To: Honorable Mayor and Members of Town Council
From: Paul Colell, Fleet Services Manager
Title
Resolution Authorizing the Acquisition of Two International Dump Trucks with Plow Equipment from McCandless Truck Center LLC
Body
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Executive Summary
As Part of the Town’s Fleet Replacement Program, two of the Public Works Street Division’s plow trucks are scheduled for replacement. Both trucks are 2008 models and have met all the requirements for replacement outlined in the Town’s Vehicle Replacement Policy and have been approved through the 2019 budget process. Fleet Services worked with the Street Division to develop specifications and quote through the State of Colorado bid process. The replacement fund has sufficient funds to purchase these vehicles, and since the cost is over $250,000 we are seeking Council approval to move forward with the purchase.
History of Past Town Council, Boards & Commissions, or Other Discussions
The Council approved the 2019 budget on September 18, Ordinance 2018-029 which included these items. Council has also previously approved such purchases of large vehicles over $250,000.
Public Works Commission is scheduled to review this item on February 4, 2019. They will provide a formal recommendation to Town Council, which staff will provide during the presentation at the Town Council Meeting.
Discussion
The Public Works Department contributes money on an annual basis to the fleet replacement fund so that we are able to replace vehicles and equipment without having to incur debt. The entire Town fleet is on a standardized replacement schedule, and these two dump trucks are due for replacement in 2019. After replacing these vehicles, they will be auctioned in a public auction and the funds received from that will be placed back into the replacement fund to offset future replacement costs.
The Fleet Services Division worked with both Finance and Streets Division to ensure that all replacement requirements were met. A specification and quote was obtained from McCandless International for the two dump trucks including all the snow removal equipment using the State of Colorado annual bid open bid process, and the Department is ready to move forward with this purchase.
The Streets Division has been using International dump trucks since 1997 and has been very reliable and consistently the best truck at the lowest possible cost using lifecycle cost analysis.
While already conceptually approved in the Fleet replacement budget for 2019, the Department is seeking formal Council approval as the expenditure exceeds the $250,000 signing limit of the Town Manager.
Budget Impact
The current budgeted replacement amount in the vehicle replacement fund is $207,282 for each truck fully equipped for a total of $414,564. Using the State of Colorado bid # 311001619 and the municipal discount provided by International, staff was able to get the final cost at $193,331 each. Which resulted in a total savings of $27,902 under planned expenditure amount.
Staff Recommendation
Based on the opportunity for the Town to save $27,902 from our planned expenditure amount staff recommends approval of the expenditure of funds to purchase these dump trucks for a total cost of $386,662.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution