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D-10. Approve a Portion of 2016 CIP Vehicle and Equipment Purchases0 CITY OF CBANgASSEN 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 MEMORANDUM TO: Paul Oehme, Public Works Director/City Engineer FROM: Charlie Siegle, Equipment Superintendent ,0entS DATE: March 14, 2016OT�`r' SUBJ: Approve 2016 CIP Vehicles & Equipment Purchases — PW016III PROPOSED MOTION "The City Council approves purchase of vehicles and equipment." City Council approval requires a simple majority vote of the City Council present. DISCUSSION Annually, the City considers replacement of vehicles and equipment that have reached their life expectancy and are showing signs of needing major maintenance. It has been the City's practice to replace these vehicles and equipment before major repairs are required. The vehicles and equipment needing to be replaced are used extensively and have to be reliable to maintain appropriate City services. This year all vehicle purchases are off of the State of Minnesota Contract pricing which is typically the best pricing the City receives. Old equipment is either traded in or sold at auction. Staff has checked past auctions for similar equipment sale prices and received trade-in values from the equipment supplier. Staff's recommendation to trade in the equipment or sell at auction is based on the best financial benefit to the City and is identified under each equipment purchase item. Public Works JUSTIFICATION 7901 Park Place Phone: 952.227.1300 STREET DEPARTMENT — PICKUP Fax: 952.227.1310 The 2002 pickup and snow plow (#112) to be replaced is 14 years old. This truck is in Senior Center fair condition and will be moved over to the Park Department to replace (#416). Truck Phone: 952.227.1125 #416 has rusted brake lines, suspension and body parts. This truck (#416) would be sold Fax: 952.227.1110 on auction with an estimated value of $2,000. Website www.ci.chanhassen.mn.us Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Paul Oehme Approve 2016 CIP Vehicles & Equipment Purchases March 14, 2016 Page 2 UTILITY DEPARTMENT — PICKUP The 2003 pickup (#315) to be replaced is 21 years old. This vehicle is used to maintain the Utility Department infrastructure. The body and brake lines are very rusty. Staff is recommending this truck be sold on auction with an estimated resale value of $2,500. The pickup will be purchased off of the State of Minnesota Contract. UTILITY DEPARTMENT — PICKUP The 2003 pickup (#320) to be replaced is 13 years old. This vehicle will be moved over to the Park Department to replace #412. Truck #412 has a rusty body and brake lines would be sold on auction with an estimated value of $2,000. UTILITY DEPARTMENT — PICKUP Due to an accident that totaled the 2008 Ford Escape (#306), this vehicle will be replaced it with a''/2 -ton 4x4 pickup. PARK DEPARTMENT — PICKUP The pickup (#404) to be replaced is 25 years old. This truck is used for park operations and cleaning park shelters. The truck is rusted from the years of service and should be replaced. This truck would be sold on auction at an estimated value of $800. I W.11 toi 500 11 V.111 1014 NOV III 011913TITN"I" The Toro mower (#453) to be replaced is 16 years old with 4,600 hours of use. This machine has worn bearings and bushings and with the high engine hours it is likely to need engine or transmission work soon. The trade-in value of this trailer is $7,500. PARK DEPARTMENT — TRAILER The 1998 Parks skid loader trailer (#4C) to be replaced is 18 years old. This trailer is in need of brakes, tires and is very rusty. The cost of repair is not worth investing in this trailer. The trade-in value of this trailer is $1,250. COMMUNITY DEVELOPMENT — PICKUP The Community Development pickup (#601) is 12 years old. The body, fuel lines and brake lines are rusting. This truck is used for Building Inspections. This truck would be sold at auction with an estimated resale value of $1,500. CSO — PICKUP The CSO (#704) truck to be replaced is 6 years old. This truck has 140,000 miles on it and will likely need expensive repairs soon with the high miles that are on it. This truck would be sold on auction with an estimated resale value of $6,000. g:\eng\public\pw016 vehicles and equipment\bkgd 031416 cip purchases.doc Paul Oehme Approve 2016 CIP Vehicles & Equipment Purchases March 14, 2016 Page 3 BIDS AND QUOTES STREET DEPARTMENT — PICKUP (EQ -029) 2016 GMC 2500 4X4 Ext. Cab (plus tax, license, registration) $ 28,163.24 2016 Western Pro Plus Snow Plow $ 4,908.00 Strobe light, back rack, accessories $ 742.00 Estimated Auction Value of Vehicle #416 -$ 2,000.00 Total Expenditure $ 31,813.24 Budget Amount $ 42,000.00 UTILITY DEPARTMENT — PICKUP (EQ -062) 2016 GMC 1500 4X4 Pickup (plus tax, license, registration) $ 22,694.81 Toolboxes, strobe light, accessories $ 1,040.00 Estimated Auction Value of Vehicle #315 -$ 2,500.00 Total Expenditure $ 21,234.81 Budget Amount $ 29,000.00 UTILITY DEPARTMENT — PICKUP (EQ -062) 2016 GMC 1500 4x4 Pickup (plus tax, license, registration) $ 22,694.81 Tool box, strobe light, accessories $ 2,160.00 Estimated Auction Value of Vehicle #320 -$ 2,000.00 Total Expenditure $ 22,854.81 Budget Amount $ 29,000.00 UTILITY DEPARTMENT - PICKUP (EQ -062) 2016 GMC 1500 4x4 Pickup (plus tax, license, registration) $ 22,694.81 Tool box, strobe light, accessories $ 2,160.00 Salvage Value of Vehicle #306 -$ 5,567.75 Total Expenditure $ 19,287.06 PARK DEPARTMENT — PICKUP (EQ -100) 2016 GMC 2500 4X4 Pickup (plus tax, license, registration) $ 26,793.61 2016 Western Pro Plus Snow Plow $ 4,908.00 Strobe light, back rack, accessories $ 742.00 Estimated Auction Value of Vehicle #404 -$ 800.00 Total Expenditure $ 31,643.61 Budget Amount $ 30,000.00 g:\eng\public\pw016 vehicles and equipment\bkgd 031416 cip purchases.doc Paul Oehme Approve 2016 CIP Vehicles & Equipment Purchases March 14, 2016 Page 4 PARK DEPARTMENT — MOWER (EQ -104) 2016 Toro Groundsmaster 4000-D $ 61,501.95 Trade-in 2000 Toro Groundsmaster 580-D -$ 7,500.00 Total Expenditure $ 54,001.95 Budget Amount $ 66,000.00 PARK DEPARTMENT — SKID LOADER TRAILER (EQ -143) 2016 Felling FT -12 Trailer (plus tax, license, registration) $ 5,995.00 Trade-in 1998 Felling Trailer -$ 1,250.00 Total Expenditure $ 4,745.00 Budget Amount $ 6,000.00 COMMUNITY DEVELOPMENT —PICKUP (EQ -015) 2016 GMC 1500 4x4 Ext. Cab (plus tax, license, registration) $ 23,660.17 Estimated Auction Value of Vehicle #601 -$ 1,500.00 Total Expenditure $ 22,160.17 Budget Amount $ 30,000.00 CSO — PICKUP (EQ -083) 2016 GMC 4x4 Ext. Cab Pickup (plus tax, license, registration) $ 26,130.77 Graphics $ 760.00 Spotlight $ 224.84 Estimated Auction Value of Vehicle #704 -$ 6,000.00 Total Expenditure $ 21,115.61 Budget Amount $ 30,000.00 EXPENDITURE SUMMARY The total expenditure proposed for vehicles this year is $228,856.26 including the utility vehicle that was totaled by the insurance company due to an accident. The total vehicles tax (6.5%), license and registration will be about $17,600. The amount budgeted was $262,000. Therefore purchase of City vehicles is $15,543.74 under the budgeted amount. SUMMARY The City's equipment continues to exceed the normal replacement age of 10 years. It is important to replace vehicles and equipment at this time that is over 10 years old. Attachments: Resolution CIP Sheets gAeng\public\pw016 vehicles and equipment\bkgd 031416 cip purchases.doc CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: March 14, 2016 RESOLUTION NO: MOTION BY: SECONDED BY: 2016 -XX A RESOLUTION FOR APPROVING 2016 VEHICLES AND EQUIPMENT PURCHASES PWO16III WHEREAS, annually, the City considers replacement of vehicles and equipment that have reached their average life expectancy and are showing signs of needing major maintenance; and WHEREAS, it has been the City's practice to replace vehicles and equipment that is over 10 years old and before major repairs are required; and WHEREAS, these purchases are included in the 2016 CIP. The attached report explains the total amount of each item bid with possible additional costs for taxes and licenses on the vehicle or equipment. NOW, THEREFORE, BE IT RESOLVED that the Chanhassen City Council hereby approves the 2016 purchases. Passed and adopted by the Chanhassen City Council this 14th day of March, 2016. ATTEST: Todd Gerhardt, City Manager Denny Laufenburger, Mayor YES NO ABSENT Capital Improvement Program 2016 thru 2020 City of Chanhassen, MN Project # EQ -029 Project Name Light Duty Trucks: Public Works Account #1 400-4120-4704 Account #2 Account#3 Account#4 Department Major Equipment Contact Paul Oehme Type Vehicles Useful Life Unassigned Category Street Equipment Priority n/a Description 771 Total Project Cost: $320,000 'rovides for scheduled replacement of light duty trucks in the street and garage departments. Replacement units are generally purchased early in he year in order to accommodate the time frames established by Hennepin County and the State of MN Cooperative Purchasing Program. L6-. # 112 2002 Chevrolet 3/4 ton with plow 17 - #151 1995 Chevrolet 1/2 ton pickup 18 - #101 2004 Chevrolet 3/4 ton pickup 20 - # 130 2007 Chevrolet 3/4 ton pickup 20 - #155 2002 Chevrolet 1/2 ton pickup susuncianon These vehicles are used for a variety of services throughout the community. The average replacement age is 14 years. These purchases are consistent with the Vehicle Replacement Program, Prior Expenditures 2016 2017 2018 2019 2020 Total 1095000 Vehicles 42,000 28,000 30,000 111,000 211,000 Total Total 42,000 28,000 30,000 111,000 211,000 ' Prior Funding Sources 2016 2017 2018 2019 2020 Total 109,000 Capital Replacement 42,000 28,000 30,000 111,000 211,000 Equipment Fund ' Total Total 42,000 28,000 30,000 111,000 211,000 1 Budget Impact/Other These purchases will include a limited warranty and will reduce annual maintenance and repair costs as compared to the vehicles replaced. 1 24 w .7 Capital Improvement Program 2016 thru 2020 City of Chanhassen, MN Project # EQ -062 Project Name Light Duty Trucks: Utilities Account#1 700-7025-4704 Account#3 400-00004704 Account#2 701-70254704 Account#4 Description This allows for replacement of existing vehicles in the Water and Sewer department. 2016 - #315 1995 Chevrolet 1/2 ton pickup #320 2003 Chevrolet 3/4 ton pickup 2017 - #3212004 Chevrolet 3/4 ton pickup 2019 - #304 2005 Chevrolet 3/4 ton pickup 2020 - #305 2006 Chevrolet 3/4 ton pickup Justification This replaces pickups in accordance with the vehicle replacement plan, Department Major Equipment Contact Paul Oehme Type Vehicles Useful Life Unassigned Category Utilities Priority n/a Total Project Cost: $454,000 Prior Expenditures 2016 2017 2018 2019 2020 Total F--2-86—,00-01 Vehicles 58,000 41,000 36,000 33,000 168,000 Total Total 58,000 41,000 36,000 33,000 168,000 Prior Funding Sources 2016 2017 2018 2019 2020 Total 286,000 Capital Replacement 10,000 10,000 Equipment Fund Total Sewer Utility Fund 24,000 20,500 18,000 16,500 79,000 Water Utility Fund 24,000 20,500 18,000 16,500 79,000 Total 58,000 41,000 36,000 33,000 168,000 29 Capital Improvement Program 2016 thru 2020 City of Chanhassen, MN Project # EQ -100 Project Name Light Duty Trucks - Parks Department Major Equipment Contact Paul Oehme Type Vehicles Useful Life s for Expenditures Category Park Account #1 400-4120-4704 Account #3 Priority n/a Account #2 Account #4 Description Total Project Cost: $240,000 Provides for scheduled replacement of light duty trucks in the parks department. These vehicles are purchased using the State of Minnesota purchasing contract. Justification 2016 - #404 1991 Ford F-250 2018 - 4412 1995 Chevrolet C-20 2019 - #4012004 Chevrolet 4x4 with plow 2020 - #402 2004 Chevrolet 4x4 34 s for Expenditures 2016 2017 201$ 2019 2020 Total 105,004 Vehicles 30,000, 30,000 45,000 30,000 135,000 Total Total 30,M 30,000 45,000 30,000 135,000 Prior Funding Sources 2016 2017 2018 2019 2020 Total F-71-65-,6-656-1 Capital Replacement 30,000 30,000 45,000 30,000 135,000 Equipment Fund Total Total 30,000 30,000 45,000 30,000 135,000 Budget Impact/Other 34 Capital Improvement Program 2016 thru 2020 City of Chanhassen, MN Project # EQ -104 Project Name Mower Replacement - Park Account #1 400-00004705 Account #3 Account #2 Account #4 Description 2016 - 2003 Toro 4000D (#454) 2017 - 2000 Toro 580D (4453) 2018 - 2004 Toro 580D (#455) Department Major Equipment Contact Todd Hoffman Type Equipment Useful Life Category Park Priority n/a Total Project Cost: $426,000 The City had 4 high -production grounds mowers. Each machine is used daily during the growing season and needs to be in good working condition. In 2012, the City replaced two 325D mowers with one large Toro 4000 mower. It is anticipated that staff will be able to mow just as much with one large mower. Prior Expenditures f --T52—,0001 Equipment Total 2016 2017 2018 2019 2020 Total 66,000 1 104,000 104,000 274,000 Total 66,000 104,000 104,000 274,000 Prior Funding Sources 2016 2017 2018 2019 2020 Total 155,000 Capital Replacement 66,000 104,000 104,000 274,000 Total Equipment Fund Total 66,000 104,000 104,000 274,000 Budget Impact/Other 35 Capital Improvement Program 2016 thru 2020 City of Chanhassen, MN Project # EQ -143 Project Name Trailer Replacement - Parks Account #1 400-0000-4705 Account #2 Description chis trailer is used to haul bobcat and equipment. 1998 Felling Trailer Department Major Equipment Contact Todd Hoffman Type Equipment Useful Life Category Park Account #3 Priority n/a Account #4 Total Project Cost: $6,000 Justification L This trailer is very rusty and will need brakes by next spring. If the trailer is not replaced, the brake system will have to be replaced and the trailer will still be very rusty. Expenditures 2016 2017 2018 2019 2020 Total Equipment 6,000 6,000 Total 6,000 6,000 Funding Sources 2016 2017 2018 2019 2020 Total Capital Replacement 6,000 6,000 Equipment Fund Total 6,000 6,000 Budget Impact/Other 47 w Capital Improvement Program 2016 rhru 2020 City of Chanhassen, MN Project # EQ -015 Project Name Light Duty Trucks: Community Dev. Department Major Equipment Contact Paul Oehme Type Vehicles Useful Life Unassigned Category Community Development Account #1 400-41074704 Account 113 Priority n/a Account #2 Account #4 Description Total Project Cost: 5203,000 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. 2016 - #610 2004 Dodge Dakota ✓ 2017 - #604 2002 Ford Ranger Pickup 2018 - #6012005 Dodge Dakota Justification These vehicles are used to provide building inspection services throughout the community. The average replacement age is over 13 years. Prior Expenditures 2016 2017 2018 2019 2020 Total 113,00 Vehicles 30,000✓ 30,000 30,000 90,000 Total Total 30,000 30,000 30,000 90,000 Prior Funding Sources 2016 2017 2018 2019 2020 Total F-75-,6-6651 Capital Replacement 30,000 30,000 30,000 90,000 Total Equipment Fund Total 30,000 30,000 30,000 90,000 purchases will include a limited warranty and will reduce the annual maintenance and repair costs as compared to the vehicles replaced. 21 K Capital Improvement Program 2015 thrit 2019 City of Chanhassen, MN Project # EQ -083 Project Name CSO Truck Department Major Equipment Contact Paul Oehme Type Vehicles Useful Life Category Administration Account #1 400-4129-4704 Account #3 Priority n/a Account#2 Account#4 Description I Total Project Cost: $60,000 This allows for replacement of an existing CSO truck. This truck will have approximately 180,000 miles at the time of trade in. 2015 - #704 2010 Chev Colorado 4x4 Quad Cab Justification Fhis replaces a vehicle in accordance with the vehicle replacement plan. Prior Expenditures 30,000 Vehicles Total Prior Funding Sources 30,000 Capital Replacement Tota 1 Equipment Fund Impact/Other 2015 2016 2017 2018 2019 Total 30,000 — 30,000 Total 30,000 30,000 2015 2016 2017 2018 2019 Total 30,000 30,000 Total 30,000 30,000