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Home My WebLink About9D - Purchase of Equipement for Parks Dept. MEETING DATE: AGENDA # PREPARED BY: SUBJECT: DISCUSSION: STAFF AGENDA REPORT MAY 3,1999 9D AL FRIEDGES, PARKS SUPERVISOR CONSIDER APPROVAL OF RESOLUTION 99-XX AUTHORIZING THE PURCHASE OF ONE, 1999 ONE TON TRUCK WITH A THREE YARD DUMP BODY AND PLOW AND ONE, 1999 ONE TON TRUCK WITH A THREE YARD DUMP BODY THROUGH THE STATE OF MINNESOTA COOPERATIVE PURCHASING AGREEMENT. History The purpose of this agenda item is to authorize the purchase of two (2) 1999 one ton trucks with three yard dump bodies. One of these vehicles will be equipped with a plow. Both of the vehicles a "'_ will be purchased through the State of Minnesota Cooperative Purchasing Agreement. At the May 19, 1997, City Council Meeting, the Council adopted an Equipment Replacement Fund and Matrix. The purpose of the matrix is to identify and budget for additional or replacement vehicles and equipment. All vehicles and equipment identified in the matrix are subject to Council approval prior to being purchased. Earlier this year the City Council inspected all equipment to be replaced this year. Current Circumstances These vehicles will be used primarily for year round daily maintenance activities which include: pulling trailers to transport equipment, and hauling black dirt, wood chips, aglime, Class #5, and landscaping materials throughout the Park system. They also serve our winter maintenance needs for plowing and towing winter maintenance equipment. The dump boxes on these vehicles makes them extremely useful for the daily maintenance operations throughout the Park system. Parks Maintenance Staff has relied heavily on two, 1988 four- wheel drive pickup trucks for snow removal operations and transporting equipment and personnel throughout the Parks system. Both these vehicles have had the frames fabricated and welded. The current condition of the frames makes them unsafe to 16~~~g~1~R!ek Ave. S.E., Prior Lake, MinnesotaI55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER AGTRUCK1.DOC continue operating much longer. We have received quotes for these vehicles to be reconditioned to make them safe and operational. The estimates to recondition the frames and bodies of both vehicles is $23,367.64, and to rebuild the engines and drivetrains is $11,313.50 for a total of $34,681.14. Considering that the price of a new vehicle is $38,500.00 it does not make economic sense to refurbish vehicles with over 100,000 miles. Issues These 1988 vehicles have outlasted their usefulness for plowing snow and pulling heavy equipment. The Equipment Matrix identified both these vehicles to be traded in 1998. However, even though the mileage on these vehicles was high and the condition of these vehicles are poor, it was decided at the June 15, 1998 Council Meeting to utilized these vehicles to transport staff and light supplies an additional year. We then would trade and replace the 1988 vehicles as the matrix called for in 1999. Conclusion There is $72,710.00 (tax not included) for the purchase of this equipment in the Parks and Recreation Department Equipment Matrix which is identified in the Capital Improvement Program. The funding source is identified as the Revolving Equipment Fund. The State of Minnesota contract bids for the two new trucks are as followed: MAKEIMODEL FORD F-350 FORD F-350 Unit Price $27,579.00 $27,579.00 3 Yard Dump Box $7,050.00 $7,050.00 Boss Snow Plow $3,450.00 N/A Total Unit Cost $38,079.00 $34,629.00 Trade in Value (Unit #29) (Unit #30) Trade in Value $2,000.00 $2,000.00 Sub Total $36,079.00 $32,629.00 Sales Tax $2,345.14 $2,120.89 Total Cost/Per Unit $38,424.14 $34,749.89 GRAND TOTAL $73,174.03 (BOTH VEHICLES) 2 COST RECOVERY SUMMARY: In accordance with City Council direction the cost recovery for the vehicles is shown below: Existinq Equipment Replacement Eauipment 1. Equipment Description: 1988 Chevrolet (Unit 1999 Ford F-350 #29) 2. Equipment Condition: Poor New 3. Equipment Hrs.lMiles 100,633 0 4. Primary Use: Snow Removal Snow Removal Transporting Equipment Transport Equipment Haul Materials Secondary US.e: Transportation to Job Same Sites 5. Useful Life/Remaining o Years 8 Years 6. Equipment Age: 11 Years o Years 7. Acquisition Date: 1988 1999 8. Acquisition Cost: $13,000.00 $38,079.00 (tax not incl.) 9. Matrix Budget Amount: -- $41,360.00 (tax not incl.) 10. Depreciation: $13,000.00 -- 11. PresentlTrade-in Value: $2,000.00 -- 12. Projected Equipment Retention o Years 8 Years Schedule: 13. Net Cost after Trade-in N/A $36,079.00 (tax not incl.) AGTRUCK I.DOC 3 COST RECOVERY SUMMARY: ExistinQ Equipment Replacement Equipment 1. Equipment Description: 1988 Chevrolet (Unit #30) 1999 Ford F-350 2. Equipment Condition: Poor New 3. Equipment Hrs.lMiles 105,305 0 4. Primary Use: Snow Removal Transport Equipment Transport Equipment Haul Materials Snow Removal Secondary Use: Transportation to Job Same Sites 5. Useful Life/Depreciation Term: o Years 8 Years 6. Equipment Age: 11 Years o Years 7. Acquisition Date: 1988 1999 8. Acquisition Cost: $14,100.00 $34,629.00 (tax not incl.) 9. Matrix Budget Amount: -- $31,350.00 (tax not incl.) 10. Depreciation: $14,100.00 -- 11. PresentlTrade-in Value: $2,000.00 -- 12. Projected Equipment Retention o Years 8 Years Schedule: 13. Net Cost After Trade-in N/A $32,629.00 (tax not incl.) AGTRUCKl.DOC 4 COST BENEFIT ANALYSIS: AGTRUCK I.DOC Both vehicles (Unit #29 & Unit #30) are structurally unsafe. The frames, fenders, boxes and rocker panels are rusted and need repair if they continue to be utilized in the Parks Maintenance Vehicle Fleet. With the high mileage and heavy use that these vehicles have been exposed to, the engines, transmissions and transfer cases will soon be in need of repair. The following structural and mechanical cost summary is a per unit cost estimate to repair the vehicles. STRUCTURAL COST SUMMARY Parts $7,041.90 Body Labor 48.8 units @ $36.00 $1,756.80 Paint Labor 35.0 units @ $36.00 $1,260.00 PainUMaterials 35.0 units @ $20.00 $700.00 Mechanical Labor 8.2 units @ $57.00 $467.40 Tax on Parts $7,041.90 @ $457.72 6.50000% Total Structural Per Unit $11,683.82 TOTAL STRUCTURAL BOTH UNITS $23,367.64 MECHANICAL COMPONENTS COST SUMMARY Engine Overhaul (Parts & Labor) $2,250.00 Transmission (Parts & Labor) $1,450.00 Transfer Case (Parts & Labor) $1,000.00 Front Differential (Parts & Labor) $400.00 Tires (Includes Labor) $300.00 Tax (Parts Only - $3,950) $256.75 Total Mechanical Per Unit $5,656.75 Total Mechanical Both Units $11,313.50 TOTAL BOTH UNITS $34,681.14 5 ALTERNATIVES: The alternatives are as follows: 1. Approve Resolution 99-XX authorizing the trade-in of our currently owned 1988 Chevrolet trucks *(Units #29 & #30) for two-thousand dollars each and purchase one, 1999 Ford F- 350 truck with a three yard dump body and plow for the cost of $38,424.14 (tax included) and one, 1999 Ford F-350 truck with a three yard dump body for the cost of $34,749.89 (tax included.) 2. Table this Agenda Item for a specific reason. REVIEWED BY: 3. Deny this Agenda Item s~ Paul Hokeness Parks and Recreaf n Director AGTRUCK1.DOC 6 RESOLUTION 99-xx RESOLUTION APPROVING THE PURCHASE OF TWO 1999 FORD F-350 TRUCKS WITH DUMP BODIES AND ONE PLOW MOTION BY: SECOND BY: WHEREAS, the 1999 Equipment Replacement Fund and Matrix identifies the purchase of two (2) 1999 Ford 5-350 trucks with dump bodies; WHEREAS, these vehicles will be purchased through the State of Minnesota Cooperative Purchase Agreement with negotiated pricing as follows: MAKEIMODEL FORD F-350 FORD F -350 Unit Price $27,579.00 $27,579.00 3 Yard Dump Box $7,050.00 $7,050.00 Boss Snow Plow $3,450.00 N/A Unit Cost w/Box & Plow $38,079.00 $34,629.00 Trade in Value (Unit #29) (Unit #30) Trade in Value $2,000.00 $2,000.00 Sub Total $36,079.00 $32,629.00 Sales Tax $2,345.14 $2,120.89 Total Cost/Per Unit $38,424.l4 $34,749.89 GRAND TOTAL $73,174.03 (BOTH VEIDCLES) NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, Minnesota, that the purchase of two, 1999 Ford F-350 trucks with dump bodies be approved: Passed and adopted this 3rd day of May, 1999. YES NO Mader Mader Kedrowski Kedrowski Schenck Schenck Petersen Petersen Wuellner Wuellner { Seal } City Manager City of Prior Lake .i