HomeMy WebLinkAbout5H - Purchase of two Pickup Trucks
MEETING DATE:
AGENDA #
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
JUNE 15, 1998
5H
AL FRIEDGES, PARKS SUPERVISOR
CONSIDER APPROVAL OF RESOLUTION 98-xx AUTHORIZING
THE PURCHASE OF TWO 1999 ONE TON FOUR WHEEL DRIVE
PICKUP TRUCKS WITH PLOWS THROUGH THE STATE OF
MINNESOTA COOPERATIVE PURCHASING AGREEMENT.
Historv
The purpose of this agenda item is to consider authorizing the purchase of
two 1999 one ton four wheel drive pickup trucks with 8 1/2 ft. snowplows.
These vehicles would be purchased through the State of Minnesota
Cooperative Purchasing Agreement.
At the May 19th, 1997 City Council meeting, the Council adopted an
Equipment Replacement Fund and Matrix. Identified in the matrix is
$59,850.00 (tax not included) for acquisition of this equipment in 1998.
Current Circumstances
These vehicles will be used primarily for daily maintenance activities
which includes: pulling trailers with mowers and skid loaders to the job
sites. These trucks will be equipt with four wheel drive and 8 1/2 ft. plows
for snow removal during the winter months.
Parks maintenance staff have relied heavily on the two 1988 four whe~l
drive pickup trucks for snow removal operations and transporting
equipment and personnel throughout our park system. One of these
vehicles (Unit #30) has 102,000 miles and the other (Unit #29) has 98,000
miles. In 1997 both these vehicles had the frames fabricated and welded
to get them through another year. At this point these vehicles cannot be
relied upon to plow snow or tow equipment.
Issues
F or the past six years, the Parks Maintenance Department has had to rent
two additional pick up trucks from May through September to perform
daily park maintenance functions and transport seasonal staff. Cost to rent
the two vehicles from mid May through mid September is currently
$3,900.00.
AGPICKUP.DOC 1
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
These 1988 vehicles have outlasted their usefulness for plowing snow and
pulling heavy equipment. However, even though the mileage on these
vehicles is high, they could be used for transporting staff and light supplies
to job sites during the summer months and eliminate the need for renting
vehicles. In 1999, these two trucks would be traded, as our equipment
matrix calls for an additional purchase of two new vehicles. We would
again propose keeping our two oldest pickups for transportation and light
duty.
Conclusion
There is $59,850.00 (tax not included) identified for the purchase of this
equipment in the Parks and Recreation Department Equipment Matrix
which was identified in the Capital Improvement Program. The funding
source is identified as the Revolving Equipment Fund. There is no trade in
vehicle included with this purchase. The total cost for both vehicles with
plows, tax included is $63,849.10. There is money allocated within the
Matrix to provide for the tax.
Make/Model
. Ford F-350
Unit Price
8' Snow Plow
Unit Cost with Plow
Tax
Total Cost
COST RECOVERY SUMMARY:
Equipment Description
Equipment Condition
Equipment Hrs./Miles
Primary Use
Additional Use
Useful Life/Remaining
Equipment Age
Acquisition Date
Acquisition Cost
Matrix Budget Amount
Depreciation
Present Trade-in Value
Projected Equipment Retention
Schedule
AGPICKUP.DOC
$27,056.10 x 2
2,920.00 x 2
$29,976.1 0 x 2
1,948.45 x 2
$31,924.55 x 2
ExistinQ Eauioment
1988 Chevrolet (Unit #30)
Fair
102,000
Snow Removal/Towing
Equipment
Transportation to Job Sites
o Years
10 Years
1988
$14,100
$12,100
$2,000
1 Years
2
I. Ford F-350
$54,112.20
5,840.00
$59,952.20
3,896.90
$63,849.10
New Eauioment
1999 Ford F-350
New
o
Same
Same
8 Years
o
1998
$31,924.55 tax included
$29,925 tax not included
8 Years
.. .
Equipment Description
Equipment Condition
Equipment Hrs./Miles
Primary Use
Additional Use
U sefid Life/Remaining
Equipment Age
Acquisition Date
Acquisition Cost
Matrix Budget Amount
Depreciation
Present Trade-in Value
Projected Equipment Retention
Schedule
Existinl! Eauioment
1988 Chevrolet (Unit #29)
Fair
98,000
Snow Removal/Towing
Equipment
Transportation to Job Sites
o Years
10 Years
1988
$13,300
$11,300
$2,000
1 Years
New Eauioment
1999 Ford F-350
New
o
Same
Same
8 Years
o
1998
$31,924.55 tax included
$29,925 tax not included
8 Years
. The past six years the Parks Maintenance Department has rented
additional trucks during the summer months resulting in $3,000-$4,000
in rental expenses. We intend to reduce the rental line item in the 1999
budget by $3,500.00 if Council approves the proposed purchases and
retention of the two existing trucks.
COST BENEFIT
ANALYSIS:
. Both of these vehicles should be removed from heavy duty operations,
i.e., snow plowing and pulling trailers and other heavy equipment for
the following reasons:
a) If Unit #29 were to continue it's current use it would require an
engine over-haul with a cost of approximately $2,000.
b) The transmissions and transfer cases in both trucks are aging
and cannot continue to take the abuse of plowing and heavy
pulling. Transmission repairs would cost approximately $1,100.
c) The frames in both vehicles are in poor condition and cannot be
repaired if they are broken again.
AL TERNA TIVES: The alternatives are as follows:
1. Approve Resolution 98-XX authorizing the purchase of two 1999 Ford
F-350 trucks through the State of Minnesota Cooperative Purchasing
Agreement in the amount of$63,849.10 while retaining units 29 and 30.
2. Approve Resolution 98-XX authorizing the purchase of two 1999 Ford
F-350 trucks through the State of Minnesota Cooperative Purchasing
Agreement. Trade-in our currently owned 1988 Chevy trucks (Units #29
AGPICKUP.DOC
3
RECOMMENDED
MOTION:
REVIEWED BY:
AGPICKUP.DOC
and #30) and rent additional trucks during the summer months.
3. Table this agenda item for a specific reason.
4. Deny this agenda item for a specific reason.
Motion and second to approve Resolution 98-XX authorizing the purchase
of two (2) 1999 Ford F-350 four wheel drive pickup trucks with
sn~~3.849.10.
Paul Hokeness . IL.
atlO,Ulrector
4
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RESOLUTION 98-xx
RESOLUTION APPROVING THE PURCHASE OF TWO 1999 FORD F-350 PICKUP TRUCKS
WITH SNOWPLOWS
MOTION BY:
SECOND BY:
WHEREAS,
The 1998 Equipment Replacement Fund and Matrix identifies the purchase of two
(2) 1999 Ford F-350 pickup trucks with snowplows, and
WHEREAS,
These vehicles will be purchased through the State of Minnesota Cooperative
Purchase Agreement with negotiated pricing as follows:
Make/Model
Ford F-350
Ford F-350
Unit Price
8' Snow Plow
Unit Cost
Tax
Total Cost
$27,056.10
2,920.00
$29,976.10
1,948.45
$31,924.55
$27,056.10
2,920.00
$29,976.10
1,948.45
$31,924.55
Total Cost (Both vehicles) $63,849.10.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
Minnesota, that the purchase of two 1999 Ford F-350 pickup trucks with snowplows through the State of
Minnesota Cooperative Purchasing Program be approved.
AND FURTHER, That $63,849.10 be drawn from the Equipment Replacement Fund for the purchase of
this equipment.
Passed and adopted this
day of
,1998.
YES
NO
Mader
Kedrowski
Schenck
Petersen
Wuellner
Mader
Kedrowski
Schenck
Petersen
Wuel1ner
{ Seal }
City Manager
City of Prior Lake
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
RSPICKUP.DOC AN EQUAL OPPORTUNIlY EMPLOYER
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