Agenda - Council Work Session - 01/10/2023

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CC Work Session Meeting Date: 01 / 10/2023 Information 2.1. Title: Review Proposal to Order Two Single -Axle Plow Trucks in 2023 in Lieu of Replacing Motor Grader in 2026 Purpose/Background: Purpose: Review staff's proposal to order two single -axle plow trucks in 2023 in lieu of replacing the 1999 John Deere Motor Grader in 2026. Background: Attached is a memo that staff presented to the City Council during their work session on September 13, 2022, seeking direction on ordering two single -axle snow plow trucks to help maintain a City-wide 8-hour snow removal schedule in lieu of ordering a replacement motor grader for the 1999 John Deere Grader (Unit #603). After a brief discussion, staff was directed to present this proposal again in January of 2023, after the 2023 budget is adopted and before 2024 budget discussions begin. Staff therefore contracted the vendors the City of Ramsey utilizes to order snow plows to update estimated costs and delivery schedules. Below are the updated costs and delivery schedules based on the most current information available. As before, staff is seeking City Council direction to order two single -axle snow plow trucks in 2023 to help maintain a City-wide 8-hour snow removal schedule. Both plows can generally be funded in lieu of ordering a replacement motor grader for the 1999 John Deere Grader (Unit #603), which is currently identified for replacement in 2026 per the 10-year CIP. One new plow is needed to clear snow from City streets recently constructed with new developments, as well as new City streets that were previously constructed and are proposed to be constructed along both sides of Highway 10. The other plow is needed to cover the plow route currently covered by the motor grader. Staff proposes to keep the 1999 John Deere motor grader for grading gravel streets and other tasks best suited for a motor grader. 2023 estimated costs for new motor grader Cab / Chassis = $ 4221000 (2021 vendor quote + 17%) Buildout / Equipment = $ 65,000 (staff estimate) Total Estimated Cost = $ 487,000 2023 quotes for new single -axle snow plow Cab /Chassis (Boyer Ford) _ $ 120,273 (2023 vendor quote) Body Buildout (TowMaster) _ $ 151,886 (2023 vendor quote) Total Estimated Cost = $ 2721159 Therefore, two new single -axle plow trucks would cost $544,318 in 2023, which is $57,318 more than one new motor grader. The vendors the City uses to purchase equipment from the State contract still indicate that delivery would likely occur the first or second quarter of 2024, if orders are placed now. Payment would still be due to Boyer within 30 days of receiving the cab/chassis from the factory, and to TowMaster within 30 days of receiving the truck. As noted before, neither vendor offers pricing incentives for pre -paying before delivery. Staff is seeking Council direction on whether one or two single -axle snow plow trucks should be ordered in 2023