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