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HomeMy WebLinkAbout2014-05-07 PACKET 08.B.REQUEST OF CITY COUNCIL ACTl�N COUNCI�. AGENDA MEETING ITEM # DATE 5/7/14 0 PI�EPARED BY Pub(ic Works Les Burshten ORiG1NATING DEPARTMENT DEPARTMENT HEAD **�**�����**��*����*���:����*********��****�:����� COUNCIL ACTIQN REQUEST: Consider approving the purchase of twa new Western Star dump trucks with snawplow equipment far a combined purchas� price of $377,333,48. STAFF R�COMMENDATlON Consider fhe purchase of two new Wesfiern Star dump trucks with sndwplow eq��ipment for a combined purchase price of $377,333.48. BUDGET 1MPLfCATlON: �36Q,OOO.QO BUDGETED AM4UNT ADVIS�RY C�MMISSION ACT10N. DATE ❑ PLANNING ❑ PUgL.fC SAF'ETY C] PUBLIC WORKS ❑ PARKS AND RECREATI�N ❑ HUMAN SERV[CES/R[GHTS ❑ ECONOMIC DEV. AUTHORiTY Q SUPPORTING DOCUMENTS REVIEVV�D ❑ ❑ ❑ ❑ ❑ ❑ ❑ � MEMOILETTER: Ad�m Moshier, A�ril 29t; 20�4 ❑ RESO�.uTION: ❑ ORDINANCE: �f ENGINEERfNG RECOMMENDATfON: ❑ LEGAL RECOMMENDATI4N: [� 4THER: ADMINISTRATORS CON[MENTS $377,333.48 ACTUAL AMOUNT APPROVED ❑ ❑ ❑ ❑ ❑ ❑ � DEN f ED Q Q ❑ ❑ 0 ❑ ❑ � �- ity Administrator Dafie ***�:��:��*�������������*��*�*�**����********�:�:�:�� http:I/infranebcity-councii/caunci(-actlon, doa C.� Cottage J Grove � Pride andP��sPerity Meet To: Les Burshten, Public Works Director From: Adam Moshier, Management Assistant Date: 4/29/2014 Subject: 2013 Vehicle Replacement Purchase-Two Single Axle Dump Trucks Introduction The 2013 budget allocated $360,000 for the replacement of two 1997 Ford Louisville single — axle dump trucks with plow equipment. Staff delayed purchasing these items in 2013 in order to avoid paying sales tax due to recently passed legislation which equates to a$24,750 savings on a total purchase price of $360,000. The City is not exempt from motor vehicle tax which is 6.5°k of the purchase price on the dump trucks. Staff was under the impression the City would be exempt from all taxes when the purchase was delayed. Backqround The City's replacement schedule for dump trucks with plow equipment is 15 years. Staff is recommending replacing both trucks as they are 17 years old. Each truck plows an average of 120 miles of road each time they are called out during a snow storm. Both trucks have approximately 69,000 miles of service. A large percentage of the service miles are related to snow removal. Thus, the wear and tear is significantly more prominent due to the conditions of the work. In addition to snowplowing, these trucks pertorm a variety of jobs during the summer which include paving and street sweeping operations as well as hauling gravel, dirt, leaves and tree limbs. Over the past couple years, staff has been researching different model trucks to replace the current 1997 Ford dump trucks. Staff considered Freightliner, Peterbilt, Western Star and Mack in various categories. All four models were brought in to Public Works and operators had a chance to observe, test drive and take an evaluation on each truck. There were 15 different categories from visibility and steering response to comfort of ride and turning radius. Each category was rated on a scale of 1-10 with 10 being the highest. The average overall rating for each truck is in the table below. Western Star Peterbilt Frei htliner Mack 8.2 8.1 7.7 7.1 Western Star had the highest average score and the highest rating in seat comfort, adjustment, adjustable steering counsel, steering response, turning radius, transmission controls, daily service, grease, fluid checks, comfort of ride, engine power and cab visibility front and rear. Western Star also offers a high ground clearance option for the fuel tank, which is needed for the underbody. Staff is unaware of the other models having this option. Mack had the lowest average score in the evaluation and was no longer considered as an option. The truck model staff wanted from Freightliner needed bolt on e#ensions for the front mount plow, which staff wasn't comfortable with. PeterbilPs are not on the state contrect. Staff researched a price through HGAC Buy program. As shown below, that price is significantly higher than the other three trucks. Staff decided Westem Star was the truck to research. The graph below represents Freightliner, Westem Star, Mack and Peterbilt estimate prices. All are on the state contrad with the exception of Peterbilt. These prices do not include any tax. The snowplow equipment cost is not included but would have been the same no matter which model truck. Peterbilt Frei htliner Mack Westem Star $102,214 $91,299 $91,799 $94,913 Many other cities and counties have purchased Westem Stars within the past year some include, Washington County (3), City of Minneapolis (6), City of Roseville, City of Edina, Sibley County (2) and Duluth. This is the first year Westem Star has been on the state contrect. The graph below displays the total price for chassis the City paid in 1997, 2004, 2005, 2009, 2010 and 2014. This illustretes the dramatic increase in the price of a dump truck over the years, mostly due to emission regulations. This does not include snowplow equipment. Price of Chassis in Year of Purchase siio,000 sioo,000 S�o,000 Sso,000 $�o,000 Sao,000 $so,000 Sao,000 $30,000 $20,000 $10,000 $- 199] 2004 2005 2009 2010 2014 Yed� After much deliberetion and research, staff suggests the new Westem Star dump truck. The state contrad for the Westem Star truck expired the end of April, however Boyer Ford stated they will hold the current price for this Council meeting. They estimate anywhere from a 3-5°k increase when the new state contrad comes out in a few months. Purchasing two new Western Star dump trucks will provide many benefits to the City. It is a more efficient piece of equipment than what the City currently has for the following reasons: 1. Less time spent repairing equipment thus increasing productivity. 2. More fuel efficient compared to current 1997 dump truck. 3. Environmentally friendly with fewer emissions. 4. Increased driver visibility. 5. Improved wing and plow system thus minimizing maintenance costs. 6. Improved technological advances in the snowplow industry to ease operations. Replacement Justification Snow removal is one of the key functions of Public Works. As front line trucks, both have to be reliable and in service consistently for Public Works to attain their mission of providing safe roadways for the community in a timely manner. Breakdowns of equipment result in decreased efficiency and lost productivity. The graph below depicts the last 12 years of maintenance costs for the trucks. The annual maintenance cost for each truck is becoming costly due to their age. In 2013 alone, truck unit 4004 had almost $15,000 for maintenance; the second highest amount for that truck to date. Each truck is estimated to be worth $17,500. Maintenance Cost Comparison Between Current Trucks 5so,000 - $zs,000 - $m,000 - � S1s,000 I. $20,000 - $s,000 - 6 7 S 9 10 11 12 13 14 15 16 ll �Numbers for years 1-5 are unknown. Year —aooa —aoos Some correlation can be made with the amount of snow and cold weather Cottage Grove receives compared to the amount of maintenance the trucks need. With a low snow fall total, the trucks are under less stress which leads to fewer breakdowns and a lower maintenance cost. Conversely, large snowfall totals require more maintenance and repairs. The table below depicts the total estimated maintenance costs comparing one new vs. one existing dump truck. The numbers are added together each year throughout this graph to develop a total amount spent by year 15. Total Estimated Maintenance Cost Comparing New Vs. Existing Truck saoo,000 $zso,000 - $zoo,000 - H V $150,000 �� $100,000 - $50,000 � Year -&isting Dump Truck -New Dump Truck The table and charts below reflect estimated ownership costs for purchasing newversus retaining the existing dump truck. It's important to note that these charts do not reflect any negative impacts of lost productivity. However, it's safe to presume that the older any unit gets, the more it will be out of service for maintenance and repairs. The chart and tables only represent one dump truck with snowplow equipment. The estimated maintenance cost of $10,500 for 2014 is based on the last three Existing Dump Truck rs ave rage. Year Capital Cost Est Maintenance Cost Resale Value Cost of Ownershi 2014 0 $ 10,500 $ 17,500 $ 2015 $ 11,340 $ 16,100 $ 2016 $ 12,247 $ 14,812 $ 2017 $ 13,227 $ 13,627 $ 2018 $ 14,285 $ 12,537 $ 2019 $ 15,428 $ 11,534 $ 2020 $ 16,662 $ 10,611 $ 2021 $ 17,995 $ 9,762 $ 2022 $ 19,435 $ 8,981 $ 2023 $ 20,990 $ 8,263 $ 2024 $ 22,669 $ 7,602 $ 2025 $ 24,482 $ 6,994 $ 2026 $ 26,441 $ 6,434 $ 2027 $ 28,556 $ 5,919 $ 2028 $ 30,841 $ 5,446 $ 8%annual increase 8%annual decline $ 12, 740 13, 535 16, 431 17.585 20, 216 21, 708 25, 090 27, 000 297,151 '� '� '�� '�� '��' '��' ti� ti ti ti�' ti ti ti�' ti� ti ti o , ti o ti o ti o ti o ti o ti o ti o ti o ti o ti o ti o ti o ,yo The percentage of decline is spread evenly throughout the 15 years to equal about 25% of the purchase price based upon dealer's recommendation. New Dump Truck Year Capital Cost Est Maintenance Cost Resale Value Cost of Ownership 2014 *$188,667 $ 3,000 $ 173,574 $ 18,093 2015 $ 3, 240 $ 159, 688 $ 17,126 2016 $ 3,499 $ 146,913 $ 16,274 2017 $ 3,779 $ 135,160 $ 15,532 2018 $ 4, 081 $ 124, 347 $ 14, 894 2019 $ 4,408 $ 114,399 $ 14,356 2020 $ 4, 761 $ 105, 247 $ 13, 913 2021 $ 5,141 $ 96, 828 $ 13, 561 2022 $ 5,553 $ 89,081 $ 13,299 2023 $ 5, 997 $ 81, 955 $ 13,124 2024 $ 6,477 $ 75,399 $ 13,033 2025 $ 6,995 $ 69,367 $ 13,027 2026 $ 7, 555 $ 63, 817 $ 13,104 2027 $ 8,159 $ 58,712 $ 13,264 2028 $ 8, 812 $ 54, 015 $ 13, 509 8%annual increase 8%annual decline $ 216,108 *Includes purchase price minus trade in estimated $17,500. Cost of Ownership Each Year $as,000 . $ao,000 � $zs,000 � $zo,000 - 0 u $is,000 � $io,000 - $s,000 , 5- , , , �, �, �. �, �, �. �. �. �. ��. �. �, 2014 2015 2016 20ll 2015 2019 2020 2021 2022 2023 2024 2025 2026 2027 2025 —New DumpTruck (maintenance cost and lost resale value included) �—Existing Dump Truck (maintenance cost and lost resale value included) Year Recommended Purchase In consideration of the analysis above, staff is recommending the following purchases: (2) Western Star single-axle cab chassis (2) Snowplow and related equipment Motor Vehicle Tax for 2 cab chassis Estimated resale value of (2) Ford Louisville dump trucks Total with Trade-in Budgeted Amount $189, 826.62 $210,190.00 $12,316.86 -$35,000.00 $377,333.48 $360,000.00 The Western Star Cab Chassis will be purchased from Boyer Ford, which is on the state contract 60992. The snowplow equipment will be purchased from Aspen Equipment, which is on the state contract 61338. Recommendation Consider approving the purchase of two new Western Star dump trucks with snowplow equipment for a combined purchase price of $377,333.48.