Item Coversheet

*4.C.1.


Shakopee City Council
July 7, 2020


FROM:Bill Egan, Public Works Superintendent
TO:Mayor and Council Members
Subject:
Purchase a sign truck for the Public Works Department (Streets); and declare the existing sign truck as surplus equipment.
Policy/Action Requested:
Approve the purchase of a 2020 Ford F-550 from Midway Ford in the amount of $45,165.80 and equipment and setup for the sign truck from ABM Equipment and Supply in the amount of $133,269.00; and declare the existing sign truck as surplus equipment.
Recommendation:
Authorize the purchase.
Discussion:

The replacement of sign truck and equipment (Unit Nos. sk1101) is included in the 2020 Capital Improvement Plan (see attached CIP Sheet EQUIP-20-424). The vehicle and equipment are being purchased under State of Minnesota Contract Nos. 170310 (Midway Ford) Chassis cab,174518 (ABM Equipment) air compressor, and 125690 (ABM Equipment) truck crane.  The quotations from Midway Ford and ABM Equipment are attached and are consistent with the state contract pricing. Portions of the box are not covered under contract but a second quote was obtained, validating the costs. The cost of the 2020 F-550 is $45,165.80 plus an additional $133,269.00 for box and equipment purchase and install, totaling $178,434.80.

 

As part of this purchase two safety features are being added, an aluminum box with roll-up doors and a mid-mount crane. Both items will improve operator safety by reducing exposure to traffic areas. The existing 2005 sign truck has 40k miles and will be sold through an auction. 

Budget Impact:

The budget for the sign truck per CIP is $180,000. The total purchase amount for the sign truck and equipment is $178,434.80, which is $1,565.20 (0.87 percent) under budget. This purchase is funded under the Equipment Internal Service Fund. 

 

Revenue from the sale of surplus equipment will be deposited into the Equipment Internal Service Fund.

 

 

ATTACHMENTS:
Description
CIP Sheet
Midway Ford Quote
ABM Equipment Quote