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07. PW Equipment Purchases Staff Report Date of Meeting: 2/7/2024 For: Mayor and City Council From: Charles Fischer – Director of Public Works Subject: Staff Report Public Works has been acquiring quotes for the purchase of a new track/skid loader and Class 5 dump truck to replace existing equipment which have reached the end of their respective replacement schedules. Due to continuous fluctuations in the price of equipment each piece of equipment to be replaced will be below or above anticipated budgeted amounts. The replacement track/skid loader was estimated to cost $90,000 and after review of the quotes received will fall well below the budgeted amount. The current 2012 New Holland 225 skid steer has an estimated trade value between $15,000 and $20,000. There may be potential to auction the skid steer and receive more of a return but taking that risk could lead to less of a return and cost the City more for the total purchase price of the track/skid loader. Public Works is recommending trading the current equipment at the time the new machine arrives. A favorable quote with trade for a 2024 New Holland C337 has been chosen by Public Works to recommend for purchase. The total cost for the purchase of the New Holland C337 is $60,367.64 factoring in the trade value of $16,000. The total cost will save the 406 CIP fund $29,632.36. The replacement for the Class 5 2013 Ford F550 was estimated at a cost of $84,356 and after reviewing quotes received for the cab/chassis and outfitted with a dump body and tool box the total cost will be above the budgeted amount. The cost is above the budgeted amount without factoring in a trade or sale value of the current F550. The total cost of the truck and outfitting will be $96,526.86 which is $12,170.86 over the budgeted amount. Public Works is confident that the auction sale of the current truck will be close to or above the overage of $12,170.86, but if the auction price is lower, the cost savings of the track/skid loader purchase will be able to make up the amount of difference from the budgeted amount of the 2024 F550 purchase. The option to place a reserve price on the truck is an available as well, but on occasion reserves are not met in the auction and will delay the sale of the truck. Public Works is recommending to purchase the 2024 New Holland C337 and trade in the current 2012 New Holland 225 at time of delivery. Public Works is also recommending to purchase the outfitted 2024 Ford F550 at the quoted price and to place the 2013 F550 on auction when the new truck arrives. The intention of this report was for updating Council on the current state of purchases this year. Public Works does however face further delays in delivery and proposes to Council to approve the purchase of the budgeted vehicle replacements. If you have any questions prior to the meeting please contact my office or email me individually. Attached are specs and quote prices for track/skid loader and truck options. Current Equipment 2012 New Holland 225 2013 Ford F550 Track/skid steer Options Truck Options *Truck images are for reference. Not exact match to quoted truck.