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CR 98-16 Award Purchase Tandem Axle Dump TruckJanuary 22, 1998 Proposed Action. Staff recommends adoption of the following motion: "Award the Purchase Order for One (1) Tandem Axle Cab and Chassis Truck to Boyer Ford Trucks for a 1998 Ford Model LT8501 Tandem Axle Cab and Chassis." Overview. In the 1998 City of Hopkins Equipment Replacement Plan the City budgeted for One (1) Tandem Axle Plow Truck. The proposed purchase is being bought off of the State of Minnesota Bid for Heavy Trucks. As part of the State's Cooperative Purchasing Venture, the City is allowed to purchase trucks and equipment at the same cost as the State. Primary Issues to Consider. • Is the award to Boyer Ford Truck for One (1) Tandem Axle Cab and Chassis in the best interest of the City? • Is the State bid within budgeted amounts? Supporting Information. • Detailed Background. • Analysis of Issues. it Norbert Kerber Equipment Services Superintendent AWARD OF PURCHASE ORDER TANDEM AXLE DUMP TRUCK Council Report 98 -16 Detailed Backaround. The City currently utilizes three Tandem Axle Dump Trucks and two Single Axle Dump Trucks in the Street division. The dump trucks are used for snowplowing and sanding, and hauling of various materials such as snow, dirt, asphalt, leaves, and street sweepings. Analysis of Issues. • Is the award to Boyer Ford Truck for One (1) Tandem Axle Cab and Chassis in the best interest of the City? In July of 1997 a representative approached City staff from Boyer Ford Truck. The representative informed us that Ford Heavy Trucks was being sold to Freightliner Trucks of North America and that there were about 87 slots available to purchase a 1998 Cab and Chassis at 1997 State bid prices. City staff proceeded in ordering a cab and chassis to our specifications with the understanding that we were not committed to purchasing the vehicle unless our budget was approved. At this time the new truck is sitting at Boyer Truck waiting for our approval. If we decide not to purchase this unit we will need to re -bid the unit and the cost will almost certainly increase. Also, most manufacturers have about a nine -month backlog of orders at this time. City staff had a concern about purchasing a truck that was the last of a series. Fortunately, the new truck being offered by Freightliner called the "Sterling" is exactly the same as the Ford we are requesting to purchase and Freightliner has no plans of changing the truck in the coming years. City staff feels confident that the proposed purchase is the best value for the City's money. • Is the bid within the budget amount? The City budgeted $83,000.00 in the 1998 Equipment Replacement Plan for the complete truck with box and snow removal equipment. The cost for the 1998 Ford Tandem Axle Cab and Chassis is $54,770.00. The City estimate for the cost of the cab and chassis was estimated at $51,500.00. The increased cost was due to a price increase of $2,500.00 in late 1997 and the addition of air conditioning and a passenger side door window to allow for better visibility when plowing.