Ilt> 17
f.Bke:. Chevrolet
f'A'vl:> 1: CCl0906 314 ton sub.1rl:an
Engine Size: 350 cm V-8
Tire Size: P245/75R-16E:
UNJT PRJCE;
$ 211. 00 IEctch
$ 170.00 lEach
Page 34
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4474230
2 1 124 6
CITY OF PRIOR LAKE
16200 EAGLE CREEK AVE
PRIOR LAKE MN 55372
HOME: 447-42~0 BUS:
*INVOICE*
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Service 7 A.M. til 6 P.M. Wed. til 9 P.M.
Saturday 8 A.M. tit 12 NOON
RENTAL CARS ARE A V AILABLE
STATEMENT OF DISCLAIMERHDg$.C~WrION
The factory warranty constitutes all of the LABOR AMOUNT
warranties with respect to the sale of this PARTS AMOUNT
item/items. The Seller hereby expressly I GAS, OIL, LUBE
disclaims all warranties, either express or SUBLET AMOUNT
implied, jn~l.uding a~y implied warran~y of MISC. CHARGES
merchantability or fitness for a particular
purpose. Seller neither assumes nor authorizes I TOTAL CHARGES
any other person to assume for it any liability LESS INSURANCE
in connection with the sale of this item/items. SALES TAX
10ST MAJOR CREDIT CARDS ACCEPTED
ALWAYS BRING YOUR CAR HERE
FOR FACTORY AUTHORIZED
SERVICE & PARTS
CUSTOMER SIGNATURE
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DAMAGE REPORT
02/06/98 at 11: 59
CITY OF PRIOR LAKE
D.R. 14321-0004058
Est: D. HESSE
PEARSON'S PRIOR LAKE AUTO COLLISION
16111 MAIN AVENUE S.E.
PRIOR LAKE, MN 55372-
(612) 447-4259
PRIOR LAKE
Day Phone: (
Other Ph: (
Deductible: $
) 447-4230-
)
N/A
Owner: CITY OF PRIOR LAKE
Address:
Insurance Co.:
Claim No.:
Phone:
Adj. :
86 CHEV C10 4X2 SUBURBAN PANEL 4D UTV BROWN 8-5.7L-4
Vin: 1G8EC16L4GP100835 License: MN Prod Date: 0/ 0 Odometer:
o
Power brakes
Clear coat paint
Tinted glass
Dual mirrors
NO.
OPe
DESCRIPTION OF DAMAGE
QTY
PART
COST LABOR PAINT
MISC
--------------------------------------------------------------------------------
1 FRONT BUMPER
2 R&I Face bar chrome w/o cushio 0.00 0.5 0.0
3 HOOD
4 Repl Hood 219.00 1 .0 3.6
5 Add for Underside 0.00 0.0 1 .8
6 FENDER
7 Repl RT Fender 1 139.00 2.3 2.7
8 Overlap Major Adjacent Panel 1 0.00 0.0 -0.4
9 Add for Edging 1 0.00 0.0 0.5
10 Repl LT Fender 1 139.00 2.3 2.7
1 1 Overlap Major Adjacent Panel 1 0.00 0.0 -0.4
12 Add for Edging 1 0.00 0.0 0.5
13 Repl RT Nmplt Chvy Cstm Dlx 10 srs 1 21.05 0.3 0.0
14 Repl LT Nmplt Chvy Cstm Dlx 10 srs 1 21.05 0.3 0.0
15 Repl RT Wheelhouse 1 68.75 0.6 0.0
16 Repl LT Wheelhouse 1 68.75 0.6 0.0
17 FRONT DOOR
18 Repl RT Door shell 1 175.00 3.0 4.0
19 Overlap Major Adjacent Panel 1 0.00 0.0 -0.4
20 Repl LT Door shell 1 175.00 3.0 4.0
21 Overlap Major Adjacent Panel 1 0.00 0.0 -0.4
22 REAR DOOR
23 Repl RT Door shell 1 378.75 3.0 4.0
24 Overlap Major Adjacent Panel 1 0.00 0.0 -0.4
25 QUARTER PANEL
26 Repl RT Outer panel 887.00 14.0 3.5
27 Overlap Major Adjacent Panel 0.00 0.0 -0.4
Page:
\
DAMAGE REPORT
02/06/98 at 11 :59
CITY OF PRIOR LAKE
D.R. 14321-0004058
Est: D. HESSE
PEARSON'S PRIOR LAKE AUTO COLLISION
16111 MAIN AVENUE S.E.
PRIOR LAKE, MN 55372-
(612) 447-4259
------------------------------------------------------------------------
NO.
OPe
DESCRIPTION OF DAMAGE
QTY
PART
COST LABOR PAINT
MIse
--------------------------------------------------------------------------------
28 Repl LT Outer panel 887.00 1 3.5 3.5
29 Overlap Major Adjacent Panel 0.00 0.0 -0.4
30 Deduct for Rear Bumper R&I 0.00 -0.5 0.0
31 REAR LOADING DOOR
32 Repl RT Door shell 1 565.25 2.0 3.7
33 Overlap Major Adjacent Panel 1 0.00 0.0 -0.4
34 Repl LT Door shell 1 565.25 2.0 3.7
35 Overlap Major Adjacent Panel 1 0.00 0.0 -0.4
36 ROOF
37* Repr Panel 0.00 2.0 5.0
38 Overlap Major Adjacent Panel 0.00 0.0 -0.4
39* CLEAR COAT 0.00 0.0 4.0
Subtotals
===>
4309.85 49.9 43.2
0.00
Page: 2
DAMAGE REPORT
02/06/98 at 11 :59
CITY OF PRIOR LAKE
D.R. 14321-0004058
Est: D. HESSE
PEARSON'S PRIOR LAKE AUTO COLLISION
16111 MAIN AVENUE S.E.
PRIOR LAKE, MN 55372-
(612) 447-4259
Parts
Body Labor
Paint Labor
Paint/Materials
49.9 units @ $34.00
43.2 units @ $34.00
4309.85
1696.60
'1468.80
350.00
SUBTOTAL
Tax on $ 4309.85 at
$
7825.25
280.14
6.5000%
GRAND TOTAL
$
8105.39
INSURANCE PAYS
$
8105.39
THIS ESTIMATE IS BASED ON OUR INSPECTION AND DOES NOT COVER ADDITIONAL PARTS OR LABOR WICH MAY BE REQUIRED AFTER THE WORK HAS BEEN
STARTED. AFTER THE WORK HAS STARTED,WORN OR DAMAGED PARTS WHICH WERE NOT EVIDENT ON FIRST INSPECTION MAY BE DISCOVERED. NATURALLY,
THIS ESTIMATE CANNOT COVER SUCH CONTINGENCIES.
Estimate based on MOTOR CRASH ESTIMATING GUIDE. Non-asterisk(*) items are derived from the Guide DR1GA84. Database Date ~O/97
Double asterisk(**) items indicate part supplied by a supplier other than the original equipment manufacturer.
CAPA items have been certified for fit and finish by the Certified Auto Parts Association.
EZEst - A product of CCC Information Services Inc.
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