Memorandum

City of Lawrence

Public Works

TO:	Charles F. Soules, P.E., Public Works Director
FROM: CC:	Robert Aaron, Public Works Fleet Manager Mike Perkins, Public Works Street Division Manager Mark Thiel, Assistant Public Works Director
DATE:	11/16/2015
RE:	Tandem Axle Dump/Plow Truck replacement

Background

The 2016 approved budget identified the replacement of four (4) dump trucks in the Street / Storm Water Division budgets. The units are described and listed below.

326 Storm Water Division, Model year2000 Sterling LT7501 Tandem Axel dump truck

327 Storm Water Division, Model year 2000 Sterling LT7501 Tandem Axel dump truck

330 Street Division, Model year 2002 International 7400 Single Axel dump truck

334 Street Division, Model year 2004 International 7400 Single Axel dump truck

These units have been identified for replacement in an effort to right size and increase efficiencies in hauling material and snow removal. The replacement units will provide for efficient snow removal operations in winter events and provide larger capacities of material handling for street maintenance operations. The repair costs for these existing vehicles range from 101% to 271% of the original purchase price. With increasing downtime, reliability has become an issue that delays routine projects and could result in 20 percent or more of the snow and ice fleet down at any one time.

Equipment Description

Public Works Streets Division has identified the need to replace aging units in its dump truck fleet. These units are vital units that provide a role in all aspects of street maintenance. Dump trucks provide hauling of asphalt, aggregate, rip-rap, storm clean up material, construction debris, and serve a vital role in snow operations. The new vehicles will be equipped with central and feedback hydraulic systems, dump beds, material spreaders, and front and wing plows. The Street / Storm Water Division can utilize the current Kansas Department of Transportation contract pricing on four (4) replacement units. This contract has shown to be a very competitive cooperative purchasing option base on purchasing history. The chart below details the replacement costs, trade value, and the net cost per vehicle.

Unit	Replacement Cost	Trade Value	Net Cost	Funding
326	$174,147.00	$15,000.00	$159,147.00	Storm Water
327	$174,147.00	$15,000.00	$159,147.00	Equipment Reserve
330	$174,147.00	$15,000.00	$159,147.00	Motor Fuel Tax
334	$174,147.00	$15,000.00	$159,147.00	Motor Fuel Tax
Total	$696,588.00	$60,000.00	$636,588.00

Funding

Funding was identified in the 2016 budget process and will utilize (Storm Water) 505-3-3910-6005 for one (1) unit, (Motor Fuel Tax) 214-3-3800-6005 for two (2) units, and (Equipment Reserve annual lease payments) 202-3-3000-6005 for one (1) unit. Street / Storm Water can utilize trades of $15,000 per unit to apply to the truck purchase. This will bring the price per truck to $159,147.00. This pricing includes spreader, plows, feedback hydraulics, and dump body. Purchase orders will not be issued until January of 2016. The vendor will hold pricing until that time.

The 2016 equipment reserve budget includes the first year of a five year annual lease payment for one of the units. Staff plans to issue an RFP for lease terms once the purchase order is issued in 2016 and will bring the terms to a future Commission meeting for the financing approval.

Staff Recommendation

Public Works Street and Central Maintenance Divisions recommend the purchase of four (4) dump trucks with spreader and plow combinations, utilizing the Kansas Department of Transportation contract EVT0001401, from Truck Center Companies of Wichita. Finance staff recommends adopting a resolution intending to finance the unit to be paid for from the equipment reserve fund.

Action

Waive bidding requirements and approve the purchase of four (4) dump trucks, plows and spreader combinations for $636,588.00. 2016 budgeted accounts: 1 - (Storm Water) 505-3-3910-6005, $159,147.00; 2 - (Motor Fuel Tax) 214-3-3800-6005, $318,294.00; 1- (Equipment Reserve) 202-3-3000-6005, $159,147.00.

Adopt Resolution No. 7146 in the amount of $159,147.00 for the purchase on (1) dump truck, including spreader, plows, feedback hydraulics, and dump body.