09-07-82 CCM - Laserfiche WebLink

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CITY COUNCIL MEETING, SEPTEMBER 7, 1982 -5- 6. DAVE WISDORF - MAINTENANCE SUPERVISOR: A. .Dump Truck Bids Wisdorf informed the Council of the condition of the dump truck and grader. Both pieces of equipment are old and reaching their stress points. Truck trade-in value is $2,000-$3,000, therefore, it was not written into the specs as a trade-in. Should hold this value for several years and would be better used as a back-up vehicle.. Plow for the dump truck has been repaired several times and it is questionable if it will last another winter season. Wisdorf recommended against..purchasincr nav- equipment fo,r the truck because -of the age of the truck and equipment costs. Leasing was not:a viable solution as the proposed vehicle is made to order to meet the City's needs .`.lease equipment would not have the,.hecessary equipment, would be more expensive to customize or would be old used equipment. —Morgan - questioned the additional cost, insurance, maintenance, storage, of keeping the old unit. --Wisdorf - truck_ would be stored outside. Additional costs would be minimal as it would be kept in operating condition but would not be used a great deal. Will not depreciate much more, can sell it later if necessary. --Mottaz - favors purchasing the truck and repairing the grader. B. Grader Bids - 1,71s orf reviewed the condition of the grader. and the Motor Grade Options,:as outlined in the Administratorl's memo of August 12, 1982. Trade-in on_a new machine is $5-6 000.' Citv has spent - $6,200 over the past three years on repairs. --Mottaz - recommended getting an estimate to over -haul the grader; Wisdorf - because of tle_age -of the -machine,, parts are about three -times more expensive would not increase "machine-: value. Another alternative is a.used grader - these are a minimum of 7 yrs. old. (newer than 7 years usually have major manufacture problems);, and after 7 years warrantees/guarantees are off._ Motta.z - concerned about spending $100,000+ when there is a possibility this one might last another 2-3 years; Tor.st that could happen is that the City would have to contract for work this winter should the present machine not operate. M/S/ Eder/Morgan denying authorization for grader bids. --Wisdorf - Draft bid provided a buy back clause. Ziegler provided that within 8500/hrs or 7 yrs. they will buy the machine back for 90% of the value. City may determine it doesn't need a grader in 7 years. --Eder - Economics have chanaed since this wasputin the C'IP_- realistically cannot afford this at this time. --Eraser - based on the alternatives presented, question is what are' the costa with vs without --this purchase - can we afford not to buy a grader. --Wisdorf - Leasing costs: Zeigler $5,000 per mo. Carlson Equipment $1800/mo, for a smaller unit. Looking at a high cost should the grader cease to function - also looking at a major problem should the winter of 1981 be repeated, making a gamble. Recommends the equipment be replaced, --Novak - rather, take a chance on it lasting another season, even if renting becomes necessary - reconsider next year. Motion carried 4-1. Fraser opposed.