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111rN of ,�. Report Number 14 -058 BRMKAf the city that works I you Agenda Section VI -5 Council Meeting Date March 25, 2014 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: AUTHORIZATION TO PURCHASE A 2014 STEPP TRUCK MOUNTED PREMIX ASPHALT HEATER DEPARTMENT HEAD'S APPROVAL: Caw CITY MANAGER'S APPROVAL: No comments to supplement this report Comments attached Recommendation: Authorize entering into an agreement with Stepp Manufacturing to order a new 2014 truck mounted premix asphalt heater for the replacement of City equipment #025, a Stepp premix heater purchased in 2001. Financial Impact: This equipment will be purchased under Minnesota State bid. The cost of the equipment is as follows: Contract # 67054, from Stepp Manufacturing Equipment Price $61,212 Sales Tax $ 0 Tax exempt due to 2014 law change Grand Total $61,212* *A 2014 replacement cost of $71,317 for this equipment has been programmed in the Fleet Replacement Fund. The original cost with taxes of City equipment #025 was $42,760. The replacement cost is $61,212. Over the last 14 years, the annual rate of increase for this replacement vehicle was 2.80 percent. Explanation: The purpose of this item is to obtain Council authorization to purchase a 2014 truck mounted premix asphalt heater. This unit will be used by the Public Works Department for the use of patching streets and overlaying water main break sites. It is basically a special truck box for keeping asphalt material at a high temperature until it is used. The box also has a hot tack oil tank for making better and more permanent patches. We have to drive to St. Paul or Blaine to get fine graded asphalt material for patching. The travel time can take over an hour. If the material cools down, it does not make a good patch and the asphalt mix material is wasted. It will be mounted on City vehicle #987, a 1998 International dump truck that was previously used as the standby truck in the snow plow fleet. This new unit is scheduled for replacement on a 12 -year cycle. The new unit will replace City equipment #025, a Stepp premix heater purchased in 2001. The existing premix heater is mounted on City vehicle #865. City Vehicle #865 and City Equipment #025 will be disposed of together either by trade -in or auction. [Refer to the 2014 International Single Axle Truck Council Report] The recommendation is to enter into an agreement with Stepp Manufacturing to pay for and take delivery of a 2014 Stepp truck mounted premix heater. _�4 4____ Grant . Wyffels, P.E. Director of Public Works Attachments: Price quote / Picture Capital Asset Replacement Justification Form