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1e 2007 CIP Light Duty Vehicle Purchases CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227,1180 Fax: 952,227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227,1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227,1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 1591 Park Road Phone: 952.227.1300 Fax: 952.227,1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us ie -- MEMORANDUM tJ. TO: Paul Oehme, Public Works Director/City Engineer''00 FROM: Charles Siegle, Equipment Superintendent DATE: March 26, 2007 ()~ SUBJECT: 2007 CIP Light Duty Vehicle Purchases - PW016MMM REQUESTED ACTION Authorize purchase of light duty vehicles for street, utility and building departments. DISCUSSION Annually, the City considers replacement of vehicles that have reached their average life expectancy and are showing signs of needing major maintenance. It has been the City's practice to replace these vehicles before major repairs are required. All of the vehicles proposed to be replaced are used basis and have to be reliable to maintain current standard City services. DISCUSSION/JUSTIFICA TION 1. STREET DEPARTMENT-PICKUP The 1991 Ford pickup to be replaced has severe rust. This vehicle has miles and 16 years of use and will have a big potential of needing expensive repairs in the near future. This truck will be sold at auction in the fall with an estimated sale price of $1,500 if a new replacement vehicle is purchased. The new pickup will be used for day-to-day operations in the Street Department which includes towing equipment such as skid loaders and other equipItlent. 2. BUILDING DEPARTMENT - PICKUP The 1992 Ford Ranger pickup scheduled for replacement has 51,000 miles and has severe rust. This vehicle is 15 years old and will need expensive repairs in the near future due to rusted brakes, body work and total fuel line replacement. If a new vehicle is purchased, the 1992 Ranger will be sold at the fall auction with an estimated resale value of $1,000 to $1,500. The new pickup would be used for building inspections. The City 01 Chanhassen . A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play. Paul Oehme 2007 CIP Light Duty Vehicle Purchases Page 2 3. UTILITY DEPARTMENT The Utility Department is in need of another vehicle due to an added treatment plant operator the City hired last year. Staff is recommending the Utility Superintendent's vehicle (Chevy 2500 pickup) be used for the new position. The replacement vehicle for the Utility Superintendent is proposed to be a lighter duty vehicle with better gas mileage. Staff is recommending a Ford Escape. BIDS AND QUOTES The following quotes have been received from state bids for the two pickups and utility department vehicle. 1. STREET DEPARTMENT - PICKUP 2007 Chevrolet 2500 lID 4x4 Pickup $ 21,728.20 2. BUILDING DEPARTMENT - PICKUP 2007 GMC Canyon Pickup $ 17,158.67 3. UTILITY DEPARTMENT - 2008 Ford Escape $ 18,000.28 TOTAL $ 56,887.15 The budgeted amount in the 2007 CIP for these three vehicles is $89,000. Tool boxes and strobe lights will need to be purchased and installed for these vehicles at an estimated total cost for all three vehicles of $2,000. City staff will install all the necessary equipment. SUMMARY The City's fleet continues to go past the normal replacement age of ten years for most vehicles. It is important to replace these units that are over 15 years old at this time. RECOMMENDATION It is recommended that the City Council approve the bids for the purchase of these vehicles. Attachments G:\ENGIBudget & CIP\CIP\2007\Purchase CIP vehicles Memo.doc Capital Improvement Program City of Chanhassen, MN ( I 2007 thru 2011 Account # 1 400-4120-4704 Account # 3 Contact Unassigned . Department Major Equipment Type Vehicles Useful Life Unassigned Category Street Equipment Priority nla Total Project Cost $94,000 Project # EQ-029 Project Name Light Duty Trucks: Public Works Account #2 Description I Provides for scheduled replacement of light duty trucks in the street and garage departments. Repla~ement units are generally purchased early in . the year in order to accommodate the time frames established by Hennepin County and the State ofMN Cooperative Purchasing Program. Justification I These vehicles are used for a variety of services throughout the conununity. The average replacement age is 13 years. These purchases are consistent with the Vehicle Replacement Program. Expenditures Vehicles 2007 31,000 Total 31,000 2008 32;000 32,000 2009 31,000 31,000 2010 2011 Total 94,000 94,000 Funding Sources Capital Replacement Fund Total 2007 31,000 31,000 2008 32,000 2009 31,000 31,000 2010 2011 Total 94,000 .94,000 32,000 Operational Impact/Other I These purchases will include a limited warranty and will reduce annual maintenanGe'and repair costs as compared to the vehicles replaced. Capital Iri1provement PrograID .. City ofChanhassen, MN Project # EQ-015 Project Name Community Dev.: Light Duty Trucks 2007 thru 2011 Account # 1 400-4107-4704 Account # 3 Account #2 ., ..... '.,. ",._ . _..... _ ..._.,..;..... . . . - "," . .",'.~ ". _.~... . '." .' n. . Contad Unassigned Department Major Equipment Type Vehicles Useful Life Unassigned Category Community Development Priority nJa Total Project Cost $168,000 Description I. Provides for scheduled replacements, starting in 2001. These purchases are consistent with the Vehicle Replacement Schedule. Replacement units are generally purchased early in the year to accommodate the time frames established by Hennepin County and the State of Minnesota Cooperative Purchasing Program. Justification I . These vehicles are used to provide building inspection services throughout the community. ?be average replacement age is over 10 years. Expenditures Vehides Total 2007 26,000 26,000 Funding S.ources .. . Capital Replacement Fund Total 2007 26,000 26,000 2008 30,000 30,000 2009 55,000 55,000 '2010 28,000 28,000 2011 29,000 29,000 Total 168,000 168.000 2008 30,000 30,000 2010 28,000 28.000 2011 29,000 29,000 Total 168,000 168,000 2009 55,000 55,000 Operational Impact/Other These purchases will include a limited warranty and will reduce the annual maintenance and repair costs as compared to the vehicles replaced. 22 Capital Improvement Program City of Chanhassen, MN 2007 -thru 201} Contact Unassigned Department Major Equipment Type Vehicles Useful Life Unassigned Category Utilities Priority n/a Total Project Cost $156,000 Project # EQ-062 Project Name Light Duty Trucks: Utilities Account # 1 700-0000-4704 2007 Account #2 701-0000-4704 2009 Account # 3 701-0000-4704 2011 Description I This allows for replacement of existing vehicles in the Water and Sewer department. Justification This replaces pickups in accordance with the vehicle replacement plan. Expenditures Vehides 2007 32,000 Total 32,000 2008 2009 54,000 54,000 2010 2011 70,000 70,000 Total 156,000 156,000 Funding Sources 2007 2008 2009 2010 2011 Total Sewer Utility Fund 54,000 70,000 124,000 Water Utility Fund 32,000 32,000 Total 32,000 54,000 70,000 156,000 Operational Impact/Other 46