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Purchase of Replacement Dump Truck 3216THE CITY OF DUB E ~,-~-~ MEMORANDUM February 28, 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Purchase of Replacement Dump Truck Public Works Director Don Vogt is recommending approval of the purchase of a new 54,000 gross vehicle weight dump truck from the only bidder on the truck chassis, Hawkeye Truck, in the amount of $57,900, and the low bidder for spreader/dump box and plow wing attachment, Henderson Truck Equipment, in the amount of $50,531. I concur with the recommendation and respectfully request Mayor and City Council approval. ~~~ ~~~~ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Don Vogt, Public Works Director THE CITY OF DuB E MEMORANDUM ~-~~ February 26, 2007 TO: Michael C. Van Milligen, City Manager FROM: Don Vogt, Public Works Director ~~~" ~/ SUBJECT: Purchase of Replacement Dump Truck INTRODUCTION The purposes of this memorandum are to provide information and request your approval of the purchase of a new 54,000 GVW dump truck and associated equipment to replace #3216. BACKGROUND The Public Works Department's approved FY07 budget contains an appropriation of $102,000 for the purchase of a replacement for #3216, a large dump truck used during the winter months to spread deicer and plow snow, and during the warm weather months to haul asphalt for our street paving crew. Last July, Street and Sewer Maintenance Supervisor John Klostermann recommended that the City forego replacing one of its motor graders in FY07, as scheduled and budgeted, in order to free monies to allow the new #3216 to be upgraded for and equipped with a wing snow plow. John's recommendation was subsequently approved by then Budget Director Dawn Lang and you. The bidding process, however, had to be delayed due to the truck manufacturers struggling with their switch to more fuel efficient, lower-emission diesel engines. Bid proposals were recently solicited, and a tabulation of the bid proposals received is attached. DISCUSSION The attached memorandum from Street and Sewer Maintenance Supervisor John Klostermann recommends that the lowest bids, from Hawkeye Truck and Henderson Equipment, be accepted. He also recommends that the current #3216 be sold to the Dubuque Metropolitan Area Solid Waste Agency, which budgeted sufficient monies for FY07 for exactly this purpose. The Agency's purchase price would equal the trade-in allowance offered by Hawkeye Truck. ACTION STEP I agree with John's recommendations and request your approval of same. If you do concur with our recommendations, (request that the truck and equipment purchases be approved by resolution by the City Council at its March 5th meeting. Attachments THE CITY OF DuB E MEMORANDUM ~-~~ February 16, 2007 TO: Don Vogt, Public Works Director FROM: John Klostermann, Street/Sewer Maintenance Supervisor ~~L SUBJECT: Truck Bids -Replacement Unit 3216 In this memorandum I'll review the truck bids we received on February 14, 2007 and recommend a course of action concerning the purchase of this truck. The FY 2007 approved street maintenance budget (25054400) provides funding for one 46,000 GVW dump truck ($87,000). The snow and ice control budget (25054420) also provides funds ($15,000) for the replacement of one material spreader. In July of 2006 we requested and received permission to upgrade this unit to a 54,000 GVW chassis and equip this with a combination material spreader dump box with a wing plow attachment. I have attached a copy of this approved request for you review. Bid requests were sent out for the purchase of one 54,000 GVW truck chassis, one 14'combination material spreader/dump box with a wing plow attachment. The truck chassis bid specifications were mailed to the two local truck dealerships. We received only one bid on the chassis. That bid was from Hawkeye Truck for a delivery price of $71,900. They also allowed us $14,000 trade in for our current unit (3216) making the net cost $57,900. Truck Country informed us during the bidding process that they could not provide a bid price on the requested chassis because they will not receive new pricing on their units until May of 2007. We did received three prices for the combination spreader/dump box and plow wing attachment. The lowest price received for this unit was from Henderson Truck Equipment for the net price of $50,531. The other two prices received were from Monroe Truck for $51,861 and Tri -State Truck for $52,591. Using the lowest price received for the net cost of the chassis and the lowest price received for the combination spreader/ dump box with wing plow attachment, the total net unit cost of the complete new unit is $108,431. A complete break down of the bids received is attached for your review. It is my recommendation to purchase the low bid chassis unit from Hawkeye Truck and the low bid combination spreader/dump box and wing plow attachment from Henderson Truck Equipment. Landfill Supervisor Tom Driscoll has inspected our trade in unit and would like to have our trade-in transferred to the landfill activity. It is my recommendation that instead of trading in our current unit (3216), we transfer the dump truck and material spreader unit to the landfill activity. In my July memorandum I recommended that we would funded the new unit in the following way: 25054400 - 71 314 (Truck Replacement) $87,000 25054400 - 71318 (Heavy Equip. Replacement) $ 6,431 25054420 - 71418 (Material Spreader) 15 000 Sub total: $108,431 I am also recommending that $14,000 be transferred from the landfill activity budget to cover the trade-in allowance of our old unit: 94054200 - 71315 (Truck Replacement) 14 000 Total Unit Cost: $122,431 Since we only received one bid on the chassis, I have attached for your review the state bid on a similar unit. If we delete the state bid items that we did not include in our specifications, the state bid unit cost is very close to our bid price. It is critical that we move forward with this bid award in order to have this completed unit delivered and ready for service before our snow and ice control season. If you have any questions concerning this recommendation, please contact me. 56,000 GVW TANDEM AXLE TRUCK CHASSIS BID SUMMARY ,, VENDOR HAWKEYE TRUCK TRUCK COUNTRY YEAR 2008 No Bid MAKE International MODEL 7400 ENGINE 10 Liter 260 Horsepower MEETS SPECIFICATIONS? Yes WARRANTY 24 Month/24,000 Miles 5 Year/100,000 Mile Powertrain DELIVERY DATE 8 - 10 Weeks DELIVERY PRICE $ 71,900.00 GOVERNMENT DISCOUNT $ 0.00 LESS TRADE-IN $ 14,000.00 NET COST TO THE CITY $ 57,900.00 BID SUMMARY COMBINATION/SPREADER BODY/DUMP BOX VENDOR HENDERSON TRUCK MONROE TRUCK TRI-STATE TRUCK YEAR 2007 2007 2007 MAKE Henderson Force America Monroe HiWay MODEL Munibody RDS XT3 MEETS SPECS? WARRANTY DELIVERY DATE Yes Hoist Cylinder/24 Months Balance of Unit/12 Months 90 - 120 Days Yes 12 Months 60 -120 Days Yes 12 Months 30 - 45 Days DELIVERY PRICE $50,531.00 $51,861.00 $52,591.00 GOVT DISCOUNT 0.00 0.00 0.00 LESS TRADE-IN 0.00 0.00 0.00 NET COST TO THE CITY $50,531.00 $51,861.00 $52,591.00 RESOLUTION NO. 122-07 RESOLUTION APPROVING THE PURCHASE OF A DUMP TRUCK TO REPLACE #3216 Whereas, the City Manager recommends the purchase of a dump truck and associated equipment, from Hawkeye Truck and Henderson Equipment respectively, for a total purchase price of $122,431.00, to replace #3216; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The purchase of a dump truck from Hawkeye Truck for a purchase price of $71,900.00 is hereby approved. Section 2. The purchase of a combination dump/spreader box and a wing snow plow from Henderson Equipment for a purchase price of $50,531.00 is hereby approved. Passed, approved and adopted this 5th day of March, 2007. Roy D.Buol, Mayor Attest: Jeanne F. Schneider City Clerk