HomeMy WebLinkAbout5C - Purchase of Trucks
MEETING DATE:
AGENDA #
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
DECEMBER 7, 1998 ( \
5C ~ I ~\vit) ~
DOUG HARTMAN, PUBLIC WORKS SUPERVISOR /" Qr-- (5 If
CONSIDER APPROVAL OF RESOLUTION 98-XX AUTHORIZING
THE PURCHASE OF ONE 1999 ONE TON FOUR WHEEL DRIVE
PICKUP TRUCK AND ONE 1999 ONE TON UTILITY TRUCK.
Historv
The purpose of this agenda report is to consider authorizing the purchase of
one 1999 one ton four wheel drive pickup truck and one 1999 one ton four
wheel drive utility truck with a crane. Both these vehicles and equipment
will be purchased through the State of Minnesota Co-Op Purchasing
Agreement.
At the May 19, 1997 City Council Meeting, the Council adopted an
Equipment Replacement Fund and Matrix. Identified in the Matrix is
$60,900,00 (tax not included) for acquisition of this equipment in 1998.
Current Circumstances
These vehicles will be used on a daily basis in a variety of ways. The
pickup will be used for pulling trailers, hauling equipment or debris,
snowplowing, and transporting personnel. The utility truck will be used for
lift station maintenance and repair, sewer and water distribution system
maintenance and repairs, pulling trailers, and transporting personnel.
Public Works staff currently has a ten year old 1988 3/4 ton four wheel
drive pickup with an 8 ft. plow. This truck has 80,000 miles and has been
used heavily on snowplowing and towing, With some body repairs, such as
box replacement, this truck is still useful for light duty and transportation.
In other words, this vehicle would no longer be used for plowing snow or
pulling equipment.
The nine year old 1989 one ton four wheel drive utility truck with 72,000
miles has also been used heavily. With body repairs to the utility box, this
truck is still useful for light duty and traasportation. It would no longer be
used as a front line utility repair vehicle or for heavy towing.
Aq-i<tY5I)-,,~fmann St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 440~9675 / Fax (612) 440-9678
AN EQUAL OPPORTUNITY EMPLOYER
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Normally, the 1988 and 1989 vehicles would be recommended for trade.
However, considering that Public Works Maintenance currently has 5
vehicles for 10 employees to use for daily routine maintenance and repairs,
vehicles are needed for transportation to and from work sites with supplies.
Transportation problems are intensified with an additional 4-5 employees
during the summer peak work months. Rather than buy new equipment or
pay mileage for transportation, it is more cost effective to retain the old
equipment.
Conclusion
There is $60,900 identified for the purchase of this equipment in the Public
Works Equipment Matrix. The Capital Improvement Program (CIP) and
Equipment Matrix were approved by the City Council at the May 19, 1997
meeting. The funding source is identified as the Revolving Equipment
Fund. There is no trade in vehicle with this purchase. The total cost for
both vehicles and equipment, tax included is $71,405.06, The $10,505.06,
which is the difference between the amount estimated in the matrix, is
offset by the savings realized in the purchase of two 5-ton dump trucks
earlier this year ($12,600).
COST RECOVERY SUMMARY:
Equipment Description
Equipment Condition
Equipment Hrs./Miles
Primary Use
Additional Use
Useful Life/Depreciation Term
Equipment Age
Acquisition Date
Acquisition Cost
Estimated Matrix Amount
Depreciation
Present Trade-in Value
Projected Equipment Retention
Schedule
AG_TRUCK.DOC
Existinl! Eauioment
1988 Ford F250 (Unit #1)
Fair
80,000
Snow Removal/Transport
Equipment
Limited to Transportation!
Haul Debris
8 Years
11 Years
11-15-87
$13,400
N/A
$13,400
$2,000
8 Years
2
"
Additional Eauioment
1999 Ford F350
New
o
Sanle
Heavy and light work
8 Years
o
1998
$27,291.69 including tax
$25,200 not including tax
N/A
N/A
8 Years
t, ,
Equipment Description
Equipment Condition
Equipment Hrs./Miles
Primary Use
Additional Use
Useful Life/Depreciation Term
Equipment Age
Acquisition Date
Acquisition Cost
Estimated Matrix Amount
Depreciation
Present Trade-in Value
Projected Equipment Retention
Schedule
COST BENEFIT
ANALYSIS:
Existimr Eauinment
1989 Chevrolet (Unit #32)
Fair
72,000
Utility maintenance
Transport Equipment
8 Years
9 Years
1-31-89
$22,568
N/A
$22,568
$6,000
8 Years
Additional Eauinment
1999 Ford F350 (Utility)
New
o
same
same
8 Years
New
1998
$44,113.37 (including Tax)
35,700 (not including tax)
N/A
N/A
8 Years
Both these vehicles should be removed from heavy duty operations, i.e.,
snowplowing, pulling trailers, and equipment for the following reasons:
a) Unit #1, transmission and transfer case continue to age and are showing
signs of failure. Estimate cost to repair $1,000 - $3,000.
b) Unit #32, with heavy use engine overhaul is probable based on past
engine history.
c) Public Works is currently experiencing a shortage of vehicles used for
daily routine maintenance and repair duties. With light duty, we will
attempt to stretch two more years out of these vehicles,
d) These acquisitions are in accordance with the previously adopted
equipment matrix.
AL TERNATIVES: The alternatives are as follows:
1. Approve Resolution 98-XX authorizing staff to purch,~se the trucks
through the State of Minnesota Cooperative Purchasing Agreement in
the amount of$71,405.06
2, Approve Resolution 98-XX authorizing the purchase of the trucks
through the State of Minnesota Cooperative Purchasing Agreement
with amendments.
3. Table this agenda item for a specific reason,
4. Deny this agenda item for a specific reason.
AG_TRUCK.DOC
3
RECOMMENDED
MOTION:
REVIEWED BY:
AG_TRUCK.DOC
..
Motion and second as part of the consent agenda to approve Resolution
98-XX authorizing acquisition of two one ton vehicles through State of
Minnesota Cooperative Purchasing.
Gr1:t:J Ih -
PUb
Prank B~s/
City ~
4
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RESOLUTION 98-XX
AUTHORIZING PURCHASE OF ONE 1999 ONE TON FOUR WHEEL DRIVE PICKUP
TRUCK AND ONE 1999 ONE TON UTILITY TRUCK AND APPURTENANT
EQUIPMENT
MOTION BY:
SECOND BY:
WHEREAS, the City adopted a Revolving Equipment Fund on May 19,1997, and
WHEREAS, the adopted Revolving Equipment Fund included purchase of two one ton'
single axle trucks in 1998, and
WHEREAS, the City can take advantage of the Minnesota Cooperative Purchasing
Agreement (State Bid) for the purchase of these trucks and equipment.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA, the City Council hereby authorizes expenditure of $71,405.06 plus actual
license and registration fees from the Equipment Revolving Fund for the purchase of
two one ton single axle trucks through the Minnesota Cooperative Purchasing
Agreement.
Passed and adopted this 7th day of December, 1998.
YES
NO
Mader
Kedrowski
Petersen
Schenck
Wuellner
Mader
Kedrowski
Petersen
Schenck
Wuellner
{Seal}
Frank Boyles
City Manager
City of Prior Lake
re~t'ffi~~5\de]mann St. S.E., Prior Lake, Minnesota 55372/ Ph. (612) 440-9675 / Fax (612) 440-9678
AN EQUAL OPPORTUNITY EMPLOYER