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W N O f EW Report Number 14 -059 <br />Agenda Section VI -6 <br />the city that works for you Council Meeting Date March 25, 2014 <br />REQUEST FOR COUNCIL CONSIDERATION <br />ITEM DESCRIPTION: AUTHORIZATION TO PURCHASE A 2014 INTERNATIONAL <br />SINGLE AXLE DUMP TRUCK WITH SNOW EQUIPMENT <br />DEPARTMENT HEAD'S APPROVAL: C:Mv/ <br />CITY MANAGER'S APPROVAL: <br />No comments to supplement this re jin�tagreement Comments attached <br />Recommendation: Authorize entering with Astleford International and Crysteel <br />Truck Equipment to order a new 2014 single axle dump truck for the replacement of City Vehicle #005, <br />an International purchased in 2000. <br />Financial Impact: This truck and equipment will be purchased under Minnesota State bid. The cost of <br />the vehicle is as follows: <br />Contract # 60983. from Astleford International <br />Vehicle Price — Cab & Chassis $77,660 <br />Less Trade -in (from #865 & #025) $3,000 ** <br />Sub -Total $74,660 <br />MN Excise Tax (6.5 %) 4,853 <br />Total Price of Truck Chassis $79,513 <br />Contract # 61340. from Crvsteel Truck Eauipment <br />Snow Equipment and Body $102,814 <br />Sales tax $ 0 Tax exempt due to 2014 law change <br />Less Snow Equip Trade -in (from #987) 5,000 <br />Total Price for Equipment $ 97,814 <br />Grand Total <br />*A 2014 replacement cost of $174,791 for this vehicle has been programmed in the Fleet Replacement <br />Fund. The acquisition costs may not be the final costs based upon trade -in values. <br />* *The chassis from Vehicle #005 will remain as a standby truck in the snow fleet. Hence, there will be no <br />trade -in for #005. However, Astleford International has offered the City $3,000 for City vehicle #865 & <br />City equipment #025 (truck and pothole patch unit). Other methods to sell 4865 & #025 will be explored <br />by staff, auctions at Minnesota Surplus and The League of Minnesota website. It is anticipated the <br />market price will bring $7,500, higher than the $3,000 trade -in offered. <br />The original cost with taxes of #005 was $88,692. The replacement cost not including trade -in is <br />$180,522. Over the last 15 years, the annual rate of increase for this replacement vehicle was 5.21 <br />percent. <br />Explanation: The purpose of this item is to obtain Council authorization to purchase a 2014 <br />International single axle dump truck with all snow equipment. This vehicle will be used by the Public <br />