04-22-2002 CC - Laserfiche WebLink

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Item No. 7C Type of Business: CA WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Greg Lee, Director of Public Works Item Title/Subject: Resolution No. 5750 Approving the Purchase of a Replacement Utility Truck for the Public Works Department Meeting Date: April 22, 2002 Background: On March 25, 2002, a Public Works employee was involved in an accident at the intersection of Edgewood Drive and County Road 10. Attached is a copy of the accident report. The City vehicle involved in the accident was extensively damaged. The City’s insurance claims adjustor, League of Minnesota Cities (LMC), deemed that the cost to repair the damage was greater than the value of the vehicle. The vehicle was therefore “totaled.” This vehicle was a 2000 Ford F- 250 Extended Cab Truck with a utility box. Discussion: The City carries a $10,000 deductible on this vehicle. This vehicle was originally purchased in the fall of 1999 utilizing funds derived from the Water Infrastructure and Equipment Maintenance Department of the Enterprise Fund. Funds to replace this vehicle will be derived from the Contingency Account of the Water Infrastructure and Equipment Maintenance Department of the Enterprise Fund (700-4823-9100). There is currently $15,000 in available funds in this account. When this truck was originally purchased, it was delivered equipped with a standard factory box. Since the truck was used for utility purposes, the factory box was removed and a more functional fiberglass utility box was purchased and installed. The appraiser for the City’s insurance contacted the City with the following quotes and options: 1. Sell the truck, with the utility box, for $20,500 with a $10,000 deductible. 2. Remove the utility box from the truck, replace it with a factory box (it has been stored in cold storage), and sell the truck for $20,000 with a $10,000 deductible.