10.f Replacement of 2002 Sterling Dump Truck with plow package
Staff Report
Date of Meeting: February 21, 2017
To: City Council
From: Adam Hawkinson, Director of Public Works
Re: PW-010, 2002 Sterling Dump Truck/Plow Replacement (202 -02)
Background:
The Council approved the 2017 CIP budget. In the budget was $200,000.00 to replace the 2002 Sterling
dump truck with a new truck. Replacement is necessary due to future costly expenses that would likely
occur due to years of use, we don’t have in-house mechanic to keep up with the minor repairs that are
occurring more frequently, the current truck will continue to depreciate value, and down time will impact
the services we provide to the customers.
Issue
Requesting a recommendation from City Council to approve the purchase of 2018 single axle dump
truck with a snow plow package and accessories.
Proposal Details:
We have received three quotes through the MN State contract for truck chassis: I-State / Freightliner -
$98,477.00, Nuss Truck & Equipment / Mack - $107,593.00 and Boyer / Western Star at $100,840. I
secured another bid from Mack through the National Joint Purchasing Alliance from Grande Truck
Center which came in at $118.018.00.
Though the Freightliner saves us money on the front end, other cities and counties such as the City of
Minnetonka and Washington Co. are committed to Mack and Western Star because of their reliability
and longevity. The staff is recommending the Mack truck chassis since the City of Scandia has 2 other
Mack trucks in its fleet which would create a smooth transition to learn the operation of the new
vehicle. The reliability and longevity in the field is crucial to helping the cities CIP planning by extending
the replacement time frame and continuing to provide positive customer service.
There are four bids for the box and plow package. Tow Master: $ 96,686.00, J-Craft – TBEI: $96,143.00,
Aspen: $105,275.00 and Crysteel: $109,453.96. Prices for the addition of tanks on the truck for pre-
treating the salt have been calculated for comparison . Tow Master tank system: $2,470.00, J-Craft tank
system - $2,845.00. The two highest bids for truck equipment were not factored into the options table.
Pre-treatment of salt at the spinner reduces salt use, helps the salt activate faster, and allows salt to
activate at a lower temperature. There would be additional cost for staff to drive to Washington Co. to
pick up brine. Brine cost is very minimal and Washington Co. is willing to work with us to minimize the
cost.
Fiscal Impact:
Funds used are allocated through the CIP Equipment Replacement Fund. The truck purchase will not
affect or incur a debt from the residents of Scandia. The City allocated $200,000 to pay for the new
truck. Trade-in values are as follows: Nuss - $28,000.00, Freightliner - $32,000.00 and Western Star -
$41,000.00. If we trade in the vehicle we would be taxed on the net value of the purchase price for the
chassis which would range $70,477.00 (Freightliner) to $79,593.00 (Mack) and $59,840.00 (W. Star).
Taxes and plates would range from about $4,000 to $5,300 respectively. Without the trade tabs and
plates are $6,444.51 and $7,037.05 respectively.
Options:
#1 – Approve purchase of 2018 MACK truck with the Towmaster package
#2 - Approve purchase of 2018 MACK truck with the J-Craft package.
#3 – Approve purchase of 2018 Freightliner truck with the Towmaster package
#4 - Approve purchase of 2018 Freightliner with the J-Craft package
#5 – Approve purchase of 2018 Western Star – Towmaster package
#6 - Approve purchase of 2018 Western Star with the J-Craft Package
# - Non-approval
Recommendation:
Option #2 is the recommendation as it allows Scandia to have 3 dependable trucks in their fleet that
will allow us to continue to provide quality customer services. Option #6 is their second choice.
Attachment:
Quote from Nuss Truck & Equipment
Quote from Towmaster Inc.
Quote from I State
Quote from J-Craft
Quote from Crysteel
Quote from Grande Truck Center
Quote from Boyer Ford
Quote from Aspen Equipment
Truck Purchase Combinations Company PKG.Total W/ tanks W/ O Tanks Total W/ trade
Option #1 Mack Chasis $107593 + plates = $114,630.05 Towmaster Pkg.$99,156.00 $213,786.05 $211,316.05 $183,966.05
Option #2 Mack Chasis $107593 + plates = $114,630.05 J -Craft Pkg.$96,143.00 $210,773.05 $207,928.05 $180,953.05
Option #3 Freightliner $98,477 + plates = $104,921.50 Towmaster Pkg.$99,156.00 $204,077.50 $201,607.50 $169,954.01
Option #4 Freightliner $98,477 + plates = $104,921.50 J -Craft Pkg.$96,143.00 $201,064.50 $198,219.50 $166,984.50
Option #5 Western Star $100,840 + plates = $107,438.10 Towmaster Pkg.$99,156.00 $206,594.10 $204,124.10 $162,929.10
Option #6 Western Star $100,840 + plates = $107,438.10 J -Craft Pkg.$96,143.00 $203,581.10 $200,736.10 $159,916.10