CCP 11-26-2012 - Laserfiche WebLink

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libilIZEW‘ Report Number 12-271 Agenda Section VI-2 the city that woes for Council Meeting Date November 26,2012 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: AUTHORIZATION TO PURCHASE A 2013 INTERNATIONAL SINGLE AXLE DUMP TRUCK WITH SNOW EQUIPMENT DEPARTMENT HEAD'S APPROVAL: Cl / CITY MANAGER'S APPROVAL: No comments to supplement this report 1 Comments attached Recommendation: Authorize entering i o agreement with Astleford International and Crysteel Truck Equipment to order a new 2013 si e axle dump truck and to pay for and take delivery after January 1,2013 for the replacement of City Vehicle#988, an International purchased in 1988. Financial Impact: This truck and equipment will be purchased under Minnesota State bid. The cost of the vehicle is as follows: Contract#31563,from Astleford International Vehicle Price—Cab&Chassis $75,069 Less Trade in Price $20,000** Sub-Total $55,069 Sales Tax(6.875%) $ 3,786 Total Price of Vehicle $58,855 Contract# 39241, from Crysteel Truck Equipment Box, snow and body Equipment $81,578 Sales tax(6.875%) $ 5,608 Total Price for Equipment $87,186 Grand Total $146,041* *A 2013 replacement cost of $180,600 for this vehicle has been programmed in the Fleet Vehicle Replacement Fund. The acquisition costs may not be the final costs based upon trade-in values, sales tax, and other added equipment. **The dealer has quoted a firm trade-in price of$20,000 for Vehicle #988. Other methods to sell this vehicle will be explored by staff. The original cost with taxes of #988 was $85,869. The replacement cost not including trade in is $167,416. Over the last 15 years, the annual rate of increase for this replacement vehicle was 4.89 percent. Explanation: The purpose of this item is to obtain Council authorization to purchase a 2013 International single axle dump truck with all snow equipment. This vehicle will be used by the Public Works Department for the use of plowing, sanding, maintaining streets, and general materials handling for both the Public Works and Parks Departments. This vehicle is scheduled for replacement on a 15-year cycle. The new vehicle will replace Vehicle#988, an International purchased in 1988 which is scheduled to be replaced in 2013.