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HomeMy WebLinkAbout15.C.3 Purchase of Truck for Traffic Sign Operations /6,c.3~ CITY OF SHAKOPEE Memorandum TO: Mayor & City Council Mark McNeill, City Administrator Bruce Loney, Public Works Director FROM: Michael Hullander, Public Works Supervisor SUBJECT: Purchase of Truck for Traffic Sign Operations DATE: October 19,2004 INTRODUCTION: The 2004 Capital Equipment Budget identified a need in the Street Division to purchase a truck that is designed specifically to make sign maintenance operations more efficient. Staff had estimated this purchase to be $50,000.00. After researching with other communities, staff has determined to achieve the most efficiency and get the best fuel economy; this truck will cost $65,773.34. BACKGROUND: As Shakopee grows Public Works staff continues to research new technology and equipment to improve operations. Staff has identified two areas that need to be addressed to make traffic sign operations more efficient. The first area was to acquire new computer technology in the manufacture, logging of inventory and sign locations, and reporting of maintenance activities. Computer software has been purchased for the latter two and our existing information will be downloaded over the winter months. Computer software and equipment for the manufacture of signs has been included in the 2005 Street Budget. The second area that needed to be addressed was to research what other communities were doing to make sign maintenance operations more efficient while using less labor. Public Works uses two employees to install or remove street signs today. Staffuses a pick-up truck with a tow behind air-compressor to operate the post pounder and if a sign needs to be removed a loader is driven to the site to pull out the old post. By using the crane mounted on the new sign truck to pull out posts and hold the post pounder we can eliminate one employee and the loader from the operation. The Street Division had requested an additional pick-up truck for 2005, but with the addition of a dedicated sign truck we felt the additional pick-up truck was not needed. Most of the cities utilize a truck specifically set-up with the necessary equipment needed to make installation, removal and repair in the field. This eliminates making trips back to the shop for additional equipment, tools, supplies or labor. The City of Bloomington convinced us that we could save time and labor by purchasing a truck designed with the proper equipment and tools on board to make any repair in the field 95% of the time with one employee. Although the City of Chaska was the lone exception, they run their operations the way we do today, they are very interested at looking at this type of set-up to lower their labor costs. Staffis requesting to use State bid pricing, Contract #433300, for the purchase of the Cab and Chassis from Elk River Ford for the price of$28,158.60 including tax. We would like to note that staff is recommending diesel over the V-I 0 Gasoline Engine for better fuel economy. Staff is also requesting to use State bid pricing, Contract #432636, to purchase a Fiberglass Utility/Service Body, Installation and Equipment from ABM Equipment &' Supply, Inc. for $37,614.74. Some of the equipment items included in this set-up are an air-compressor, welder, torches and small crane. The truck will have storage areas for signs, posts, hardware, brackets and tools. This truck could also be used by the Sanitary Sewer Department for lift station maintenance and the Fleet Maintenance Division could use it for emergency equipment repairs in the field. When staff estimated the purchase price of this vehicle, ($50,000.00) we had not fully researched the types of equipment needed to make this truck efficient. The diesel engine increases the cost $4,000.00 and the crane an additional $10,000.00, without factoring in these two items staff underestimated the cost of this vehicle. The total cost of this purchase would be $65,773.34 including sales tax. This vehicle will have a 15-year life cycle. ALTERNATIVES: 1. Authorize staff to use State bid pricing to purchase one new Cab & Chassis from Elk River Ford for the price of $28,158.60 and to purchase a Fiberglass Utility Body with Equipment from ABM Equipment & Supply, Inc. for the price of $37,614.73. 2. Deny the purchase at this time. 3. Table for additional information. RECOMMENDATION: Staff recommends alternative number J . ACTION REQUESTED: Move to authorize staff to use the State bid pricing to purchase one New Cab & Chassis from Elk River Ford for the price of$28,158.60 and a Fiberglass Utility Body with Equipment from ABM Equipment & Supply, Inc. for the price of $37,614.74 with the funds to be expended from the Internal Service Equipment Fund. ~.~ Michael Hullander Public Works Supervisor G:\Management\MEMOS\EQUlPMENT\trafficsigntruck 1 0 1904.doc 0 .~"'. . ''1t -< ~." , c:::s .~; i.... oi . .' .j ~~~~ . .. ,~...i,...-><< ":.."', ~3'~~~~~ - .' J, :' ~. '; :..-''-. - .",.\6 ~, ...or . .... '6 ~J~ i -. "', ".~~' ~ ,.~~..~ ,... . .'. ,. ~l"" '..... v trr'"". .... )at.' l ' ~ 'N<-;... -' ~ "<:;.,." ~ot I~~ I :~'''' '- .. ~ - -~-_. I ~............- &Il. 'I' _ ~- - fr- .- c~r:1 ~ - . '- , Joe .r 't N. -i': > ...-~ J.:. .' -' '. . '=' ~. .. - -- ,,- -- -- .--- .' .)'?'-".:..,............~.."-e--......_,___ i~ -- ., j .~.. ;f . _.. -,. \ ! ' . t . . ' ~ .. . 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