HomeMy WebLinkAbout5.B.7. Authorize 2007 Truck Purchases for Public Works
5. ~.1t
CITY OF SHAKOPEE CONSENT
Memorandum
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Mike Hullander, Public Works Supervisor
SUBJECT: 2007 Truck Purchases for Public Works
DATE: June 14, 2006
INTRODUCTION:
Public Works has indicated in the 2007 Internal Service Fund Budget to purchase three
large trucks. Street Division: One single axle dump truck replacing Unit #104 and one
single axle dump/hook truck which is an addition to the fleet. (The hook would allow
staff to use this truck for other purposes besides plowing and hauling materials. The hook
system set-up would cost an additional $10,000 to $12,000 above the single axle plow
truck cost. Staff would budget for additional equipment in 2007 such as a chipper box,
water tank, contractor's box, and ipossible roll-off.) Sanitary Sewer: Replace Jetter, Unit
#126. . Staffhad budgeted $530,000 in the 2007 Internal Service Fund.
DISCUSSION ITEM:
Staff has been informed by its' v~ndors there will be a large increase in the price of these
trucks for the next State Contractl A required reduction in engine emissions will increase
the cost approximately $4,600 to $6,000. Due to an increase in steel prices, they are
estimating a 5% cost increase for the cab and chassis. The total cost increase due to
engine emissions and steel prices is estimated at $11,000 to $12,500 per single axle plow
trucks.
J-Craft has informed staff of a possible .10% to 15% increase for the box, plows, hoist,
and sander due to increased steel prices. This will add an additional $6,500 to $10,000 to
the price each single axle plow truck.
With the three increases stated above, the total cost could increase $17,500 to $22,500
per single axle plow truck if we were to wait for the next State Bid Contract.
The combined costs of emissions and steel prices will increase the costofthe sewerjetter
$10,600 to $12,000 on the State Contract. Due to steel price increases we would expect
an increase of $6,000.00 to $9,000.00 from Flexible Pipe Tool Company on the jetter
equipment. Total possible price increases on the sewer jetterifwe wait until 2007 would
be $16,600.00 to $21,000.00. Staffhas budgeted $250,000.00 for a Jetter/vac combo, but
does not believe it is needed at this time.
The total cost increase for the three requested vehicles would be estimated at $51,600 to
$66,000. If Council concurs, staff is requesting to order as soon as possible from this
years State Bid Contract -before all the slots are filled so we will not have to pay these
increases.
J-Craft demonstrated a single axle plow/hook truck onJune 12th. They called Public
Works because this truck is similar to our existing hook truck. The truck is set-up with a
front plow, wing plow, hoist, and a V -box for salt/sand applications. Staff is not
recommending purchasing this truck although it would have been on 2005 State Bid
Pricing. The Demo unit has a 350 horse power engine that adds an additional $10,000.00
to the price ofthetruck. The price increase from J-Craft from 2005 to 2006 is $4,103.44,
so utilizing 2006 State Bid Pricing, and ordering our specified275 h.p. staffwould save
$6,000.00 on the total price of this unit. Staffhasbudgeted $150,000 for the single axle
plow/hook truck in the 2007 budget. Ifwe order now the estimated price would be
slightly less than $149,000.00. Ifwe wait we could see a price of $166,500.00 to
$171,500.00.
2006 2007
Jetter Truck $119,666.60 $136,266.60 to $140,666.60
Single axle plow trk. $134,383.21 $151,883.21 to $156,883.21
Single axle plow/hook trk. $148,571.55 $166,071.55 to $171,071.55
AL TERNA TIVES:
1. Authorize the purchase ofthe single axle plow truck, single axle plow/hook truck,
and sewer jetter truck under the 2006 State Bid Contract with savings estimated at
$51,600 to $66,000.
2. Delay the purchase of the single axle plow truck, single axle plow/hook truck, and
sewer jetter truck.
RECOMMENDATION:
Staff recommends alternative No.1.
RELATIONSHIP TO VISIONING:
Goal E, financially strong. Strategy 10, ensure City's fiscal health.
ACTION REQUIRED:
Motion to authorize staff to purchase a single axle plow truck, single axle plow/hook
truck and sewer jetter truck on the 2006 State Bid Contract.
Mike Hullander
PublicW orks Supervisor