5.1. ERMUSR 06-08-2010Elk River
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330.0430
UTILITIES COMMISSION MEETING
Phone: 763.441.2020
Fax: 763.441.8099
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. - Director of Operations
John Dietz, Chair Mazk Fuchs -Electric Superintendent
Jerry Gumphrey, Vice Chair
Dar 1 Thom son, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
June 8, 2010 5.1
SUBJECT:
Review and Consider Capital Equipment Purchases
BACKGROUND:
The 2010 budget contains a $55,000 line item to replace the 1996 F700 Ford dump truck and a
$38,000 line item to replace the 2002 Vactron.
DISCUSSION:
This year Midway Ford in Roseville has been awarded the MN State bid on Ford trucks. To
replace 1996 F700 Ford dump truck staff had budgeted for a F550 Ford dump truck with dump
bed and removable chipper box. This is a smaller size vehicle than the 1996 and will be far more
versatile. This vehicle will be used for wood chipping and hauling dirt/materials, but will also be
set up for snow plowing. After discussions with the City Shop, staff would purchase this vehicle
with the gas engine. The price for the new vehicle without the dump bed and chipper box is
$30,296. Midway will give $5,000 in trade for the 1996 F700 bringing the price down to
$25,296. (In previous years, Elk River Ford has won the State bid on Ford Trucks. To purchase
this same truck locally through Elk River Ford would cost approximately $2,700 more afrer
trade-in.) The cost of adding the dump bed and chipper box is approximately $15,000. The
purchasing details for this are still being finalized. There would also be some additional cost to
switch the mobile radio from the old vehicle to the new. This would result in an approximate
total of $41,000, $14,000 less than budgeted.
Vermeer has been awarded the State bid for the Vactron. The price for a Vactron is $55,495 and
Vermeer will give $15,000 in trade for the 2002 Vactron. This brings the total cost to $39,462,
$1,462 more than budgeted.
ACTION REQUESTED:
Staff recommends authorization to be given to purchase the new F550 Ford with dump bed and
chipper box. Staff recommends authorization to be given to purchase the new Vactron.