HomeMy WebLinkAboutItem 10 - Truck and Two TrailersMEMO TO
FROM:
MEETING DATE
SUBJECT:
RECOMMENDATION:
ITEM 0 i0
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
ROGER NELSON, CITY MANAGER
SEPTEMBER 7, 2004
APPROVAL OF A RESOLUTION TO PURCHASE A TRUCK
AND TWO TRAILERS THROUGH AN INTERLOCAL
AGREEMENT WITH THE HOUSTON/GALVESTON AREA
COUNCIL
City Council consider approval of a resolution for the purchase of a 2005 Sterling LT
9500 truck from Houston Freightliner, Inc. and two trailers from Continental Equipment
Company through an existing Inter -local agreement with the Houston/Galveston Area
Council in an amount not to exceed $162,819.40, and take any necessary action.
FUNDING:
Future equipment note debt issue
BACKGROUND:
This procurement will be made in accordance with Texas Local Government Code,
Chapter 271.102 which authorizes political subdivisions to contract with each other for
governmental functions such as the purchase of goods and/or services. The City of
Grapevine has an existing purchasing cooperative agreement with the
Houston/Galveston Area Council. A local government that purchases goods or services
under this subchapter satisfies any State law relative to the competitive bidding statutes.
The purpose of this resolution is to approve the purchase of a 2005 Sterling LT 9500
truck from Houston Freightliner, Inc. and two trailers from Continental Equipment
Company through an existing Houston/Galveston Area Council contract.
The far northern area of the Service Center property has been used as a temporary spoil
material deposit area by the Parks Department and the Public Works Department. Once
the volume of spoil material reaches a certain point, the material is hauled to a local
landfill by a commercial trucking firm. This haul activity occurs several times per year.
The Parks Department and the Public Works Department currently budget a combined
$80,000 annually to remove and dispose of this spoil material generated from their
maintenance activities.
0:\agenda\9-7-04\Truck & Trailer Purchase Memo
August 23, 2004 (3:36PM)
Page 2
Dove Loop, currently under construction, cuts through the spoil storage area and has
eliminated much of the area reserved for this spoil material storage activity. The current
haul schedule will result in very large, unsightly stockpiles of material that will be visible
from the new road. To prevent this occurrence, more frequent hauling efforts will be
necessary to keep the stockpiles to an acceptable size.
Based on this need for more frequent haul off activities, staff has concluded that it will be
more cost effective to perform the haul off with current staff and purchase the necessary
equipment for this activity.
Capital cost of acquiring new equipment is as follows:
COSTS
• Truck $ 88,208
• Low Boy Trailer $ 37,861
• End Dump 36,750
Total ............. 162,819
Recurring costs/year is as follows:
• Fuel and Oil $ 18,650
• Maintenance cost $ 6,700
• Operator (utilizing existing
Personnel) $ 0
Total ................... $ 25,350
The annual truck hauling expenditures that would be eliminated through the
implementation of an in-house trucking program.
SAVINGS
• Streets (spoil removal) $ 30,000
• Utilities (spoil removal) $ 30,000
• Parks (spoil removal) $ 20,000
Sub -Total ................. $ 80,000
0:\agenda\9-7-04\Truck & Trailer Purchase Memo
September 1, 2004 (2:12PM)
Page 3
In addition to providing a means by which spoil can be hauled off, this equipment
purchase will also provide a means by which the Utility and Street Divisions can
transport equipment and raw materials to the project sites in house, thus saving the haul
costs. The potential cost savings are as follows:
• Equipment Haul Trailer
- Rental Cost $ 5,000
• Utility Raw Material ($5.50
/Ton 1,600 tons) $ 8,800
• Streets Raw Material ($5.50
/Ton 2,000 tons) $ 11,000
Subtotal $ 24,800
Total Annual Savings $104,800
The initial capital costs would be recovered in second year of the in house operation.
Following the recovery of the capital costs, the City would achieve a savings of
approximately $79,450 annually ($104,800 costs - $25,350 annual recurring costs
$79,450).
Staff believes that purchasing these vehicles through HGAC will provide tangible
benefits to the City.
Staff recommends approval.
HE
0:\agenda\9-7-04\Truck & Trailer Purchase Memo September 1, 2004 (2:12PM)
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, AUTHORIZING THE CITY MANAGER
OR THE CITY MANAGER'S DESIGNATE TO PURCHASE
VEHICLES THROUGH AN ESTABLISHED INTERLOCAL
AGREEMENT WITH THE HOUSTON/GALVESTON AREA
COUNCIL AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas is a local government in the State of
Texas and as such is empowered by the Texas Local Government Code, Section 271.102
to enter into a cooperative purchasing program agreement with other qualified entities in
the State of Texas; and
WHEREAS, the Houston/Galveston Area Council is a qualified entity as authorized
by Section 271.101 of the Texas Local Government Code; and
WHEREAS, the City of Grapevine, Texas, has an established Inter -local Agreement
with the Houston/Galveston Area Council and wishes to utilize established contracts
meeting all State of Texas bidding requirements for the following vehicle and trailers:
1 Each 2005 Sterling LT 9500 Cab and Chassis
1 Each Trail King TK110RG (Upgraded to TKSHR30)
1 Each Trail King Haul Trailer, with Detachable Gooseneck
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated in the above preamble are true and correct and
are incorporated herein as if copied in their entirety.
Section 2. That the City Council of the City of Grapevine authorizes the purchase
of the vehicle and trailers for a total cost not to exceed $162,819.40.
Section 3. That the City Manager, or his designee, is authorized to take all steps
necessary to consummate the purchase of said vehicles.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 7th day of September, 2004.
ATTEST:
RES. NO.