HomeMy WebLinkAbout4I, Pickup Truck Purchase
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Request for Council Action
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Prepared By: Greg Hoag, Public Works Director
Council Meeting Date: January 12,2009
Pick-Up Truck Purchase
Budgeted Amount:
$35,000 (In 2010)
Actual Amount:
$25,682.68
Plus tax, license, and
registration
Supporting Documents:
1. Memo from Greg Hoag dated January 12, 2009
Funding Source:
Building/Equipment Capital
Fund
MEMORANDUM
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DATE:
January 12, 2009
TO:
Mayor and City Council
Ron Moorse, City Administrator
FROM:
Greg Hoag, Public Works Director
SUBJECT:
Pick-Up Truck Purchase
BACKGROUND
On October 31, 2008 one of our pick-up trucks was involved in an accident. Our vehicle was rear
ended by another vehicle. At the December 15, 2008 City Council Work Session a discussion was
held regarding the option of early replacement of this vehicle instead of repairing it, as it is scheduled
for replacement in 2010. The City Council directed staff to obtain quotes for replacing the vehicle.
Staffwas also directed to look at the cost difference ifit were replaced by a one ton (F350) rather
than a three quarter ton (F250). Staff reviewed the difference in cost between the two types of trucks
and found that the difference in cost is approximately $1,200. This is a small cost for the increased
capacity of the truck.
Staffhas contacted several vendors authorized to sell vehicles at State of Minnesota contract pricing.
A new 2009 vehicle which would meet our needs could be ordered from the factory at a base cost of
$22,057.04 plus tax and license. The current wait time for a new vehicle is approximately four
months. Boyer Ford located in Minneapolis has a new 2008 model available and ready for
immediate delivery. The cost of each of this vehicle is $22,226.00 plus tax and license.
Below is the breakdown of the costs for a new 2008 model Ford F350 and related equipment. The
costs do not include taxes, licensing, or registration.
2008 F350 Truck (Boyer Ford)
Power lift tailgate (Truck Utilities)
Cab protector rack and strobe light (Truck Utilities)
Plow and related controls (Truck Utilities)
Painting of vehicle Arden Hills Tan (Macco)
$22,226.00
$1,944.00
$850.00
$5,272.00
$1,224.95
Total
$31,516.95 + taxes, license, and registration
Page 2
We have already received a damage payment of $4,634.27 from the accident and we have received a
trade - in offer of$I,200 from Boyer Ford for our current vehicle. With these reductions the cost of
the new vehicle is reduced to $25,682.68 plus taxes, license, and registration.
Another reduction the City Council may want to consider is starting to convert our vehicle fleet to
white trucks. This conversion will reduce the cost of the painting of$I,224.95. The white color
would be the new standard for Arden Hills, because it is available from all vehicle manufactures as a
standard color. This reduction would bring the cost to $24,457.73 plus tax, license and registration.
The replacement of the existing vehicle was scheduled to be recommended in the 2010 CIP. Staff
had a budget figure of$35,000 programmed for this replacement. Due to all of the items being
currently available at State Contract pricing and the reductions of the damage and trade - in offer
from Boyer Ford we are able to acquire a new vehicle with a savings of approximately $9,300 by
purchasing it in 2009.
STAFF RECOMMENDATION
Staffrecommends purchasing a new 2008 F350 pick-up truck from Boyer Ford and other related
items from Truck Utilities and Macco for a cost not to exceed $31,516.95 plus taxes, license and
registration, with reductions of $5,834.27 for trade value and damage payment for an actual cost of
$25,682.68.
RECOMMENDED COUNCIL ACTION
Authorize StafftQ purchase a new 2008 F350 pick-up truck and related accessories from Boyer Ford,
Truck Utilities, and Macco for a cost not to exceed $31,516.95 plus tax, license and registration; and
to apply the reductions for damages to the existing pick-up and trade value to reduce the actual cost
to $25,682.68.