Loading...
HomeMy WebLinkAbout5.D.4. Purchase Box, Sander and Hook System and Authorize the Sale of the Existing V-Box and 700 Series Hook System s.o.i CITY OF SHAKOPEE MEMORANDUM TO: Mayor & City Council Mark McNeill, City Administrator Bruce Loney, Public Works Director CO~IlA-~.T .",; t..l~ .. <' '0 ,{~: ;. , SJ~~J~' FROM: Michael Hullander, Public Works Superintendent DATE: April 22, 2008 SUBJECT: Purchase of Box, Sander and 800 series Hook System and sell on Consignment our existing V-Box and 700 series Hook System. INTRODUCTION: Public Works is requesting to sell the V-Box and 700 series Hook System on consignment and purchase a Box, Sander and 800 series Hook System from J-Kraft Equipment. Public Works consulted with Finance regarding this and was recommended that this purchase should come out of the Equipment Fund with the proceeds of the sale of V-Box and 700 Series Hook System to go back into the Equipment Fund. BACKGROUND: In 2007 Public Works purchased a Single Axle Dump Truck with a 700 Series Hook System and V -Box for the Street Division for plowing purposes. The intent of the hook system is to be able to use one cab and chassis with a variety of equipment for year-round use. The 2008 Street General Fund Budget under Capital Expenditures identified a need to purchase a Contractor Style Box to be used on the hook system for normal hauling and dumping of material for the remainder of the year. The V-Box is designed for winter season ice-control activities. Staff budgeted $15,000.00 for this purchase but after further analysis believes selling the V-Box and upgrading the hook system and box is a more cost effective and efficient operation and expenditure. We are not recommending to spend the $15,000.00 which could be used for the 4% under spend for 2008. Staff has recently purchased two roll-off dumpsters and a tire cage for this truck which were approved in the 2008 budget and these attachments can be finalized depending on council's decision and approval on what hook system is selected. During the 2007-08 snow season staff was not pleased with the performance of the v-box which uses a belt to move the material to the spreader and also integrates a pre-wetting system. A pre-wetting system uses salt brine sprayed directly on the salt at the spreader for quicker melting and less drift of the salt to the sides of the roadway. Weare finding -, '. . . ,'~ . , . that the use of clear-lane which is a product all ready pre-wetted from the vendor a much more cost effective alternative. Below are concerns for making this recommendation: . Operators of the truck reported they were not comfortable with making turns because of the high center of gravity on the frame of the hook system and there is fear of roll-over. . The pre-wetting system filters continually plug-up which causes inefficient operator down-time cleaning them. . The box does not hold as much material as a standard box. . Operators reported the need to have another person available while un-loading. . The belt has added additional maintenance costs to the operation. Upon further analysis of the concerns of the V -box and other operational needs, staff has the following recommendations for purchase: . Staff would like to replace the v-box with a standard box. The total cost with tax for this purchase is $16,584.18. . Staff is requesting to purchase an 800 series hook system to replace the 700 series system due to the operational requirements to dump loads without the box having to slide back for the hoisting capability. This is a safer and more efficient way to dump loads because of the locking mechanism in the 800 series hook system. The cost of this upgrade is $17,463.87. . Staff is requesting to purchase a new sander designed for more efficient salt spreading than our existing spreaders. Existing spreaders can not be calibrated low enough to put out smaller amounts of material that are needed to adequately melt ice and snow and still be sensitive to the environment. It is also more cost effective to reduce salt out-put. The cost of this spreader is $5,601.90. Staff would also like council to declare the existing v-box and 700 series hook system as surplus equipment and authorize staff to have J-Kraft Equipment sell them on consignment. Staff and J - Kraft believe we can sell this equipment for estimated revenue of $19,000.00 to $20,000.00. This is an estimate so the amount could be higher or lower. The revenue of the sale of this equipment would go back into the Equipment Fund. The total purchase price, using State Bid Pricing, of all the equipment is $39,649.95. Total new dollars for this purchase would be approximately $20,000.00 and would come out of the Equipment Fund per the Finance Director. Again this is based on what we can sell the existing v-box and 700 series hook system for and costs could be slightly higher or lower depending upon the [mal sale on consignment. ALTERNATIVES: 1. Authorize staff to purchase a Box, 800 series Hook System and Sander using State Bid Pricing for $39,649.95 from J-Kraft Equipment with the cost to be expended from the Equipment Fund and also declare the V -Box and 700 series Hook System as surplus equipment and authorize staff to sell on consignment with J-Kraft with the proceeds from the sale to reimburse the Equipment Fund. 2. Authorize staff to purchase a Box, 800 series Hook System and Sander using State Bid Pricing for $39,649.95 from J-Kraft Equipment with the cost to be expended from the Equipment Fund and also declare the V -Box and 700 series Hook System as surplus equipment and authorize staff to sell on consignment with J-Kraft with the proceeds from the sale and $15,000.00 from the Street Division General Fund Budget to reimburse the Equipment Fund. 3. Deny the request. 4. Table for additional information. RECOMMENDATION: Staff Recommends Alternative Number One as we believe the best option is utilizing this truck with a better hook system and box that can be used year round with a sander that can be calibrated for efficient salt usage and also use the $15,000.00 for the 2008 4% under spend. ACTION REOUESTED: Authorize staff to purchase a Box, 800 series Hook System and Sander using State Bid Pricing for $39,649.95 from J-Kraft Equipment with the cost to be expended from the Equipment Fund and also declare the V-Box and 700 series Hook System as surplus equipment and authorize staff to sell on consignment with J-Kraft with the proceeds from the sale to reimburse the Equipment Fund. ~.~ Michael Hullander Public Works Superintendent