CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 18-206, 2019 Peterbilt Model 348 Cab and Chassis, to J X Enterprises, Inc., for an amount not to exceed $191,450.54
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Department of Public Works (DPW) Unit 296, a tandem dump truck with plow, was reviewed by the Fleet Economic Committee and Fleet Service Project Manager and approved for replacement in the 2018 budget. Vehicles and equipment are evaluated for replacement based on four criteria: age, usage, condition and repair costs. A vehicle must receive a score of 23.0 or greater to be recommended for replacement. The vehicle exceeds the minimum score as shown in the table below.
|
Unit # |
Year |
Amortized Life Cycle |
Replacement Age |
Minimum Criteria |
Scored Criteria |
Hour Guidelines |
Usage Hours |
Repair Costs |
|
296 |
2005 |
10 years |
14.2 years |
23.0 |
35.14 |
6,000 |
6,139 |
$96,301.68 |
DISCUSSION:
The Department of Public Works - Operations Division recommends the purchase of one 2019 Peterbilt Model 348 cab and chassis. The new Peterbilt truck will replace Unit 296, a 2005 Peterbilt 7400. The replacement Peterbilt will be used in various capacities throughout the year, including leaf and brush pick-up, salt applications and snow removal.
The new Peterbilt Model 348 will maintain conformity in the City’s fleet, which minimizes operational, inventory, service, repair, safety and training costs. The Peterbilt Model 348 is available on the Sourcewell (Formerly National Joint Powers Alliance - NJPA) Cooperative, an approved cooperative, through JX Enterprises, Inc., Contract No. 081716-PMC.
Using the City’s specifications, JX Enterprises, Inc. has quoted the 2019 Peterbilt Model 348 cab and chassis in the amount of $191,450.54. It will be delivered in approximately seven months.
|
Original Cost |
Less NJPA Discount |
Less Trade-In |
Net Price |
|
$255,028 |
$50,077.46 |
$13,500 |
$191,450.54 |
The current Unit 296, a 2005 Peterbilt 7400, will be traded-in to JX Peterbilt for $13,500 to offset the purchase cost of the new unit.
FISCAL IMPACT:
CIP #: N/A
The 2019 Peterbilt Model 348 Cab and Chassis is expensed to the vehicles and equipment account below. DPW had a total budget for CY18 Vehicle Replacements for $1,035,000, which included $185,000 for the replacement of Unit 296 in 2018. This is the final vehicle purchase for CY18 (DPW) and the Departments total will be underbudget by over $2,000.
|
Account Number |
Fund Description |
Total Budget Amount |
|
31102200-551505 |
Capital Projects Fund |
$1,035,000 |