Title
RESOLUTION AUTHORIZING THE PURCHASE OF THREE (3) 2017 FREIGHTLINER CABS AND CHASSIS FROM I-STATE TRUCK IN THE AMOUNT OF $250,946.67
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to contract with I-State Truck Center for the purchase of three (3) Freightliner 108SD cabs and chassis in the amount of two hundred fifty thousand nine hundred forty-six dollars and sixty-seven cents ($250,946.67), payable from Capital Equipment Fund 250; Public Administration Dept. 015; Fiscal Year 2016; Project CE250-V1604 Street Maintenance Vehicles.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the purchase of three 2017 Freightliner cabs and chassis at a cost of $78,506 per unit. The units will be outfitted for snow removal and sanding operations.
A 2014-2015 Fleet study found that City vehicle maintenance costs are reduced when units of this type are traded in, repurposed, or auctioned upon reaching twelve (12) years of age. Unit 3352, purchased in 2001 for $117,470, has exceeded this recommended replacement age by three years. The unit has incurred $143,364.83 in maintenance costs to date. Unit 3426, purchased in 2003 for $119,199, has exceeded its recommended replacement age by one year. This unit has incurred $206,356.92 in maintenance costs to date. A third truck is being purchased to help meet the increasing need for snow removal during winter months and to increase efficiency in the summer months during road construction season. Additional information is attached as Exhibit A.
This purchase is against Minnesota State Contract Release T-647(5), contract number 77936.