10-09-1996 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117 -1600 (612) 484 -2177 / FAX: (612) 484 -4538 MEMORANDUM TO: Mayor Fahey & Members of the City Council //�� //fl)FROM: Scott Tangen, Public Works Director lL °� // DATE: October 4, 1996 RE: Purchase of New Plow Truck MAYOR Michael I. Fahey COUNCIL Beverly Scalze Jim LaValle Steve Morel= Bob Pedersen ADMINISTRATOR Joel R. Hanson Since my memo on September 20, 1996, I have explored the options of contracting for snow plowing either with the County or privately. I have also explored the options of purchasing a new versus a used truck. I have met with Ramsey County regarding plowing on a contracted basis. The County will be unable to do this. They are only available on an emergency basis to back us up. Due to the State turning back roads to the County, they now have more roads to plow. Additionally, they do not have the personnel and equipment available to plow for our city in a timely manner. I also explored the option of contracting with some private companies. I was unable to find any that have the equipment and manpower needed to plow our streets in an efficient and timely manner. In comparing the purchase, maintenance, repair, depreciation, and operation of a new or used truck, I found that the per year costs are essentially the same when you consider a 20 year useful life. When considering the lost investment opportunity of the money that we would use to purchase a new truck, it became clear to me that a used truck is the best option. Given this option, I extended my search for a used truck to out state Minnesota and also to a portion of Wisconsin. I have since found and purchased a used plow truck that meets our specifications and needs. If you have any questions, please give me a call. ST:kv Page 29