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Item No. 7B <br />Type of Business: CA <br />WK: Work Session; PH: Public Hearing; <br />CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Greg Lee, Director of Public Works <br />Item Title/Subject: Resolution No. 5939 Approving the Purchase of a <br />Replacement Dump Truck <br /> <br />Meeting Date: February 10, 2003 <br /> <br />Background: <br />In 1988, the City purchased a Ford L-8000 Series Dump Truck. This Dump <br />Truck has been used to perform many routine Public Works duties such as snow <br />removal, ice control, hauling of material and debris, street maintenance activities <br />such as asphalt paving, and towing equipment trailers. <br /> <br />The City has a practice of replacing dump trucks on a fifteen-year cycle. Many, if <br />not most, municipalities and other government agencies have chosen shorter life <br />cycles for dump trucks, typically 10 to 12 years. Staff will be reviewing the <br />increased service and repair costs and the decreased trade-in value experienced <br />in the last three years to determine the most cost effective life cycle. <br /> <br />Given the age and increased maintenance necessary, this truck is no longer cost <br />effective and has therefore reached the end of its economically useful life cycle. <br />This dump truck was scheduled for replacement in 2003 and monies have been <br />allocated in the 2003 budget for its replacement. <br /> <br />Staff is recommending that the truck be traded in and replaced with a similar <br />truck with similar equipment and options. Ford no longer produces the 8000 <br />series truck; they have been replaced with Sterling brand trucks. These can be <br />purchased under state contract, foregoing the requirement of acquiring addition <br />bids. A 2003 Sterling brand dump truck can be purchased from Boyer Ford <br />under state contract for $53,427.00. Tax, license, and transfer fees would cost an <br />additional $3,509.26. <br /> <br />The existing 1988 truck is currently in a usable condition and retains a salvage <br />value due to the City’s extensive maintenance program. The trade-in amount <br />offered by Boyer Ford is $12,500.00. <br /> <br />In addition to the truck itself, additional equipment and options are necessary to <br />fully utilize truck. These include: a dump body, front plow, wing plow, snow <br />plowing light package, and controls. These options can also be purchased under <br />state contract, again foregoing the requirement of acquiring additional bids.