Agenda - Council - 10/12/1993 - Laserfiche WebLink

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,I I CONSIDERATION OF CONTRACT SNOW PLOWING By: Steven J. Jankowski, City Engineer Background: The proposed 1994 budget does not contain funding for replacement of Unit 607, a 1982 2-1/2 ton truck. Four 2-1/2 ton tracks along with two graders comprise the major equipment which addresses the six snowplowing routes into which the City is divided for major snowplowing operations. The Public Works Supervisor has indicated that he is prepared to utilize Unit 607 for the 1993/1994 snowplowing season; however the City may wish to consider this as an opportunity to investigate the benefits of privatization. The Cities of Brooklyn Park, Maple Grove and Plymouth all contract a portion of the snowplowing operations. Below is a cost comparison between purchasing and maintaining a truck and contracting for the snowplowing for one of the six circuit routes. The following analysis assumes 12 major plowing operations each year taking an average of eight hours per operation: Contract Plowing ---- 96 hours @ $60/hour $5,760 Ci_ty Plowing Truck payment ($48,002, General Fud Cost @ 13 years)* Truck depreciation ($72,000 / 13 years) Fuel Labor ($11/hour) Maintenance & Repairs Cost of Garage Space* TOTAL: Assumes 600 sq. ft./unit @ $45/sq. ft. (30 years) *Assumes term cost of money at 8% $6,073 5,538 5OO 1,056 250 2,400 15,817 The above scenario implies this vehicle would serve no other function than snow plowing. The attached vehicle utilization shows that while all four 2-1/2 ton vehicles are used during the months of December through March, (1991-1992) two of these vehicles were completely idle during the months of April, May, June and September. All four tracks were used in August; however, two trucks had less than 125 miles each. This usage is indicative of larger scale hauling or overlaying operations, which from the 1991 data appear to be infrequent. Nonetheless, the capability of being able to mobilize for such an operation needs to be weighed against the cost of owning and maintaining the existing number of vehicles. At the time of this writing, two contractors have indicated a willingness to perform snowplowing for the City. Based upon information received from the City of Plymouth, I have prepared a draft contract which I have enclosed. I intend to meet with the contractors prior to the October 12th Council meeting to discuss its acceptability. I also intend to have the Public Works Supervisor inspect the equipment the contractor proposes to use for the contract work prior to entering into the agreement.