Memorandum

City of Lawrence

Public Works

TO:	Mark Thiel
FROM:	Tom Orzulak
CC:	Steve Stewart
Date:	4/1/2013
RE:	Request to purchase Street Division equipment.

Recommendations

The Street Division is seeking City Commission authorization to purchase 2 tandem axel Freightliner trucks with central hydraulics, dump bodies and salt spreaders. This equipment was approved in the 2013 Gas Tax budget for purchase. The total cost is $265,372.

This cost is $15,372 above the $250,000 budgeted for this purchase. In the approved budget, existing dump trucks, units 332 and 333, were to be offered for trade when the new trucks were bid. Our Fleet Division Manager Steve Stewart is recommending we utilize the K.C. Metro MACPP Bid in order to get Freightliner vehicles which have been proven with other such vehicles in the City Fleet to be more reliable and less costly to maintain. The K.C. Metro MACPP Bid contract has no provisions for trade-ins.

It is our intention to sell the existing trucks and remove them from the fleet once the new trucks arrive. They have been professionally apprised by the Kansas City Freightliner dealer and their trade-in values are $12,000 for Unit 332 and $15,000 for Unit 333 respectively.

These are to be sold or offered to other departments and the proceeds returned to the Gas Tax fund to bring the purchase price of the new equipment back within budget.

Thank You in advance for your consideration of this matter.